Government student loan programs, including the Stafford Loan and Perkins programs, are awarded based on need and not credit score eligibility, notes Debt.org. There are also private lenders that offer options for students with bad credit.
The Federal Application for Student Aid, or FAFSA, is used by financial aid offices in accredited U.S. institutions of higher learning. This form offers students the ability to apply for all federally funded programs based on income eligibility. These government student aid programs do not consider credit ratings in their decision-making and loan-granting processes, reports Debt.org.
In addition to the FAFSA application, private lenders and banks dealing in student loans offer higher interest loans for students with poor or bad credit, notes Debt.org. These loans may have additional terms and carry monthly payment requirements as opposed to federal student loans that do not require payment until after graduation. A co-signer may be required for a student to receive a loan from a private lender. Reapplying for student loans is necessary if the FAFSA method of obtaining aid is used. If private loans are utilized, the ideal option is to request a loan for the full amount of the tuition rather than attempting to reapply each academic year.