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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