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No Credit Student Loan - How to Get the Best No Credit Student Loan

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A no credit student loan is a type of loan that a college student can obtain without having a well developed credit history. Because many college students have not yet handled credit cards, obtained auto loans, or have purchased a home, many students have built very little credit. This can make it difficult to obtain a beneficial student loan, unless applying for one that does not award loans based on one’s credit history.

When applying for a no credit student loan, a student will not be required to submit to a credit check before receiving their loan. This saves students with little or bad credit from receiving a loan with a very high interest rate or other undesirable terms. However, many students are unsure of where to find these loans and how to begin the application process.

The most common no credit student loans are those that are awarded by the state or federal government. The two most popular types of federal loans that do not require a credit check are Federal Stafford Loans and Federal Perkins Loans. A federal Stafford loan is a no credit student loan that offers students low interest rates, is available to both undergraduate and graduate students, and is very easy to qualify for. Additionally, there are two types of Stafford Loans, subsidized and unsubsidized.

Subsidized means that while a student is in school, the government will pay the interest on a Federal Stafford Loan up until six months after graduation. These loans are given to low income students, on an as needed basis. However, an unsubsidized Stafford Loan will require that a student repay the interest that is earned on the loan from the moment it was awarded. Fortunately, students can choose not to make these interest payments until six months after graduation. Unsubsidized Stafford loans are given to a larger number of students and do not require that the student be from a low income situation.

A Federal Perkins Loan is another low interest loan that does not require a student to pay interest while they are attending school. Federal Perkins Loans offer a 5% interest rate during a ten year repayment period, that begins 10 months after graduating or after a borrower discontinues taking classes as a full or half time student. Perkins loans do not require a credit check, but are given to students that are determined to be in significant financial need.

To apply for a no credit student loan, a college student must first fill out a Free Application for Federal Student Aid or FAFSA. The FAFSA form will inquire about a student’s financial situation and will help determine whether they are eligible to receive financial aid. Financial aid refers to government grants that a student will not have to pay back, unlike loans, which require repayment.

Once a student’s FAFSA has been reviewed, he or she will be notified as to whether they are eligible to receive financial aid. Even if a student does not receive financial aid, they will need to have submitted this form before applying for a Federal Perkins or Stafford Loan. Students with the greatest financial need will be eligible to received a Federal Perkins Loan, while students with a lesser financial need will be eligible to receive a subsidized Federal Stafford loan. However, even if a student does not come from a low income family, he or she may still be eligible to receive a unsubsidized Federal Stafford Loan.

Fortunately, even if a student does not receive the amount they need from federal loans, there are still some no credit student loan options. Students may choose to apply with private financial institutions to see if they would qualify for a student loan. While most of these lenders will check a student’s credit, they may still be eligible to receive a loan with little or bad credit as long as they have a financially responsible co-signer. Therefore, when trying to obtain a no credit student loan, college students should be sure to explore all of their options, in order to make their education affordable.

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