How to Find Bad Credit Student Loans
It is not uncommon for nursing students with poor credit histories to seek bad credit student loans. Traditional loan opportunities may be beyond the reach of these students. Loans that are approved for individuals with bad credit will likely have higher interest rates. Fortunately, there are resources available that help nursing students get the education they need regardless of their credit history.
So called normal bad credit solutions that are often advertised that help fix bad credit like credit counseling, eliminating or erasing credit records and credit card debt consolidation; may just take too long to be effective for some nursing school applicants. Following are examples of different types of loan programs for students with poor credit.
Multiple federal loan programs are available for nursing students who have bad credit but need financial assistance to continue their education. Federal student loan approval is not contingent upon a credit check. Therefore if you do not have good credit you can still receive these loans. In fact, the less disposable money you have, the greater your chances of obtaining federal student loans. The primary federal student loan program is the Stafford student loan.
Stafford Subsidized Student Loan
Nursing students who receive this loan are obligated to begin paying back within six months of graduating from college. This should give nursing school graduates sufficient time to obtain a job. Even if you receive a temporary deferment, you will still have to pay back the loan. Bankruptcy does not eliminate your loan responsibility because student loans subsidized by the Federal government are not covered by bankruptcy laws. The terms of the loan include repayment within ten years. Fortunately, you can take up to twenty years to pay back your Stafford subsidized student loan if you can prove financial hardship. And interest is not accruing on your loan until you graduate from college and your repayment plan kicks in. To apply for this loan, you will need to complete the Free Application for Federal Student Aid (FAFSA) and submit it to your nursing school for consideration.
Stafford Unsubsidized Student Loan
This loan is similar to the subsidized version in most respects including repayment terms. However, this loan begins to accrue interest on the day you receive the loan. This means that you will end up paying more, especially the longer you are in school, than if you had a subsidized loan. If you wait until the last minute to apply for financial aid, you risk receiving an unsubsidized loan since there are limits to the amount of money available for Federal student loans. You apply for this loan in the same way you apply for the subsidized loan.
Educational Institute Student Loans
In addition to the loans already described, the college you attend may offer additional loans to students who have limited financial opportunities to attend school. The interest on loans for students with bad credit may be higher. There may be stricter payback requirements as well. To learn about student loan opportunities, contact your school’s financial aid office.
Employer-Sponsored Student Loans
Local healthcare or other employers who offer student loans to employees and area residents may allow individuals with poor credit to apply for loans. You can learn more by contacting the human resources department of major employers in your community who administer educational scholarship and loan programs. Following is an example of an employer that offers educational loans to students with bad credit.
Santa Barbara Cottage Hospital Foundation
The Foundation offers loans to nursing students enrolled in a two-year or four-year nursing program. Students can also be pursuing a career as a licensed vocational nurse. Loans are available to Hospital employees as well as students who graduated from high schools in Santa Barbara, San Luis Obispo or Ventura counties in California. Loans are made based on academic potential, future goals, financial need, and letters of recommendation. Loans are not credit-based so students with poor credit can apply to the Foundation for financial assistance. Loan amounts vary. Applications are due to the Foundation by July and December annually. For loan applications, students can contact the Foundation at P.O. Box 689, Santa Barbara, CA 93102.
Community-Based Student Loans
Community resources are available to help students with bad credit get student loans. Healthcare nonprofit organizations may offer loans to community residents and employees. But it is foundations that offer the best loan opportunities for students with bad credit. If you need this type of loan, consider contacting a local foundation that provides loans to area residents. The following are two examples of funders and bad credit student loan lenders that allow students who have bad credit to apply for education loans.
C. L. Kelly Charitable Trust
The Trust awards education loans to nursing students who live in Halifax County, North Carolina. Students with bad credit can apply for loans from the Trust. Loan amounts vary and there is no deadline for applications. For loan applications, contact the Trust, c/o Comerica Bank, P.O. Box 75000, MC 3302, Detroit, MI 48275. Completed applications are to be submitted to the Trust at 130 South Franklin, Rocky Mount, NC 27802. Nursing students who have questions can call (252) 467-4743.
The Scholarship Foundation of St. Louis
Nursing students who live in the St. Louis metropolitan area can apply to the Foundation for interest-free loans for nursing school. These loans are for students who do not have sufficient financial means to go to continue their education. Students with bad credit are eligible to apply. Loans are made based on academic scores, the Student Aid Report, personal essay, and letters of recommendation. The Foundation has two deadlines: mid-April and mid-November annually. Students can obtain applications from the Foundation at 8215 Clayton Road, St. Louis, MO 63117 or by calling (314) 725-7990.
Very bad credit or just poor credit should not stop you from pursuing a nursing degree when you can get bad credit student loans to pay for your education. These nursing loans are available from multiple sources and are help students make a fresh start even if they have a bad credit history.