Student Loans with Bad Credit and No Cosigner
Looking for student loans with bad credit and no cosigner?
For prospective college students with bad credit, it can sometimes feel as though the only way you can get a student loan is with a cosigner. If you are not able to get someone to cosign a student loan for you, do not feel as though there are no other options. The Federal Perkins loan is actually ideal for college students with bad credit who cannot get a cosigner. The interest rate, terms and repayment options of this loan are excellent.
It can certainly sometimes be a challenge to find a way to pay for college. For students entering college for the first time, it can be even more of a challenge. It is important to understand that the Perkins Loan is different from other student loans, including private student loans. For instance, there is no need to actually apply for the Federal Perkins loan. Instead, you will need to contact your financial aid office regarding these loans.
Funding for the Perkins Loans is made available to colleges and universities that participate in the loan program. The school you attend will actually make a determination regarding whether you are eligible for the loan and the amount you can receive. The information that is commonly utilized to make this determination comes from the FAFSA or Free Application for Federal Student Aid which you complete when applying for the Stafford Loan.
You should be aware that many colleges will also require you to apply for the Stafford Loan and federal grants before you will even be considered to receive the Perkins Loan. This is because only limited funds are received by schools each year and those funds must be distributed to students who demonstrate the most financial need. You should also keep in mind that the Perkins Loan is not a grant and will need to be repaid.
If you are determined eligible to receive the Perkins Loan, the funds will be sent directly to your school. There is a 5% interest rate attached to the loan; however, it is subsidized, which means that the government will pay the interest on the loan while you are in school. There is a 9 month deferment period after you leave school or graduate before you must begin repaying the loan. Regardless of whether you need a bad credit no cosigner student loan, the Perkins Loan is a good option.
If you are an undergraduate student you will be eligible to receive up to $5,000 per year. Graduate students are eligible to receive up to $8,000 per year. The maximum amount that undergraduate students may receive throughout their education is $27,500. The maximum loan amount for graduate students is $60,000. Funds from this loan program are released twice per year. The loan funds will first be used to pay for any school fees such as tuition or books. Only then will the remainder of the loan be disbursed to the student.
It is imperative to understand that while you may be determined eligible to receive the Perkins Loan, the amount you actually receive will be determined by the financial aid office of the school you attend. This decision is typically based on the number of students demonstrating financial need and the total amount of funding available to the school for that year. The annual maximum amount you may receive is $5,500 as an undergraduate student; however, there is no guarantee you will receive that amount. Consequently, it is a good idea to check into other student loans with bad credit and no cosigner to ensure you have enough funding to cover all of your educational costs.
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