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No Credit Check Student Loans

Due to the fact that they have not had a chance to develop a credit history, students tend not to have great credit. The cash flow of students is also usually lacking, causing them to have to seek financing in order to pay for school. I, myself, wondered if and how I would ever be able to pay for school. When I though about credit, I knew I did not have a credit history from which I could have build a decent credit score.

Thankfully, students are privy to many financing options. You will find the information you need to know what options are available to people in various financial situations.

First, let’s look at Subsidized Stafford Loans.

Basically, this is a loan which requires absolutely no credit. This type of loan was developed by the government and the value is backed by the government. In other words, students do not have to worry about their credit score when applying for this type of loan. Your credit isn’t even checked, because the government takes responsibility of the debt if you fail to pay.

The interest rate of these loans is not decided on based on your credit score.

Unlike any other from of loan, the government pays the interest on any Subsidized Stafford Loan for the entire time you are in school. Due to the government paying the interest on the loan while you are in school, you do not have to make a payment while enrolled. As a matter of fact, these interest payments are continued for six months after you stop attending school.

This type of loan beats every other loan in the area of savings based on interest. You can save hundreds or even thousands of dollars by the government making all interest payments for you for four to eight years.

Now, let’s talk about Unsubsidized Stafford Loans.

The only difference between Subsidized Stafford Loans and Unsubsidized Stafford Loans it that in the unsubsidized version, the government does not pay any interest payments for you.

As with the subsidized version, the government stands behind these loans and there is no credit checks. You will not be able to find a loan more simple than the Stafford loans if you have no credit as a student. Credit is not even taken into consideration for either type of Stafford loans.

A form called the FAFSA is used to determine if and how much of a loan you qualify for. Therefore, be sure to fill one out if you are looking at this form of financing. You can either fill this form out on the internet or get a paper copy, to fill out and send in, from your school’s financial aid office. The approval is based on one thing, need. Basically, if your income shows that you need the loan you will get it. Very few things can stop you from getting financing this way. If your income or that of your parents is high enough that the government deems you can pay for school yourself, you may face a problem. You may also run into a problem if you have previously defaulted on a Stafford loan.

Another option you have for financing are Perkins Loans.

This is yet another loan backed by the government, thus requires no credit history. These are also based on need. However, more need is required for this type of loan as compared to Stafford loans. Perkins loans are only provided to students in extreme financial need.

We also need to look at Loans That Do Require A Credit Check.

Basically, a credit check will be preformed for almost all private student loans. If you are a student with not so good credit, you will have to find a co-signer in order to be granted this type of loan. Many people feel student loans are “worth the cause,” so they are more willing to co-sign for this type of loan than any other type of loan. It is almost impossible to find a private student loan that does not require a credit check.

Almost all lenders providing private student loans require a credit check.

Therefore, it is best to stick with federal loan options, unless you have maxed them out. If you are careful to build a strong credit history while you go to school for the first year or two, it will be easy for you to get a private loan, if the need should arise.

About The Author

Ben Todd

Ben was a seriously broke graduate student with bad credit who after finding himself rejected for any sort of credit card or loan for most of his adult life, finally decided to get his financial life in order. 'He spent several years reading as many financial advice books and blogs as he could.And suprisingly, Ben found he actually LIKED the topic of personal finance; after fixing his own finances, starting his own successful work at home website business, and using his earnings to get out of debt, created to help others do likewise!

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