At first glance you may be mistaken for believing that due to you having bad credit that getting a student loan will, therefore, be impossible; however, this is not actually the case as will be explained below. This confusion does arise due to the fact that student loans are generally just intended for people that have a good credit rating, but there are ways around this and they are perfectly legal as well.
Get someone to co-sign your agreement.
One common way to get around the problem of you having bad credit is to have someone co-sign the agreement that has an excellent credit rating. This means that they share the burden of the loan and the company providing you with the funding will also see it as being less of a risk as you now have someone who is effectively acting as a guarantor.
The idea behind this approach is that their good score will offset your bad one and this does mean that those companies that use the FICO score approach to decide if they will approve the loan will be more likely to pass you as a result. One thing to be aware of is that you may be offered a lower amount of money than you would if you had a good credit rating, but you will still be offered something instead of being stuck with no funding whatsoever. Please do note that some companies will tend to focus more on your overall credit history rather than simply this score and this can of course make a difference as to whether or not they give you any money.
The only problem with this approach is that the person that co-signs the agreement with you must trust you 100% because they will end up having to make the payments each month should you fail to do so and this will undoubtedly put a strain on your relationship with them.
Apply for federal student loans.
However, if you do not wish to place the burden on the shoulders of someone else who would act as your guarantor, then you may prefer to apply for federal student loans instead. These types of loans are different in that they do not use the FICO score method when it comes to making their decision as they base their decision purely on the financial needs of the individual. The good thing about federal student loans is that they do not carry out a credit check and this does, therefore, mean that your previous problems that have led to having a bad credit rating will play no part in their decision as to whether or not they give you that money.
They do also offer a variety of loans for students and they are designed to help you with different things during the course of your studies. You will see that they can offer both subsidized and unsubsidized loans that are going to help pay for those expenses you run up with your education and the various loans will depend upon your own individual financial needs. It is also worth pointing out that there are also some needs based loans available as well and these Stafford loans and Perkins loans are going to come with very low interest rates making them affordable for most people. Do note that you may get some subsidized needs based loans as well and this means the government is going to pay the interest and this can make a real difference to your finances each month.
Apply for private student loans.
A final option for you is to consider applying for private student loans and there are a number of companies out there that are happy to give you some funding as long as you meet their qualifying criteria. The only thing about these private student loans is that they also generally require you to have a guarantor just like loans through the normal funding channels and this can put off some people from applying.
Your guarantor can be anybody and they do of course need to have a fantastic credit rating, but you do have the same pitfalls as were mentioned before in regard to what happens should you miss a repayment. The interest rates that you pay on this type of funding can either be fixed or linked to various factors so it can go up or down depending on how the economy is performing.
It is important to point out that these companies will often offer you a lower interest rate depending on how good your guarantor is and it should also be pointed out that they are happy to give money to people that have no credit rating either. The reason for this is because, in many instances, having no credit history is just as bad as having a poor credit rating as there is no way of them knowing if you are good at paying things back or not, but your guarantor will help you get around this problem.
How much you are awarded will vary as will the interest rates that you need to pay so it does make sense to spend time contacting various companies for private loans as well as finding out how much money you will be offered via federal loans before you start applying. All of this can generally be done online making it very easy, but when you are using a guarantor, then it will often take longer to find out if your application has been a success due to the fact they will have to check out their background as well as your own.
So that is how you can still get a student loan even when you have bad credit and there is actually nothing complex or difficult about it so all you need to do is think about which option you would like to take and apply for the money. The amount you will be awarded may differ from those people with a good credit rating, but at least you can still get some kind of funding whereas prior to reading this, you may have believed that it was not possible and resigned yourself to not getting a loan at any point.