Government Student Loan Program
Government programs will lend to students, regardless of their credit. And for the parents, there are available student loans for bad credit. The Parent Loans for Undergraduate Students(PLUS) program is made for people with shaky credit.

PLUS loans are designed to cover any difference between college costs and any other aid received. And unlike loans made to students, they don't have set borrowing limits. PLUS loans also have lenient credit standards. Your credit history isn't a factor, only how you're currently handling your bills is important.

Whether it's the government or a private lender making the loan, what you need to show is that your bills are current. A loan in default or an account 90 days delinquent, will get your application rejected. But simply keep all your current bills paid and you'll be fine.

Private Student Loans
Unlike the federal government, private lenders can't make you pay off a loan if you decide to default or file bankruptcy. So credit history is a factor in granting a loan. But when a lender is making a loan to a student, he also looks at the future earnings potential. For example, if a student is pursuing medicine, a so-so credit record would be more acceptable than if the student was getting a fine arts degree.

Student loans for bad credit records can usually be obtained, but at the price of higher interest rates and possibly a shorter loan length. One thing to be aware of is that not all credit reporting agencies necessarily show the same credit record. Of the three major credit bureaus, one may show a better record than the others. And if you find a lender who uses the same bureau, you'll improve your chances.

If you have trouble getting a loan from a private lender due to poor credit, consider getting a cosigner. This can not only get a loan with a lower interest rate, but possibly lower fees too. In fact, even if your credit is good enough, the cost savings available may encourage a parent to be a cosigner.