by Dave Davis
Are you getting ready for college? If you are, you may be worried about getting financial aid, especially if you have bad credit. There is hope, there are many different programs available that allow people with bad credit to get loans and grants. You simply have to know where to look.
Two of the options you have available are Stafford loans and Perkins loans. There are also various grants that are available even if you have bad credit. Pell grants are one such option. Your credit history isn’t considered during the Pell grant approval process.
The most commonly used loans are Federal Stafford loans. There are two different kinds of Federal Stafford loans. There is the subsidized loan and the un-subsidized.
Stafford loans that are subsidized are given only to individuals who are in need, but are extremely helpful if you can qualify. The federal government takes care of the interest on these loans through school and for up to six months afterwards.
Unsubsidized Stafford loans are given to anyone who wants them, but are somewhat different than the subsidized version. The funds that can be taken are somewhat smaller then the subsidized version and the federal government doesn’t pay for the interest that builds up.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
If you have financial need, you may be able to qualify for Pell grants, even if your credit is bad. Credit history isn’t considered for the grant approval process. These grants may be large or small. The amount you can get is determined by how much need you have.
Pell grants are great because they don’t need to be paid back. As long as you complete the semester for which you are granted the funds, the money will be yours. They are a great way to fund your education, even if you have bad credit.
