Best student loans for bad credit in August 2021 – Forbes Advisor
Funding U does not grant loans based on credit history and does not require student borrowers to use a co-signer. Borrowers are eligible for a loan based on year of study, educational and work history, current courses, prospects for graduation, and likely future income. But it doesn’t lend in all states, and the company says its lowest rates are only for senior students with the best academic results.
Additionally, although Funding U’s loan limits are relatively low, private loans should be used sparingly, so ideally borrowers will not need them to fund larger funding gaps.
Term of the loan: 10 years
Loan amounts available: $ 3,000 to $ 10,000 per year ($ 50,000 per student in total)
Eligibility: Students must meet GPA requirements and attend colleges that meet certain six-year graduation rate thresholds, depending on the student’s academic year. To be eligible, first year students must have a minimum GPA of 3.5 in high school, second year students must have a minimum GPA of 3.0 in college, juniors must have a minimum GPA of 2.75 and seniors must have a minimum average of 2.5.
Note that only borrowers from these states can apply: Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New Mexico, New York , North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia and Wisconsin.
Opt-out options: Up to 24 months of forbearance allowed in 90 day increments. Borrowers have to pay $ 30 per month when in forbearance, which is less generous than the no-payment forbearance offered by other lenders. But this policy helps borrowers avoid earning large interest.