Best student loans for bad credit

Federal student loans are always the best option to take out when you have no or bad credit. If there is still a cost gap after taking out federal student loans, then consider taking out private student loans without worrying about your credit score requirements.

Current student loan interest rates for bad credit

The current interest rate for federal student loans is 4.53% for undergraduates, 6.08% for graduate students, and 7.08% for PLUS loans. For private student loans, the average interest rate is 9.66%.

Most students with bad credit will not be able to qualify for the lowest rates advertised by private lenders. However, there are a few private lenders that specialize in loans for students with bad credit. These lenders typically charge higher interest rates and fees than other private lenders.

Some of the best private student loan options for bad credit include:

• Wells Fargo Student Loan for Career and Community College Students: This loan is available to students who are enrolled in an eligible career and community college. Wells Fargo offers a fixed interest rate of 7.24% and a variable interest rate of 5.49% – 11.24%.
• Sallie Mae Smart Option Student Loan: This loan is available to undergraduate, graduate, and professional students. Sallie Mae offers a fixed interest rate of 7.08% and a variable interest rate of 5.74% – 11.85%.
• College Ave Student Loans: This lender offers loans to undergraduate and graduate students. College Ave has a fixed interest rate of 8.39% and a variable interest rate of 4.99% – 11.99%.

As you can see, there are a few private student loan options available for students with bad credit. However, these loans typically come with higher interest rates and fees. Federal student loans are always the best option to take out when you have no or bad credit. If there is still a cost gap after taking out federal student loans, then consider taking out private student loans without worrying about your credit score requirements.

Conclusion

Bad credit shouldn’t stop you from getting an education. There are plenty of options available to help you finance your education, even if you have bad credit. Federal student loans are always the best option to take out when you have no or bad credit. If there is still a cost gap after taking out federal student loans, then consider taking out private student loans without worrying about your credit score requirements.