If you have bad credit you're probably worried how you're going to pay for school. Interest rates for a credit based loan can be killer if you made some mistakes in the past with your money. However, if you're worried that you can't afford a student loan because of your bad credit, you're completely wrong! Yes, bad credit can make getting a loan hard, but there are many tools and ways to get non-credit based loans to pay for school.

Non-credit based student loans

Stafford Loans

The government provides many easy ways for people with bad credit to get a loan to pay for college. The Stafford loan is one of those ways. You get a get the Stafford loan in two types: subsidized and unsubsidized. The Stafford loan is probably the easiest way to get money if you're strapped for cash and you have bad credit. You can get a Stafford loan regardless if you're an undergraduate or a graduate in college.

You're probably wondering now: "What's the difference between a subsidized and a unsubsidized Stafford loan?"
  • Well, a subsidized Stafford loan is only for the most poor of students going to school. Just like any other loan, a Stafford loan has a principle and interest that it accrues monthly. Unlike other loans though, with a subsidized Stafford loan, the government will pay for the interest while you're in school so you don't have pay for it. When you graduate, you then pick up the tab on the principle and the accrued interest.
  • Unsubsidized loans, however, are just like any other loan. Unsubsidized Stafford loans are available to any student, regardless of their financial standing and can be great if you're looking for a non-credit based loan.
One bad thing about a Stafford loan, however, is that the amount awarded to students is actually pretty meager. Often, if you're really poor, you'll have to get other loans to be able to pay for school.

Perkins Loans

Besides the Stafford loan, you can also get the Perkins loan. Another non-credit based loan provided by the government, the Perkins loan is reserved only for the poorest and disadvantaged of students. If you're looking for a way to pay for school and the Stafford loan isn't enough for you, the Perkins loan may be exactly what you're looking for. The one major problem with it, just like the Stafford loan, is the amount of money you can get from it is rather small.


Besides these non-credit based loans provided by the government, if you're looking for ways to pay for school and you're a student with bad credit, there are scholarships and other programs available for you. One thing you should always remember is that you should never give up when looking for ways to pay for school. There will always be a way available for you to afford college, you just got to keep looking!