In most cases if you have bad credit you will find it difficult to get a loan. However when looking for money to pay for your education that does not need to be a concern. There are many loan programs available for students that give no consideration to credit history. In fact they do not even perform a credit check.

Pell Grants are one of the oldest, and disbursing them is based primarily on the economic status of the grantee. If the student and his or her parents are a low-income family, Pell Grants are almost automatic. Almost. As with any form of Federal aid, that economic situation has to be demonstrated through supplying documentation.

Those in charge of disbursing Pell Grants use a number, called EFC (Expected Family Contribution), to decide whether to give the money. Other factors also come into play (such as the cost of tuition and more), providing a rounded picture.

The grant is a gift, not a loan and is currently a maximum of $4,050 per year. That may seem like a substantial sum, and it certainly helps a great deal. But with annual tuition upwards of $5,000-$10,000 or more it doesn't cover everything.

Most students, therefore, will want to seek a loan in addition to a Pell Grant to fund their education. There are many that are similarly need-based. One of the most common are Stafford Loans, which come in two types.

A student does not need to begin to repay a Stafford Loan until six months after he has completed his education provided that he continues to be a full time student. The government covers any interest on the loan until repayment begins so they do not have to worry about interest accruing during their years of study.

Other loans that are not subsidized, or that the government does not cover the interest, do accrue interest from the start of the loan. You can begin repayment of these loans right away to keep the amount of interest you pay very low. Or you can defer repayment until the end of your education. The second option will cost you quite a bit more in interest payments. Most of these loans carry very low interest rates, around 4% or 5% so if you begin repayment right away they really aren't that expensive.

Almost every student will qualify for unsubsidized student loans. That makes them very appealing in conjunction with other financing. Other financing is almost always necessary because an unsubsidized loan will only cover one quarter to one half of the total cost of tuition.