How to Get a Student Loan With Bad Credit


Probability of getting any loan is mostly governed by your credit rating. If your credit score is not up to the mark, you are asked to pay substantially higher rates of interest or you won’t get a loan at all.


On approaching private lenders or even Parental Loans for Undergraduate Students or PLUS, your chances of getting loan and the interest payable are mainly determined by your credit score. Nevertheless, there are loans, particularly federal loans that don’t give that much importance to your credit score. Here’s the way telling you how to get a student loan with bad credit.

Filling Up FAFSA

For availing financial assistance offered by the federal government, students need to fill up FAFSA (Free Application for Federal Student Aid) application. Most schools and states insist on that application for qualifying for financial assistance.

You can fill up an online application for the purpose by going to However, before you proceed with filling up the application, gather the following documents:

  • Forms W-2 and copy of income tax return for the last year
  • Social security number
  • Number of your driving license
  • Statements from your bankers and investment records, if any
  • Non-U.S. citizens should have permanent resident card or foreign registration

You should pay particular attention to the dates stipulated for submission of application.

Receive Your Help Package

Grants offered by the federal government, like Stafford and Perkins loans and the rates of interest are decided on your financial requirements, without asking for any credit verification.

Having filed FAFSA application, you will be given an Expected Family Contribution (EFC) and Student Aid Report (SAR) plus the assistance packet from all the school that has accepted you. This packet tells you the amount of assistance to which you are entitled, enabling you to assess the difference between the expenses of the school and an estimated funding that your family needs to be providing for. The total package may comprise of grants and scholarships that you are not required to payback as well subsidized plus non-subsidized federal loans.

PLUS Loans

When talking about how to get a student loan with bad credit, plus loans need to be mentioned.

Though PLUS loans are basically federal student loans, they take consideration of credit score and thus can’t strictly be classified as student loans from the government. For availing PLUS loans, the parents of the student need to apply as the loan is offered on the basis of their credit score, though  professional students pursuing law, medicine or dentistry can qualify for this loan on their own, in which case student’s credit score is taken into consideration. However, PLUS loan doesn’t take assets or income in consideration.

In fact, PLUS loans don’t rely on credits score but on credit history. You are not approved on having a bad credit history, meaning taking more than 90 days for paying any debt, or not having paid any mortgage and medical bills despite getting an additional time of 180 days, or possessing any Title IV debt inside the last five years subjected to bankruptcy discharge, default determination, repossession, foreclosure, wage garnishment, tax lien or write-off.

PLUS loans are offered at the same terms and rate of interest to all the qualifying students. The loan starts accumulating interest from the date of disbursement, inclusive of disbursement fee amounting to four percent. The first installment falls due for payment sixty days after last payout. Under certain conditions payments can be delayed for limited periods.

The maximum amount available as PLUS loan equals the expense of student’s attendance, reduced by any other financial assistance that the student may be getting. In case the parent of a dependent student fails to borrow under PLUS loan, the undergrad gets entitled for other unsubsidized Stafford loans, carrying reduced fixed rate (6.8 percent as at the time of publication). Payment can be delayed when the student continues to be in school.

Now that you are informed of various options of how to get a student loan with bad credit, you can choose the one for which you are best qualified.


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