When you have a bad credit then it is always a concern before you plan to go to a college. As this bad credit may be a hurdle for getting you financial aid for your education. To find a student loan with excellent interest rates is easier only if you have a good credit rating whereas with bad credit student loan aid is possible but you may be charged higher interest rates.

The most popular US Department of Education loan is the Stafford loan. Stafford loans do not consider the credit rating as qualifying factor as here it is assumed that most applicants will be going to college straight from high school thus they will not have a credit rating. Similar qualifying factors are there for the Perkins loans as these federal loans are specially designed for the neediest students. While obtaining such loans a bad credit would be an obstacle if previously you have ever defaulted on federal student loan. 

It is possible to get bad credit student loans if your parents have a better credit record than you. Your parents can go for a PLUS loan which is a federal loan only granted to parents and not to the student. US Department of Education student loans (like Stafford and Perkins loans) assume that the parents will pay for a certain amount of their children’s schooling and therefore PLUS loans are advanced to the parents to cover the amount that the parent is obligated to pay for the cost of their child’s college. 

It is always a good option to obtain federal bad credit student loans as these federal loans are particularly designed to aid students for an easier education. Even their qualifying terms are much easier than those of several other lenders like banks and several other financial institutions. But in case if you are incapable of availing a US Department of Education student loan then you may have to go for a private loan. For private loan many things are to be considered. Suppose you are plan to graduate in a field where the earning potential is high such as like law or medicine in that case private lenders may provide you with a bad credit student loan without much difficulty. 

Those students who find it incredibly difficult to repay the borrowed loan amount then they can opt for student loan consolidation. Still if you have a bad credit in your name as it will not be an obstacle in consolidating your loans. These student loan consolidation programs are for those students who are delinquent on their loan repayments. Direct Consolidation loans and FFEL Consolidation loans can consolidate your all subsidized and unsubsidized FFEL and Direct Stafford Loans. And in the same way if you have unpaid Federal Perkins loans then they can also be consolidated. 
 
Parents who have to afford their ward’s education cost can obtain Direct and FFEL PLUS loans and later if they found themselves unable to repay the loan then they can simply go for loan consolidation. However, FFEL consolidation loans are given out on the basis of the borrower's credit history while Direct PLUS consolidation loans can be obtained by any credit checks.