Getting Credit Where Credit Is Due: Student Loans With Bad Credit

There is a growing divide between rich and poor in the United States. The poor, stuck with under-paying jobs find themselves at a perpetual disadvantage. Forced to buy on credit, the working poor often find themselves finding lenders and credit cards with exorbitant interests rates and rigid payment schedules. To make ends meet, often, something must go unpaid. That means nicks and knocks in one's credit score. When living from pay check to pay check, often thoughts of the future are not paramount in one's mind.

But one thing all of us share in common is the desire that our children have the best we can provide. In order to succeed in our society, college is almost a necessity. Education is a key to moving from poverty to prosperity. Still, how to pay is a problem.

Don't Give Up

Many young people of college age feel their options are limited when it comes to the future. They may decide that college is out of reach and try the work force, only to find that jobs are plentiful, but good pay is hard to find. Jobless statistics in the United States only consider unemployment. A worse problem is underemployment. In an economy where the minimum wage does not keep up with inflation, those jobs are guaranteed to keep persons in poverty.

Some people decide to go back to school at a later date. Others have parents that are willing to help, but short on fund. Chances are, credit is an issue. So how does one get student loans with bad credit?

Guaranteed Student Loans

Acquiring student loans with bad credit may be easier than it seems. The United States Federal Government provides several options. The first is the Perkins Loan. These loans are available often with no credit check. Students are likely to have either no credit or poor credit. But there are more important factors involved here, such as future earning potential. The government realizes the future earning potential is increased exponentially for the person with a college degree. This means better repayment rates and higher tax brackets that benefit the government.

Acquiring student loans with bad credit may also come from the private sector. It is safer to get this kind of loan from private companies because the government regulates interest rates to no higher than eight percent. Still, getting student loans with bad credit may bring some hidden strings. In many instances, those with poor credit scores may be required to provide a co-signer. Still, if one is determined, a solution is available. After all, which is more important, one's pride or a child's future? I think the answer is self-evident.

Adding all these factors together, there is hope for those looking for student loans with bad credit. It may require lots of paper work and possible humbling due to asking someone to co-sign. But the stakes are high. The future of our children hangs in the balance between poverty and prosperity. It is more than worth it to try.