 TITLE: Can I Apply for FAFSA With Bad Credit? CONTENT: Alternative Ways to Pay for School\n----------------------------------\nOnce your FAFSA is processed, your school will send you an aid offer letter or upload it to the financial aid section of your student portal. It will indicate which options you qualify for and ask you to accept those you want.\nThe federal government suggests students first accept any free aid offers, such as scholarships and grants, since these don't require repayment. The next best option is \"earned aid,\" such as work-study programs that help you pay for school by working on campus. Then you can consider federal student loans, which have to be repaid with interest, but typically have lower interest rates and more favorable terms than private loans.\nStudents with the most financial need may qualify for subsidized federal loans, which don't start accruing interest until after you leave school. If you're not eligible for these, you may be offered unsubsidized federal loans, which start accruing interest immediately but still have low interest rates and generous repayment terms, including options for deferment and forbearance.\nIf the financial aid package you receive isn't enough to cover education costs, here are some other options to help you pay for higher education:\n*   **Apply for private student loans.** These loans are obtained through a private lender, such as a bank or student loan provider like Sallie Mae. The interest rates are usually higher than federal student loans and private loans don't come with government deferment or forgiveness programs. They also usually require a credit check, so students without any credit history will likely need a parent or guardian to cosign. Rather than opting for the first lender you encounter, it's wise to obtain quotes from several different lenders to make sure you're getting the best deal possible. Even a small difference in your interest rate can make a huge impact in how much money you spend over time.\n*   **Apply for other scholarships.** While the FAFSA puts you in the running for some scholarships, there are thousands of others offered by various businesses, organizations, states and local governments. Scour sites like Fastweb or Scholarships.com and apply to any you may be eligible for. Even if they're just for a few hundred dollars, they can add up—and unlike loans, they don't require repayment.\n*   **Get a part-time job****.** Just because you don't qualify for a federal work-study program doesn't mean you can't find a job elsewhere to help offset your college expenses. You could work in retail or at a restaurant near campus, deliver meals or groceries, or babysit for local families. END