Are Bad Credit Private Student Loans Safe Alternatives For Aspiring
Are Bad Credit Private Student Loans Any Good?
Acquiring financing for your college education
can be somewhat if a hassle if you are dealing with less than a perfect credit rating.
Could the answer to your dilemma be Bad Credit Private Student Loans? Some say, “Yes!”
While others caution against taking out any private student loans.
In this session we are going to take a look at Bad Credit Private Student Loans, to give you an idea if they are
right for you.
The design or impetus of bad credit private student loans was to assist individuals who didn’t find educational
funding through scholarships, grants or work study programs and other viable sources… who also don’t have high
As the name suggests, these educational loans are targeted at a specific group of individuals.
Is That a Warning Sign?
Here is our first caveat; please heed this warning with all
Aspiring students should only consider private student loans after exhausting all of the other available
Financial Aid options.
To put it another way, bad credit private student loans should be your absolute last option. The rule of thumb
is, aspiring students should only consider private student loans as a last resort.
There should be a progressional path to acquiring money for college. The Financial
Aid path should always start with family funds, scholarships and
grants and progress forward. Smart
individuals will pursue scholarships and grants with all vim and vigor.
You would be amazed at the number of possibilities that are available when it comes to money for college. The
great thing about these sources is that you don’t have to pay the money back because they are not loans; they are
After scholarships and grants and family contributions, aspiring students should look at the possibility of
participating in one of the many college work programs to pay for their schooling. One option to find out what’s
available is to file a FAFSA. That is the
acronym for Free Application for Federal Student Aid. By doing so you can quickly learn about the numerous
work-study programs, grants and other forms of student aid.
The reason we advise against utilizing private student loans, particularly bad credit private student loans is
because of what takes place after you have signed on the dotted line. In a typical bait and switch type tactic,
many private lenders advertise irresistible low rates. However, the rates increase dramatically once the repayment
time clock starts ticking.
People who don’t pull out their calculators and who fail or refuse to read the fine print of these bad credit
private student loans usually end up with a rude awakening one the payment grace period is over. Additionally, the
extraneous fees conjured up and leveled by some private lenders can also significantly increase the cost of these
Another caveat? Yes another one! In reference to those extraneous fees, the lenders who claim their private student loans are fee less should be scrutinized extra carefully. The
lenders who make that claim, almost always ingeniously inject their fees into the interest rate once the loan exits
the payment grace period and enters the phase where the borrower starts to make payments.
Remember these key points; once you take out private student loans, you are stuck. Meaning, once you sign on the
dotted line and take receipt of the funds, there will be no debt relief. With Federal Student Loans, you have the
option of Deferment and Forbearance. Not with private student loans!
You also cannot file bankruptcy to clear up any student loan debt. This is
what we mean when we say, “You are stuck!” That is why one must be cautious and carefully consider all of their
Financial Aid options prior to considering Bad Credit Private Student Loans.
In the event that you must take out a Bad Credit Private Student Loan, be sure to read all of the fine print.
Someone once said, “The bold print giveth but the small print taketh away.” Whoever said that, knew and understood
the stealthiness of legal contracts. Bad Credit Private Student Loan contracts are rift with bold print that gives
the borrowers a sense of confidence, albeit a false one.
And they are also rift with small print that strips away any benefits or advantages seemingly provided by the
bold print. Again, use jurisprudence when considering this route as a potential route to fund your college
education. Bad Credit Private Student Loans should always be your last viable option.
Brad Matheson is a professional Financial Consultant who specializes in helping businesses and individuals
resolve their debt issues. He believes that all debt problems can be solved with the right debt advice and aspires
to help Americans learn all of their debt options and exercise all of their rights. Says, Matheson, “Don't allow
the Student Loan Debt crisis or a Defaulted Student Loan to hinder or block your
career aspirations or stymie your financial dreams, There is Student Loan Help