Student Loans and Financial Aid
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If you have bad credit due are you still eligible for student loans?


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2011-07-20 18:40:13
2011-07-20 18:40:13

It depends on how old you are, and if this is your first degree. In the UK if you are a school leaver and you have some bad credit you would be entitled to a student loan. However if you are a mature student they may not grant you one.

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If your loans are in a Deferment, then they were never in a Default status, they may have been delinquent. You are not eligible for Deferment while loans are Default. So to answer your question, yes you are eligible to take out additional loans if you are in a Deferment.

In the U.S., if you are in Default on the loans then you will not be eligible to get additional loans. If you are not requesting financial aid, then you can attend.

OK, I cannot agree. I have about $39,000 in student loans and before I was in repayment period my loans showed up on my credit report but showed deferred status with a date. I have now graduated and I still have a six month grace period. Your student loans are still factored into your overall credit score and they affect your credit score negatively only if they are not paid on time.AnswerNOT MUCH, AS LONG AS YOU PAY YOUR STUDENT LOANS ON-TIME AFTER YOUR GRACE PERIOD (WHILE ATTENDING COLLEGE) THEN YOU SHOULD BE FINE. If you're still a student, student loans do not show up on a credit report at all. They only appear after you have graduated, withdrawn, dropped-out, etc. and the repayment starts.11/01/2010 I will have to disagree with the above answer. Student loans show up on your credit report before you graduate-how do I know this?-Well because I am a student with loans and those loans have showed up on my credit report under "deferred"-they have actually helped my credit score, BUT they will HURT it if and ONLY IF, when it is time to repay I default. I agree with the 1st answer and not the 2nd. Maybe times have changed since the 2nd person answered this question or even has knowledge of the credit score system in conjunction with student loans. These are government backed up student loans that I am referring to, NOT bank student loans.

Most student loans are interest free when you are still attending college, then increase from there. It really depends on your credit score to what interest rates you qualify for.

No, by definition, private student loans are not government student loans. Federal student loans are guaranteed by the US, govt, and the govt sets the interest rates and determine the policies around loan limits and repayment. Private student loans are provided by banks, credit unions and other financial institutions such as Sallie Mae. Because they are not guaranteed, they are much higher risk to the lenders, so they are typically credit based. This means interest rates are variable, and determined by the borrower's credit history. Because most student's haven't had a change to acquire good credit, having a co-signer with good credit almost always improves the interest rate. Banks don't have any collateral for student loans.

yes, the private or federally guaranteed student loans will show up on your credit report. If you are delinquent or in default on your loans, you can get help with consolidating the loans at The loans will show up on your credit report, even if they are still designated as deferred. You will not owe anything until roughly 6 months after you graduate, and the loan status will change to active once repayment begins.

There are two different answers, depending on whether a student is looking for relief from a loan or a person is looking for relief from student loans, which are not generally due and payable while they are still students. Student loan relief is available directly from the lender in the form of consolidation or hardship deferment, while for other types of loans a student may be eligible for refinance, deferment by paying interest only or consumer credit counseling depending on the type of loan, the lender, their credit score and their income level.

Only if one has a felony drug conviction may they not qualify for student loans. Otherwise, with good credit or a cosigner you can still qualify. If you want to know more, go here:

Yes, but the student loans don't get cancelled: you still have to pay those.

No, if your current loans are being garnished, then you are in default. Student loan holders that are in default are not eligible to receive additional loans. If you consolidate your defaulted loans, you can get out of the garnishment and receive an income sensitive repayment option. It will allow you to pay an amount that your budget can afford. Payments can be as low as $0, depending on your income and dependants. Additionally, you are eligible for more student loans after consolidation. If you go back to school, you can still put all the loans in Deferment and not pay on them. You can get help with consolidating your defaulted loans at

Yes, student loans can not be discharged in bankruptcy. You can consolidate your loans and get a smaller payment.

Yes. You may have to pay a higher fee, but there is still hopes of you getting approved - especially if you have a good business plan.

IntroductionStudent loan debt in the United States surpassed credit card debt in 2010, and the average student now graduates with over $20,000 in loans. Consolidation offers these graduates the opportunity to make one loan payment a month, and pay back their loans on an extended term with a fixed interest rateThere are two types of education loan in the United States: federal and private. Private loans are not eligible for consolidation under the federal loan consolidation program, but may be consolidated through private education lenders. Also, PLUS loans taken out by a student's parents are not eligible for consolidation under the student's name.If you do not know whether your student loans are federal or private loans, consult the National Student Loan Data System web site at . NSLDS only shows federal student loans, so any loans that do not show up on this web site are private loans.EligibilityTo be eligible to consolidate your student loans, you must have:A minimum amount of eligible loans (typically around $10,000)Multiple lendersLoans that are not on "in school" statusAt least one loan that is not part of a previous consolidationIndividual loan providers may have additional requirements. (For instance, many loan providers do not consolidate loans in default.) If you meet these requirements, contact any federal student loan lender to see about a consolidation.BenefitsOnce your loans are consolidated, your interest rate will not change each July as happens with non-consolidated federal loans. Consolidation loans are still eligible for deferments and forbearances like other federal student loans, so, if you go back to school or find yourself in financial hardship, for instance, your loan payments can be temporarily suspended.Consolidation loans are also eligible for extended repayment plans just as ordinary federal loans are. Because the consolidation process pays off your old loans and issues an entirely new loan, the repayment term is reset. This means you can end up with a lower monthly payment by consolidating.Finally, you get the convenience of making a single payments for all your education loans.

There are different ways that you can still get a student loan even if you have a bad credit history. These include getting a co-signer for the loan or you could contact banks and lenders and explain your situation to them.

If you have been looking for ways to pay for college, you have probably thought about taking out a few student loans. However, you might have found that a lot of student loans require that you have either a high credit score or a cosigner. If you don't have credit or if your credit is bad and if you don't know anyone who is willing to cosign with you for a student loan, you might be unsure of if you will ever be able to pay for college. Fortunately, there are ways to get student loans without a cosigner. First of all, you should consider talking to a financial aid adviser about taking out a federal student loan. Federal student loans allow students to borrow money for school without a cosigner, and they do not even look at your credit score, which means you will still qualify if you have bad credit or if you don't have credit at all. Along with applying for student loans, you can also apply for federal grants. Just like loans, these grants will provide you with the money that you need to pay for college, but you won't have to worry about paying them back in the future. Secondly, you could consider working on your credit score so that you won't need a cosigner in order to get a student loan. Although you might think it will be impossible to boost your credit score, it might be easier than you think. By getting a cell phone or cable bill in your name and paying it on time or getting a credit card and using and paying for it responsibly, you can boost your credit score, and this can help you qualify for student loans without the need for a cosigner. Lastly, you can consider looking for student loans that will allow students with bad credit to apply, even without a cosigner. Although this might be more difficult, a little patience might help you find a lender who is actually willing to give you a chance.

No. and Yes. The default on your prior student loan must be addressed and the loan rehabilitated before you're eligible for more student loans. The bankruptcy would only affect you if you had a defaulted student loan that was written off in the bankruptcy. Otherwise, bankruptcy doesn't prohibit you from applying and received federal student loans. Student loans are NOT automatically written off in bankruptcy and take extra steps with the courts.

Let me start by sending my condolences for the loss of your father. If the student loans were taken out by your father as PLUS loans, then the loans will be forgiven by the government. If you took out the student loans under your SS#, then you still have to pay on the loans, even if your father cosigned on them.

You can still get student loans half way through the semester. However, student loans are not disbursed until after the semester has ended, unless it is from a private institution.

Eligibility for Federal Stafford loans are not based on your credit so yes, it is possible to get a student loan even with "frightening" credit. The exception to that is if you have previously defaulted or are significantly past due on a previous student loan. Even in this case, there are options to clear this up pretty quickly, so you may continue your schooling. Finally, most private student loans are credit-based so for those, you will at the very least need a co-signer. Federal loans limits are too low. The "non-credit" based loans like Stafford need to raise their limits to approx. $10,000-$15,000 per year. Then a student has a chance to fully fund their own college tuition at a State College without help from parents. It is every child's right to go to at least a State college of their choice.

Creditors can make their own determination in how to evaluate deferred student loans on your credit report. Generally, deferred payments are much better then delinquent payments. Debts that must be repaid in the future are still debts though, and the amount of debt you have may effect whether or not you are granted additional credit.

Yes. Those who are already finished or out of school can apply for a student loan consolidation. If you're still in school but you want to start with your repayment, then you may apply for consolidation as well. Answer: {| |- | Yes. Even if you consolidate your student loans, you can still defer your payments. Standard deferment and forbearance options are core attributes of your student loan and are not lost when you consolidate student loans. |}

One can usually get student loans after bankruptcy so long as they meet the other eligibility requirements for those loans. Public policy mandates that a "well-educated" society is a "better" society, so for that reason student loans are protected from bankruptcy so lenders will freely give student loans without fear of being filed on. And, since student loans are excepted from discharge in bankruptcy, they're not generally too skittish about someone who has filed before. I have had several clients ask me that same question, and I tell them what I said above and I ask them to let me know if they ever do have a problem getting a student loan due to bankruptcy. So far, no one has ever called me saying the bankruptcy caused them any problems in getting student loans... for what it's worth. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. that is not necessarily true. i filed bankruptcy and have had a steady job and even paid off a car loan that was applied for after the bankruptcy and I still cant get student loans. When you file for bankruptcy, you're still eligible for government loans, but not for private loans. These are the two basic types of loans. You should be able to qualify for government loans because these loans are based on need rather than credit

Does "in grace" mean in deferment? Deferred student loans do affect your debt-to-income ratio. Even in deferment they are factored into how much you owe. Many current and former students do not take the responsibility to keep their loan companies notified of their enrollment status, thinking that their financer will somehow just know that they are still in school. This more than any other factor causes credit problems on student loans. Anytime you open any kind of credit account, there is generally an inquiry which CAN affect your credit score. There is also a "hit" in the risk indicator of having a new account. Those factors are overcome quickly and as long as you pay the new, consolidated, account on time and keep your status updated; it should have little affect on your credit to consolidate.

If you are a Canadian citizen but have bad credit there are a number of companies who will still give you might give you a loan including Drivetime, 1 Month Loans, Fast Access and Bad Credit Canada Loans.

Although you have bad credit there are still subsidized and unsubsidized government loans that are available at low interest rates. Please refer to your schools financial assistance office.

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