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There’s nothing stopping education loan, not even bad credit

bad credit education loan, education loan for people with bad credit

Here’s some good news for students with bad credit. The United States of America has, so far, never deprived anyone from receiving good education, not even those who have bad credit. If the student has the drive and wants to go to school to pursue higher studies, then there is nothing stopping him/ her from receiving quality education from the best desired university.

Just be aware that anybody with a poor credit history only needs to do some bit of ground work to see and compare education loans that offer lower interest rates or for that matter, different types of borrowing options they may have as students with bad credit.

For the student with a poor credit history, all depends upon how soon he/she would need to avail the education loan to pursue higher studies. If, for instance, the priority is get to school immediately and therefore need an education loan immediately, then the interest rates for the loans may be higher than what would be in the opposite case. That is, if you are looking at an education loan not so immediately, then there are several things that one can do to improve the credit score. By starting to improve one’s financial life and thereby improving one’s credit ratings, the student could qualify for better interest rates. This could even mean that the student could qualify for regular education loans if the student gets some little time before applying for an educational loan.

So what is the scope to improve one’s credit rating before availing the education loan? Here are some options: This may be a good enough time to start repaying loans of smaller amounts from your credit card so that it helps that student build a good credit history. In the same way, the student could get a few utility bills signed over to his/her name and keep balancing the account with prompt repayments and thereby buy a good credit history. Furthermore, simply checking one’s credit card reports for inadvertent errors or some outdated false information and reporting to the concerned could sometimes improve credit scores and thereby make the student eligible for several conventional educational loans.

However, if the need for an education loan is dire and immediate, then the student has to work his/her way to a reasonably good interest rate. Although it may be too much to ask for a loan rate that may well equal interest rates of traditional educational loans, it may quite be worthwhile to do the necessary ground work so that it the interest rates that the student with bad credit pays may still be within reasonable and affordable standards.

In terms of interest rates, several applications and eligibility standards are earmarked for students with bad credit but looking for immediate education loans. The rates mainly depend upon how imperfect the student’s credit history is. If the student has flawed huge sums of loan amounts several times in the past, then predictably, the interest rates are known to be quite high. Similarly, if the student’s credit history is not as imperfect as the former, then the student can expect to avail a not-so-bad interest rate. However, the fine catch is that even though the student does not get the best rates initially, he/she can always consolidate later.

This all means to imply that money lenders -- whether private, government establishment or any other source – do look into the past credit score of the student before offering educational loans. Nevertheless, loan options for such students are still so numerous that they allow almost everyone to receive money they need to attend school.

Compare interest rates of popular education loan providers from the online links of Federal Education Loans, Wells Fargo Education Loans, Nursing Education Loans, Signature Student Loans, Student Loans, Federal Stafford Loans, Federal Perkins Loan, Private Education Loans, and US Department of Education Loans and so on for the best deal.

Sallie Mae and Wells Fargo are some of the popular names among private lenders providing education loans and have several education loans designed for students with bad credit. As for government support, there are Federal education loans with reasonable interest rates for students with bad credit. The interest rates could turn in the student’s favor if the student could well justify the dire financial need of the student in availing the loan for higher education. Stafford loans and the PLUS loans for parents are good enough options in terms of federal education loans.

In fact, parents could help their wards with bad credit seek education loans by becoming co-signers for the loan. Parents with good credit ratings can bring down interest rates of their wards’ education loans.

Also, to an extent possible, students with bad credits could even do without availing loans by seeking scholarships, participating in work-study programs, working part-time, seeking grants such as the Federal Pell Grant and the Federal Supplemental Education Opportunity Grant. By looking for such sources of financial aid, the student could reduce the amount of his/her debt.

To sum up, there is nothing that could stop a dedicated student from pursuing higher education. Not even with bad credit.
Published: 2008-01-29
Author: Paawana Poonacha Cariappa

About the author or the publisher
Byline articles for publications,PR content for corporates, syndicated articles for bigwigs, rhymes and short stories for children, and poetry for the like-minded...taking forward over 10 years experience as journalist/writer, presently working as Content Head for a Mumbai-based communications firm. You can view my bylines as "Paawana Poonacha" or "Paawana Poonacha Cariappa".

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