Student Loans: Bad Credit Is Not a Barrier to College

October 20, 2011 – 5:26 pm

Choosing to go to college, whether you are trying to train for a new career or simply move up in your current position is one of the best decisions that you can make. It is a fact that those with more education make more money over their lifetime. Therefore, financing a college education, no matter how expensive it may seem at first, is always a worthwhile investment. Even if you have bad credit, student loans can help you achieve this dream of obtaining a college degree and a secure job and paycheck in the future.

Getting a cosigner Is Wise

Many people with bad credit struggle to acquire loans since their history of repayment on previous loans was not too good. Lenders consider them a risk and therefore refuse to believe them when they claim to have reformed. However, if you can convince a family member or close friend of your sincere desire to return to school and responsibly repay any loan money that you take out, you may be able to convince a lender as well.

Student Loans are often offered in the same manner as personal loans. That is, they are given to those with bad credit as long as they employ a cosigner. A friend or family member with a good credit score who is willing to vouch for you and put their name on your loan can be the key to obtaining the student loan that you need. However, it is very important to note that your contract with this lender can affect the credit of your loved one as well. This is why knowing your intentions and having a solid plan for repaying your loan is essential. Otherwise, you risk saddling the other person with your debt and likely ruining your relationship.

Look for Special Programs

Another great option when it comes to student loans is the many special programs offered by the federal government, individual schools and private lenders. Student loans are specifically designed to help pay for tuition, room & board, and books fees for college students. Basically, they finance the essentials so that you can concentrate on your education. Because of the benefits of that education, the government and other entities are willing to overlook your bad credit history and offer you loans at low interest rates that will stay fixed for the term of the loan.

There are several programs to choose from. They include: subsidized Stafford loans, unsubsidized Stafford loans, Perkins loans, PLUS loans, and Pell Grants. There are also many colleges that will help you finance your education through grants, scholarships and work-study programs. Private lenders who specialize in helping students afford their degrees can design a lending package that is specific to the needs of a student who cannot work full-time. One other option is to look to your current employer for reimbursement options if the education that you obtain relates to the job that you currently have.

You Can Afford the Education You Want

Bad credit happens for a number of reasons. Many times the circumstances are out of your control. This does not make the effects of bad credit any less hard to take. However, bad credit should not be a barrier to getting money for college. Student loans are a specialized form of lending that will allow you to get money without a credit check or with special compensations for your bad credit score.

By looking at all the options available to you, the likelihood of affording college is far greater. Over time, the education that you receive will positively impact the salary you earn and help you to achieve the life that you always dreamed of having.

Sarah Dinkins is a financial advisor who has been associated with Unsecured Personal Loans since long ago. She also holds a master degree in economics from Harvard University. To find home loans with bad credit and other financial products please visit


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