Bad Credit College Loans... Where???

"Bad Credit College Loans" is what you type into your search engine. What you get back are countless sites telling you that college loans for bad credit are federal student loans.

You probably won't get a loan offer from them, but they will steal your identity or try to sell you credit cards or credit repair.

It's true that Stafford and Perkins loans do not depend on credit. But they do depend on that little thing known as EFC (expected family contribution). So they are usually not enough.

How Bad Is Your Bad Credit?

Disbursement of Private College Loans by Credit Score

But when you find one, you may not be able to use it anyway. A bad credit lender will:

• expect you to start making payments right away (Unless you are working full-time, this is not an option.)
• charge you around 20% interest (if you are lucky)
• want to lend you a large amount (probably not under $10,000- less overhead for them)

So, Looking for College Loans with Bad Credit?

• Register at a National Database for College Grants and Scholarships

  If you can get free money, then you don't need bad credit college loans. (And you don't need to be a super student, either)

• Establish Good Credit for the Student

  While students are still in high school, have them open accounts in their own name, make needed purchases and always pay on time. The reason most college students cannot borrow on their own is that they have not established any credit.

• Find a Good Credit Cosigner

  There's no rule that says it has to be a parent. Got a good-credit aunt, grandparent or godparent that is fond enough to sign? Go for it! You never know until you ask.

• Think about Parent College Loans

  Apply for a federal parent PLUS loan. Yes there is a credit check, but unless they have a bankruptcy,or a foreclosure, they'll probably get the loan. Congress has even mandated that parents should not be turned down if they are up to 180 days late on their mortgage.
  
  If they are turned down, you qualify for an extra $4,000 per year in Stafford loans.

• Choose a Larger, More Expensive School

  It may seem counter-intuitive, but the more expensive schools often have their own resources they can use to help students who are turned down for loans. They generally do not advertise these services, (sometimes called university student loans or institutional loans) so you will need to contact the financial aid office and ask whether anything like this is available.

• Look into Peer to Peer Loans

  These are a fairly new form of social networking that is catching on fast. Bad credit is not an automatic turndown.

• Start a WebBusiness to pay college costs

  Many students have found that the low start-up costs and flexible hours involved in sharing their interests and experiences are a convenient way to make money.