• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Financial Wellness

You are here: Home / Credit Score / Student Loans for Parents with Bad Credit | Know Your Options

Student Loans for Parents with Bad Credit | Know Your Options

Student Loans for Parents with Bad Credit | Know Your Options

September 15, 2017 by Katie Bentley

There are a lot of student loans for parents with bad credit.

Parents with bad credit who want to help their children apply for a student loan may have a hard time finding the best option.

But there’s no need to worry as there are several options for parents with bad credit to obtain student loans.

Find out below and get the best solution suited for you.

Getting Student Loans for Parents with Bad Credit

1. Maximize Your Federal Loans

The best option is federal student loans.

The reason is that their interest rates are the lowest and they have repayment plans which are very flexible.

Among the federal student loans are the Stafford loan and the Perkins loan.

These two have 5.05% and 6.8% fixed interest rates respectively.

The parent’s credit history is not required to be eligible for the federal student loans, and the same goes for the students.

As for parents, you can apply for the federal PLUS loan.

In this program, parents are allowed to borrow on behalf of their child who’s an undergraduate, even if credit is denied by other lenders.

2. Look Into Private Student Loans

Look Into Private Student Loans | Student Loans for Parents with Bad Credit | Know Your Options

After exhausting all federal financial aid options, this would be the best time to consider applying for private student loans.

Some banks, however, may offer higher interests and require additional requirements compared to others.

You can opt to check interest rates and other offers available from different banks or institutions to get the best possible option for you.

3. Consider Getting a Co-Borrower

Consider Getting a Co-Borrower | Student Loans for Parents with Bad Credit | Know Your Options

You may ask one of your willing relatives or family members to back up your loan.

There are several education loans which offer loan options for parents along with a co-borrower.

This option is one of the best considering you’ll have access to unsecured and the best education loans available.

4. Opting for a Home Equity Loan

Opting for a Home Equity Loan | Student Loans for Parents with Bad Credit | Know Your Options

Having equity for the home can give the family an option for the lowest interest rate available for loans.

However, it would be advisable to improve your credit score since this is an important factor when it comes to equity loans.

Your home becomes the collateral of your loan in this option.

Weigh in the pros and cons of this option before jumping into a decision.

5. Explore Other Payment Options

A university and a college have a wide range of payment plans being offered.

You may consider exploring all these too and the majority of them don’t require a credit check.

Having these payment options will also help you out in dividing your loans so you don’t have to pay in one big bulk even before the student graduates.

For more about student loans for parents with bad credit, do watch this video from OWN:

If, however, you won’t be needing the loan right away, you can consider your options how to improve credit score instead.

Start reducing the levels of your debt and start making payments on-time.

Be consistent in working this out for several months.

Most likely, your options on getting student loans for parents with bad credit will come easy, even if you’ve had a rough start.

What other options on student loans for parents with bad credit can you recommend? Feel free to share your suggestions in the comments section below.

Up Next: Refinancing Student Loans | Things You Need to Know to Avoid Mistakes

Filed Under: Credit Score, Student Loans

Previous article: How to Improve Your Credit Score
Next Post: Student Loan Guide | Basic Things Borrowers Should Know

Primary Sidebar

Follow Us







RECENT ARTICLES

  • What is Chapter 11 Bankruptcy and How it May Protect BusinessesWhat is Chapter 11 Bankruptcy and How May It Protect Businesses?
    Chapter 11 bankruptcy isn’t uncommon, yet many fail to see its purpose. Most people have heard of Chapter 11 vs Chapter 7 liquidation, or even [...]
  • Personal Loans After Bankruptcy Discharge: Is This Possible?Personal Loans After Bankruptcy Discharge: Is This Possible?
    Applying for personal loans after a bankruptcy discharge? Getting approved may not be easy, but it still is possible. It will definitely require [...]
  • How to Stop A Student Loan Wage GarnishmentHow to Stop A Student Loan Wage Garnishment
    Student loan wage garnishment is the last thing you want to experience while paying student debts. Monthly wage deductions could ruin your spending [...]
  • Don’t Miss These Posts On Financial Wellness..
    Here’s what happened on Financial Wellness 1. How to Start Investing in Stocks Even With Debt If you’re in debt, then you might be afraid [...]
  • Credit Repair Credit Cards: Learn to Rebuild Your CreditCredit Repair Credit Cards: Learn to Rebuild Your Credit
    Trashing your credit score is so much easier than building a solid credit rating. It’s no wonder so many people seek out credit repair credit [...]
Instagram did not return a 200.

Connect With Us On Instagram!

Footer

Financial Wellness

© 2021
FinancialWellness.org
All rights reserved

  • Privacy Policy
  • Terms and Conditions
  • Contact Us

This Copyrighted Material may not be republished without express permission. The information presented here is for general educational purposes only. Material Connection Disclosure: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to/from this page and may receive commissions from purchases you make on subsequent websites. You should not rely solely on information contained on this page to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

FOLLOW US

  • Facebook
  • Twitter
  • Instagram