Rising costs of education, downward trend in the job market, fragility in the economy are all to blame for the bad credit student loans.
Obtaining a loan
So how do you go obtaining one? Your best option will be to provide a collateral or co-signer. The co-signer helps you repay the loan incase of default. You might not like this but the bank finds this a lesser risk. But there is the federal financial aid in which the government gives you regardless of a mismanaged loan as it considers you as not yet had an opportunity to build on their credit. It comes inform of grants or loans.
As good as this may be, there are penalties you pay when you obtain a private student loan for bad credit. One being your interest rate will be higher, you repay some of the loan while you are in college, and you may not obtain the entire loan amount you need.