Don’t let your student’s dreams of attending
college be shattered because you don’t have good credit. The following will
help Tuition Loans for Parents with Bad Credit get the financial aid they need
and deserve federal loans, scholarship search assistance from an expert school counsellor
or mentor who can also provide scholarship application tips; filing special
circumstance forms which may improve their chances on receiving more money in
future years as well! And even better than all that? Boosting some key metrics
like FICO score (in less than 2 months) so applying for PLUS Loans won’t be
difficult anymore–even if things went south before.
Unsubsidized
and Subsidized Federal Student Loans Don’t Have Credit Checks
Student loans are a necessity for many graduating students. If you’re
not from a wealthy family, the only way to afford college is with a student
loan.
However, there is no credit check that’s part of the process for
subsidized federal student loans. This means that even if your credit
score is low,
you can still qualify for subsidized student loans. If you have a bad credit
score and need to borrow money, there are other options available to you such
as private lenders or personal loans.
Federal Parent PLUS Loans Have Easier Credit Requirements
than Private Student Loans
The Federal Parent PLUS loans have lower eligibility requirements than
the private student loans.
Federal Parent PLUS loans are available to parents or guardians of
dependent students who are pursuing a degree, certificate, or other program.
The subsidized rate is 6.84% for 2017-2018 academic year and 7.20% for
2019-2020 academic year, both with a $0 interest rate for the life of the loan.
Private student loans can be an option if you don’t qualify for federal
parent PLUS loan due to your credit score or other reasons. Private student
loans can still be beneficial in helping students manage their expenses while
they’re attending school.
Private
Student Loans Will Require Boosting Credit Scores
Private student loans are more expensive than government loans. They are
also harder to get approved for. As a result, many students are turning to
private student loan companies offering these types of loans. However, the
credit score requirement is at least 620 which some students struggling to meet.
The Credit Score requirement of private student loans is likely to be increased
further as many banks are trying to keep up with the competition on the market.
This will make it even harder for some students who want their education costs
covered by these types of loans.
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