Guide To No Credit Check Student Loans

Students generally don’t have awesome credit – they don’t have established credit history. They also don’t have a ton of money and paying for school isn’t easy. I remember trying to pay for school and wondering how I was going to make it work. I also remember thinking about credit and knowing that there’s no way I had a good credit score.

Fortunately, there are plenty of options out there for students. This guide can help you to learn about the options that you have and which ones are available for people in different situations.

Subsidized Stafford Loans

Stafford loans are the ultimate no credit student loans. The federal government created the program and backs the loans. What this means for you is that you don’t have to worry about your credit score. The government assumes the risk and your credit isn’t checked with this type of loan.

Interest rates for these loans also isn’t determined by your credit history.

The aspect of subsidized Stafford loans that sets them apart from every other type of loan is that the government pays your interest while you’re in school. This means that you don’t need to make any payments until after you finish your education, in fact you don’t make payments until six months after you finish your education.

If you look at the total interest that you pay for a loan, these loans will beat anything else, especially if you factor in four to eight years worth of no interest.

Unsubsidized Stafford Loans

The unsubsidized version of Stafford loans are a lot like the subsidized version, except the government doesn’t make your interest payments while you’re in school.

Qualifying for these loans doesn’t rely on credit because the federal government also backs these loans. Student loans with no credit don’t get much easier than Stafford loans. Your credit isn’t checked with either type of Stafford loans.

If you’re looking to get these loans, you’re going to need to fill out a document that’s called a FAFSA. You can fill out this form online or you can get one at the financial aid office at your school. Your approval will be based on need – if you need the loan you’ll be able to get it. There are only a few things that could stop you from getting the loan. If you or your parents have enough income to pay for your education it could cause a problem. Additionally, if you have defaulted on a student loan in the past it will cause a problem.

Perkins Loans

Perkins loans are also backed by the federal government, taking the credit approval process out of the equation. Perkins loans are also based on need and require more need than Stafford loans. Only students with extreme need will be approved for Perkins loans.

Loans That Do Require A Credit Check

Almost all private student loans will require a credit check. This means that you will have to find a cosigner if you’re a person that has less than perfect credit. People are usually liberal in agreeing to cosign for a student loans since it’s a very worthy cause. Private student loans with no credit are going to be very difficult to find.

Most loan companies that provide student loans will also check your credit.

Stick with the federal loan options until they run out. Work on building your credit for your first year or two that you’re in school and you’ll be able to get any loan you want at when it becomes necessary.