subject: Navigating A Path Through Bad Credit Student Loans [print this page] Paying for college can be more stressful then attending class. When the bills start to rise so does student and parental blood pressure. Scholarships and grants alike are all wonderful ways to pay for college for some, but for others these methods are out of reach due to limited availability or need based. Many students who fall under this unfortunate category also may have bad credit. Private loans generally require a credit check, which leaves the bad credit student without a loan or education. Bad credit student loans can be the key to unlocking your education, or to further debt.
Stepping carefully online saves you from the traps that many investors set out there. Generally, these traps are high interest fees, hidden charges, and deductions from your loan. When searching for your private loans, there are some tell tail signs to watch out for.
Number one - Read the fine print! This may seem like a chore, but what if someone told you if you took an afternoon to reading that, you can earn hundreds if not thousands of dollars? This is the same case with your loans, if you do not read the fine print you will be hit with high interest and hidden fees galore.
Number two - Do not use third party sites just because their offer seems better. Remember not all that glitters is gold, and do not be taken for a fool because of the seemingly perfect deal these shady third party sites offer. Finally try to find a cosigner; this will drastically cut down your interest rates on your loans.
Student loans can be categorized in many ways. There are subsidized, unsubsidized, private, and federal. Each type of loan has its own criteria for recipients as well as for the amount to be loaned.
Federal loans are divided into two categories, subsidized and unsubsidized. Subsidized loans do not accrue interest as long as the recipient is enrolled in a college or university; unsubsidized loans however, begin accruing interest as soon as the funds are released.
Loans issued by the federal government are usually controlled and managed by Sallie Mae, and in order to receive federal funds you must fill out a free application for federal student aid, or FAFSA. These loans require a student to be enrolled at least half-time, and require students to maintain a minimum grade point average in order to remain eligible for future funds. Finally, federal loans do not require payments as long as the recipient is enrolled in school and allow a 6-month grace period before a payment is due.
Private loans are loans received from a bank, as opposed to the government. Students are expected to apply for them individually, and are usually expected to begin making payments immediately. Private loans may offer better terms, larger amounts of money and better customer service. Private student loans may also be an option for a student who has not maintained the required GPA or credit hours to qualify for federal lending.
There are many different lending options for students that may be looking to acquire student loans. Regardless of income, grades, or time constraints, there is a loan option out there to suit each individual's needs. Federal or private, there are many lending options. With all of the options available, anyone who wishes to earn a degree, whether it be an Associate's Degree or a Doctorate, can do so.
