Instant Student Loans for Students with Bad Credit

There are many different ways of acquiring a short term loan dependant on your credit history and ability to repay. The lending criteria of any organization depends on an individual being employed, so what if you are not employed but need a quick loan? Students fall into this category and with the rising costs of living expenses and tuition fees, many students can find themselves in difficult monetary situations and with no employment to solve this. In fact, even before they have gotten started, a student can get a bad credit history. Is there any help available to students with bad credit? The answer you will be pleased to hear is “yes”.

Help is at hand
There are specific loans that a student can apply for to help with essential fees such as tuition fees, accommodation fees as well as essential book and computer fees. Applying for a bad credit student loan can take place via an online application form. Even with a bad credit history, you can apply as there are some companies that will not even do a credit check. It is very easy to get into debt, particularly as a student as budgeting is all part of a learning process. In fact for many, it may be the first direct experience of managing money and it is not quite as easy as parents make it look. It is very easy to get into debt and once there, it can be difficult to negotiate your way out again.

Government assistance
The government has recognized that students need a little help and as they are the generation of tomorrow. They are taking steps to work with colleges, schools and financial institutions to offer bad credit loans. Students with bad credit may apply for a loan in the traditional way and find they cannot get the loan. Once declined, this will also appear against their credit record making it even more difficult to obtain a loan and so the downward spiral continues. Two kinds of bad credit student loans are helping students at the moment; federal Stafford loans and federal Perkins loans. Both these loans are very low interest and specifically aimed at students. The government insure the loans against default in payments so if for any reason a student is unable to repay after completing their academic course the lender does not lose out as the government guarantees the loan. These loans are not a standard amount and vary according to a student’s needs. The education establishment will assess the student’s criteria for the loan and whether they are eligible or not.

What if I can’t get a government loan?
There may be occasions that a student is unable to receive a government assistance loan and this may be through no fault of their own. It can be perhaps because the academic institution is not a part of the student loan program. In these cases, there are some private lenders that will offer bad credit student loans too. The interest rates on these will be higher than the government-backed bad credit student loans.

Other bad credit loans
If you apply to a private lender for a bad credit student loan, they may not even look into your credit history. You will find the interest payments slightly higher, but after 2 years or so, they will generally be reduced after consistent payment. Additionally, once you have received your bad credit loan, it can act as a way to increase your chances of obtaining a regular loan in the future if you make the repayments on time and don’t go into default. This can lead to the repairing of any bad credit history. It is always best to consult with your college or university initially as they will be able to provide the best deal.