Fortunately, the Federal government doesn't disqualify loan applications due to bad credit or no credit history. Getting a student loan with bad credit is easy. Plus, bad credit applicants can enjoy a host of benefits. For example, even if you have a low credit score, bad credit loans for students include low fixed interest rates, grace period, deferment options, and more. When applying for financial aid, undergraduate and graduate students aren't required to obtain a Federal loan. In fact, some students choose a private student loan through a local bank or credit union. While these loans offer fast approvals and quick access to funds, they are not bad credit loans. To qualify, students must have a good credit history. Thus, private loans are harder to obtain. On the other hand, bad credit loans can help college students with low scores. These loans allow them a second chance, and the education received can help them make wiser financial decisions