Student Loans With Bad Credit: A Review of the Facts

The economy and the worldwide job market have taken a serious hit lately. There are many people out of work or working for much less than they need to sustain a middle class quality of life. For most of the unemployed or underemployed, the only ticket out of their current state is through further training and education. With the right degree, even a down job market can be navigated through with ease. The problem with this scenario for many adults, however, is that their bad credit scores make the acquisition of student loans seem nearly impossible.

Getting Funding for School

The truth of the matter is that bad credit is always a barrier when looking for personal loans, but student loans are a different type of financial package. Instead of requiring a credit check, student loans are given based upon need and often do not take credit into account whatsoever. The reason that this can happen is simple: since the loans are only meant to finance school expenses, such as tuition and books, lenders feel that the investment is worthwhile. Once you finish school, the new job you get will more than help you pay back the money that you owe.

Another reason that student loans are given to those with bad credit stems from the special circumstances surrounding their repayment. Many loans are not repaid until after you are no longer enrolled in school, meaning that you are not required to maintain a job to repay your loans as long as you engage in full-time study. Also, student loans are the only loans that cannot be discharged in bankruptcy. This means that no matter what, you will need to pay this money back.

Finding a Source for Student Loans

There are several institutions and entities that offer educational funding and who are willing to work with those who have bad credit or no credit history (such as students just out of high school). The federal government is the most popular place to start. By filling out the Free Application for Federal Student Aid (aka FAFSA) at the same time that you apply to schools, you will automatically be told how much money you are qualified to borrow each year. This amount will vary depending on your financial need, level of education (graduate students are offered more money than undergraduates) and the credit load that you carry each semester. You can fill out the FAFSA online through the U.S. Department of Education website.

Once you have determined how much money is offered by the federal government, your next stop is to talk to the Financial Aid department at your particular institution. The people there can inform you of any college-specific loans and scholarships that may be available to you. Sometimes, depending on your major, individual departments can offer grant and work-study money as well. You can find out about these opportunities through your Financial Aid office or from the department secretary at your school.

There Is Private Help Available, Too

The final option for those needing extra money for school - perhaps to fund living expenses, for example - is to look into private lenders. Even with bad credit, student loan packages can be arranged through private lenders that will take your status as a student into account and help you to fund your education. Since you have bad credit, there may be a higher interest rate than those offered by federal loans, however.

Finding the money that you need to fund your college education is easier than you thought. Even with bad credit, student loans can be found with ease. With a few simple steps, you can be on your way to getting the degree and job you have always wanted.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com

Student Loans In A Rough Economy

In today's harsh economy, student loans are a burden that most middle class Americans must bear in addition to other obligations. They are a nagging, consistent hole in which most of us have to sink a few hundred dollars per month for years on end. Recently, the costs have become so burdensome that some are riding the coattails of recent Wall Street protests and calling for a complete subsidization or removal of all student loan debt to help spur on the economy. Of course, this is an absurd request for most logical minds. We all voluntarily read and happily signed documents knowing full-well what the terms were when we began college. It does, however, exemplify the pains being felt by many Americans in this turbulent economy.

In Texas, a November 8, 2011 ballot initiative will ask voters if they are willing to let the state of Texas to issue bonds to finance student loan programs. Of course, this isn't a new tax, as officials are quick to point out, but simply the offering of bonds that citizens can purchase that will feed money into an aching academic loan program. With grant money increasingly tightening, the state has shown a need for money to keep these programs alive. Other states will likely follow.

A recent look into student loan defaults in Ohio showed dismal results. More and more students are defaulting on their loans, which is another reflection of the tepid economy. Ohio went from being ranked only 33 in student loan defaults in 2008, to ranking 28 in 2009 and 18 in 2010. The national student loan default rate is 8.8 percent. One tech school in Ohio had a 22 percent default rate. These are alarming numbers indeed. A representative of Franklin University stated that those who are most likely to default on their loans are those who quit school early. So making sure one is at a school that fits well and in a program that can be reasonably completed is critical.

Some people turn to bad credit loans to try to educate themselves and get a better paying job. These loans can occasionally render the individual even further in debt, particularly if the student quits before graduation. Of course, if the student can finish school and actually acquire a new, better-paying job, then a loan can actually help rebuild credit. Typically most subsidized lenders are very willing to work with people, and if a borrower has issues repaying the loan they can get into a deferment or forbearance plan that will protect the borrower's credit.

In conclusion, new students should carefully read and seriously consider all terms when signing a loan contract. Students should also be sure that the school that they are attending is right for them, and they should ensure that they have a realistic chance of completing their course of study. Finishing college, whether two-year or four-year college or otherwise, is critical. Finishing school and landing that dream job can greatly ease the pain of nagging student loan payments.

Christine is a mother and former student who still bears the burden of student loan payments. She contributes to a student loan forbearance information site. Check out the site for more information on student loan deferment.

Student Loans Available Directly From The Federal Government

Federal Direct Student Loans are available to assist those vocational, undergraduate, and graduate postsecondary students (or their parents) and allows them to borrow money directly from the Federal government. It's done this way so that these students or their parents do not have to take out loans through private or other commercial lenders that oftentimes have much higher mortgage rates or simply will never provide a loan.

There are different variations of a Federal Direct Student Loan available; they are determined by whether or not the student is eligible for government assistance. Need based programs include the Stafford Loan and the Direct Subsidized Loan; while non-need based programs will be the Direct PLUS program, and the Direct Unsubsidized Loan.

Federal Direct Student Loans are overseen by the Department of Education. In order to be qualified to receive Federal Direct Student Loans the student needs to be a United States citizen or an eligible non-citizen (therefore those with Alien Registration Cards or those with Arrival Departure Records with specific designations). To qualify for Federal Direct Student Loans the student must be accepted or currently already enrolled in a degree or certificate program. The student must be at least a half-time basis undergraduate, graduate, or professional student at a postsecondary that participates with Federal Direct Student Loans. Students usually are not allowed to owe a refund on another a Title IV grant, and cannot currently have a Title IV loan that is defaulted. The student may also have to get a certification of eligibility from their school.

For students that are already signed up for college to remain eligible for Federal Direct Student Loans they have to maintain satisfactory academic progress in their course of study. Whenever they neglect to do so, it is grounds to start the repayment plan. If this were to occur though the student would be notified before the loan simply went into repayment.

Before acceptance, the school that the student is attending/enrolled in must certify that the borrower is eligible to be given the funds from the Federal Direct Student Loan. Schools can grant the students the money by issuing a cash or check, transferring the money electronically, or applying the sum directly to the student account at the school.

Repayment on Federal Stafford loans begin around six months after the student stops being enrolled in at least one-half the normal full-time academic course load. This can be either graduation or termination of the program by the student or school. For the other loans that are available under the Federal Direct Student Loans, repayment starts within 60 days after the student is no longer enrolled.

The overall loans were $13,022,000,000 in 2007; approximately $14,103,000,000 in 2008; and approximately $14,867,000,000 in 2009. There were over 2.9 loans in 2007 alone.

For additional info on Federal Direct Student Loans, the student can contact the Department of Education or the school that they attend/are enrolled in. Applications for the Direct Subsidized and Unsubsidized loans are extracted from the school. Direct consolidation loan applications are obtained from the Department of Education.

Michael Saunders is an editor of TopGovernmentGrants. He maintains Websites providing resources on small business grants and children grants.

Student Loan Forgiveness Programs

One of the most intimidating things about graduating college is the prospect of paying back the student loans used to finance your education. Many students are unaware of the large number of student loan forgiveness programs that can eliminate all or a portion of your college loans at no cost to you.

To qualify for one of these programs, there are certain criteria that you must meet, ranging from performing volunteer work to working in a particular profession or even agreeing to work for a certain period in a disadvantaged community.

The value of these programs ranges from a few thousand dollars to more than a hundred thousand, depending on the amount of student loans you have and which program you choose to apply for.

Because many students are unaware that these programs exist, many of these receive only a few applications each year, leaving tens of thousands of dollars untouched. If you want to get a head start in life by getting rid of your educational loans as soon as possible, the following information will help you get started.

Student loan forgiveness programs differ from student loan repayment programs. They are created by the Federal Government and are good for federally funded loan programs such as the Stafford and Perkins Loan programs. Participation in one of these programs means that all or a portion of your student loan debt is simply "erased" or taken off of the amount you owe.

On the other hand, repayment programs, which are more common than forgiveness programs, are used on any type of loan ranging from private loans to federal student loans. In most cases, these programs are offered by your employer who makes payments on your behalf to lenders.

To find a student loan forgiveness program, start by talking to your school's financial aid department. If you go into certain professions such as teaching, nursing, or law enforcement, you may be eligible for such a program as long as you agree to work under certain stipulations.

This can be a great opportunity because it allows you to begin working in the career of your choice right away, helping you gain experience, while paying off your college loans at the same time. For students who have recently graduated, many employers in these fields offer repayment programs as an incentive to hire talented graduates, so be sure to inquire with any potential employer as well.

For student loan forgiveness programs that are based around volunteer work, contact your local AmeriCorps or PeaceCorps program. Both of these agencies are willing to pay off all or a portion of your student loan in exchange for volunteer service. In some cases, you can complete your volunteer work while you are still in school, and many students find that the experience is deeply rewarding on a personal level. Volunteer work also looks great on employment and graduate school applications, so there are many reasons to consider these programs.

With some careful planning, you may never have to make a payment toward your loans at all. Talk to your financial aid office and look for online resources to get started today.

Steven C. Brown is helping nursing students prepare for exams and tests. Read more about nursing careers and the TEAS test when applying for a nursing school.

Paying for College - Did You Overlook This Solution?

 

Don't make the critical mistake of following the crowd when it comes to paying for college. When considering ways to pay off student loans, following the herd could leave you staring down a double barrel shotgun. The cost of a college education continues to rise while employment prospects plunge. Defaults on college loans are the highest since 1997. However, thinking outside the box can have a surprising benefit when it comes to paying for college.

The Dilemma

Paying for college during these economic times has become more challenging than ever before. Families of all income levels find themselves searching for funding as college costs mount and personal resources disappear. Tuition costs increased nearly 6% more than the general inflation over the past decade. According to the John J. Heldrich Center for Workforce Development at Rutgers University, the median starting salary for graduates from four-year colleges in 2009 and 2010 was $27,000. Making matters worse is that only 74% of college grads under the age of 25 had jobs according to labor economist Andrew Sum. Perhaps, through no fault of your own, you are faced with the uncertainty of the economy and your ability to pay for college. You might even wonder if it's worth it.

Following the Herd

Generally speaking, college graduates earn more than non-graduates so it is good to have that degree. However, if you're in the one-in-four segment that isn't employed or the one-in-two who is employed in a job other than your degree field, paying for college becomes a nightmare. News reports frequently disclose the plight of college students and recent grads that are waiting on tables, tending bar, working as administrative assistants and the like. Nearly half of recent grads report their first jobs don't even require a college degree. Let's face, it those jobs are not going to repay a student loan. Starting your career in a lower-quality job or one with low pay puts you on a worse pay projection that might take decades to overcome. However, there is an option available that you might not have considered.

The Road Less Traveled

This is the story of 5 different people, all in their 20's, who were looking for a way to create financial stability during uncertain financial times. Some of them had some college expenses, some did not. The one thing they had in common is they wanted a way out of their current financial situation and they were willing to work. Each of them began a career that within 2 years had created a six-figure annual income.

How did they accomplish such a feat? They did it through direct sales. Some current statistics from the Direct Sales Association demonstrates why paying for college through direct sales is very attractive.

• The median gross annual income for a direct seller working full-time is $34,130

• Reasons for entering direct sales: supplement income 51%; full-time income 34%

• 70% of direct sellers rate their experience as "very good" or "excellent"

• 84% of direct sellers indicate their experience in direct selling has met or exceeded their expectations

• 82% of sellers indicate they are extremely/very likely to continue with their direct selling business

• 47% of direct sellers have been with their company for five or more years

Do you see what I mean about paying for college through the overlooked direct sales field? Most people simply weren't aware how favorable it compares to traditional methods of paying off student loans.

The rising cost of a college education, disappearing employment prospects and increasing student loan defaults make this an excellent time to change your circumstances. You can take positive steps to ensure you have the funds for paying for college and who knows, you too might discover a fascinating and rewarding career you had not considered.

Paying for college need not be a terrifying or an unrewarding experience. When you're ready to earn an extra income using proven techniques, visit Michael Wethington at Paying for College and learn how to do on a part-time or full-time basis. Mike teaches direct sales using the power of the Internet to a diverse group of successful entrepreneurs. Visit Mike at http://www.wealthsprings.com/

How To Keep From Getting Into Trouble With Student Loans

 

The most effective debt management strategy is to be completely debt free but this is not always realistic. If you want to go to college and further your education you may have to take out student loans. About 55 percent of all people attending a college pay for their education with a student loan.

Student loans are how a lot of people pay for their college nowadays. To some people it is the only way they have to pay for college. It is the lenders hope that when the student finishes and graduates college that they will get a job that will make it possible for them to repay their loan with no problems. But borrowing more than they can afford to repay is what gets a lot of people into trouble and causes them to default on their loan or loans.

You should start thinking about how you are going to repay that loan before you ever sign the loan document. And you should never borrow more than you know you're ever going to be able to repay. By borrowing for your education you are making a long-term commitment to your career and your life for a number of years to come.

For that reason its important that you read and understand all documents you are provided before you sign anything and you should be sure to file and keep your copies of the documents until the repayment has been completed in full.

Tip #1 Be Sure To Do Your Own Research

Not all student loans are the same. Never assume that yours will be the same as your brothers or your friends. Read any and all paper work so that you know exactly what is going on. Be sure that you know and understand everything before you sign anything. See if the documents offer you incentives for repaying on time. See if there are ways you can qualify for reduced interest. You may want to go to your college and speak to your financial aid officer with the loan documents in hand so that all of it can be explained to you.

Tip #2 Always Pay Careful Attention To Your Mail

You will most likely get important information in the mail about the student loan that you took out. Again its very important that you read and understand fully everything that any paper work you receive contains. If you have questions write them down and call your financial institution and ask your questions. Be sure that you get an answer for every question you have. Always be sure to open and read any documents when you get them. Don't be hit with a surprise some where down the road.

Tip #3 You Should Always Be Organized

You should organize and keep a copy of any and all paper work that you receive. This way you can check back and see exactly what you have agreed to and what is expected of you. Be sure to know and understand fully at what point you're going to have to start repaying your student loan. Have a file or a folder where you keep all related documents. If you have everything in one place you can always refer back to it any time you need to and know exactly what your responsibilities are and what you are required to do as outlined in the documents you received.

Tip #4 Be Where You Are Supposed To Be When You Are Supposed To Be

When you take out a student loan you will be required to take part in and complete loan counseling sessions. These will usually take place when you first take out the loan and when you graduate from college. Most institutions will give you 90 to 120 days after you graduate before you have to start a repayment schedule.

Tip #5 You're Going To Have To Manage Money Like A Pro

The first thing you should do while still in college is get a job even if it is only on the weekends and save part of the money to make loan repayments with. Don't waste money while in college and don't make purchases you don't really need. You will need to establish and live with a realistic budget both while you are in college and after you graduate. At this same time keep in mind that you should not borrow more than you need. Don't set yourself up to fail and default on your loan before you even make your first repayment. If you have a credit card always pay the amount you owe off in full every 30 days. Never use the credit card for more than you can repay every 30 days or you will end up getting yourself into financial difficulties.

Your financial ad office staff at your local college are the best people to go to with your student loan questions. They may also be able to give you information on work study programs and some states even have programs that will repay your loan for you if you work for instance for say five years in the states public health program. So write down your questions and go in to your colleges financial aid office and ask your questions.

Thomas Byers writes at various locations around the web and he likes to do research on student loans and how to keep from getting into trouble with a student loan. If you would like to read another of his articles on student loans and the pitfalls of student loans just click the below web site URL now.

http://crazyhorsesghost.hubpages.com/hub/Borrowing-Student-Loans-Responsibly-2

Even With Bad Credit, Student Loans Are Available

Many Americans are increasingly finding that it is essential for them to earn a college degree in order to advance in the workplace in the 21st century. Whether you are a recent high school graduate or simply an adult looking to expand your working skills and resume, getting a Bachelor's degree or continuing on to graduate study, will make a huge difference in your earning power over the course of your life. In fact, just earning a two year Associate's degree is said to increase your yearly earnings, on average by $10,000 per year. Over your lifetime that $10,000, which increases exponentially with higher degrees, can make the difference between a comfortable middle class lifestyle and living paycheck to paycheck.

Bad Credit Barriers

The problem that many Americans simultaneously face when it comes to college, however, is a struggle affording tuition payments. Many young students have no credit history and therefore fear they cannot obtain a student loan. Older students may have made credit mistakes in the past and ended up with a bad credit score. Either way, financing your college education through student loans can seem challenging.

However, there are many options available to college students that provide specialized help. These loan programs recognize the importance of an education and will allow you to borrow money to be able to afford college regardless of your credit score.

Federal Student Aid

The federal government is one entity with a vested interest in helping students to get the money they need for college. Through several popular loan programs, the government provides low, fixed interest student loans that will not take credit into consideration. The most popular among these loans is the Stafford loan program which is easy to qualify for and does not require a credit check. Almost anyone can qualify for a Stafford loan, but there are two issues that may cause a barrier to getting the money you need.

1. Default on previous student loan payments - if you took a student loan in the past and failed to repay it, the government will not lend to you again until you settle that debt and/or become current in your repayment.

2. Criminal history - if you have a felony on your criminal record, there are also barriers to being able to obtain federal dollars for student loans. However, the government does offer counseling services for those with a criminal background that will help you to qualify for their student loan money.

Other than these two issues, all college students, regardless of their level of education, will receive Stafford loan money without hassle.

Private Lenders Also Provide Options

Once you look into the possibility of getting money through the federal government's programs, your next option is to look towards private lending options. Though bad credit will have an impact on the interest rates that you pay, private lenders are willing to work with you to fund your college education. There are many online lenders who specialize in bad credit student loans who will help design a repayment plan that takes your student status into consideration.

The benefits of college over your lifetime are too great to count. Earning a college degree has a huge impact on your job prospects as well as your ability to earn money. Making the choice to go to school is one of the best ones you can make for your future and, as a result, there are several ways to finance those dreams, even with bad credit. Student loans are available for anyone who has the desire to learn.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com