Student Loans: How You Can Get Them Even With Bad Credit
by: neofuture
Total views: 328
Word Count: 464
If you have a poor or no credit score, private loans - most often offered by banks and/or financial institutions - will most likely deny your application. These banks or institutions most likely look at your credit score, but they also take a look at your potential earning power. If you are going to school for computer programming, you may be able to receive a loan. You may also receive a better interest rate than someone who is going to school for, say, creative writing.
Great student loans for those with little or no credit are government-backed loans or loans offered through your school. One such option is the Stafford loan. When the student borrows these loans, most lenders do not look at the student's credit history. You can apply for a Perkins loan as well, which also does not look at your credit history. The government supplies the money for this type of loan, but it is reserved those who are most in need, so this option is not available for everyone. The only exception: if you have previously defaulted on a government-backed loan, you will be automatically ineligible for a Perkins or Stafford loan now.
Because Perkins and Stafford student loans are often limited to a particular amount per year and in total, there are also government-backed student loans for parents of students, called PLUS loans. Because these are government-backed loans, lenders - whether a financial institution or the government itself - do not look at anyone's credit score. These lenders do, however, take a look at your credit history to determine if you are late on any payments or in default. If so, you will not be able to receive a loan.
One thing to remember with government-backed loans is that, though you can defer payments and you may have very low interest rates, you must re-pay your loans. The government cannot only hire a bill collector, but they can confiscate your federal tax refunds or even deduct the payments from your wages. Also, if you declare bankruptcy, more often than not, your student loans will not be forgiven. Though this may seem harsh, the government does offer a number of options to help you repay your loan. If you have bad credit or no credit, students loans can be a good option for you.
Article Source: http://www.ArticleStreet.com/profile/neofuture-525.html
About the Author
Tom Ambrozewicz, mortgage and real estate broker since 1993, is one of the pioneers in using breakthrough audio technology on his web sites. You can read or you can listen to professional narrator reading to you. You can check all credit tips at Ask-How.info now.
Rating: Not yet rated
Latest articles contributed by "neofuture"
1: A Good Scrapbook Foundation - How to Take Better Pictures2: Eggs Are A Star Of Breakfast Camping Recipes
3: A World of Possibilities: Blue Ridge RV Camping
4: Low Budget Camping in France
5: Quality Gear: The Backside Sleeping Bag
6: Backpack: Camper's Camel
7: The Best Hiking Boots: Don't Consider Brand, But Quality
8: Finding the Backpacking Sleeping Bag Worth Packing
9: Expand Your Camping Experience With An ATV Camping Tent Trailer
10: 2nd Camping Gear Sale