It is a common incidence that students have no credit at all, and if they do, the credit score is usually less. At any point of time, no credit or less credit is far better than a bad credit. Nevertheless, in such situations, getting qualified for student loans is very difficult. Every private financial institution checks credit prior to sanctioning educational loans. In fact, many students end up taking loans with very high interest rates.
The good news is that there are student loans with no credit check. There are several types of student loans that do not require credit check. In most cases, no credit check student loans are federal loans. Going through federal routes for getting student loans is the best way, as they charge a very low-interest rate and are long-term. Some of the popular options for securing student loans with no credit check are as follows.
Federal Stafford Loan
- Federal Stafford loan is one of the best options for these loans.
- With Stafford loans, you have the flexibility to repay the loan amount within a grace period of six months after you earn your graduate degree.
- For obtaining this loan, you need to fill up FAFSA (Free Application for Federal Student Aid) form. All undergraduate and graduate students can apply for this loan.
- There are two types of Stafford loans, namely, subsidized and unsubsidized.
- The former is designed for financially needy students, whereas the latter can be applied for by students of any economical background.
- Subsidized Stafford loan charges no interest until the completion of the grace period, while in the unsubsidized type, the student has to pay the interest charges.
Federal Perkins Loan
- Federal Perkins are given to students who are in great need for financial help.
- Apply for this loan by filling up the FAFSA form.
- Perkins loan is offered in collaboration with the government and college funding.
- It is provided on a 'first come, first served' basis. Hence, for securing Perkins loan, you are required to fill up the necessary form as soon as you secure an admission in the college.
Student Loans Requiring Cosigner
- Another option for no credit check student loans is to take help from a trustful cosigner.
- It is a mandatory procedure for many of the institutions to have cosigners for securing student loans with no credit history or bad credit.
- The cosigner is taking the responsibility of repaying money, if the actual borrower or student fails to repay the loan.
- With such a condition, the student gets educational financing at a very low-interest rate.
- Apart from the federal routes for getting educational financing, there are also private student loans with no credit check, either as secured loans or unsecured loans.
- However, make sure that you check the annual percentage rates (APR) and the loan facilities prior to signing for the particular loan.
- Do not fall prey to private lenders who provide loans with a higher interest rate or lesser features.
If you are doubtful about the correct option for securing no credit check student loans, you can seek advice from an experienced financial adviser. He/she is the best person to explain to you, the various ways to achieve educational financing with low or no interest. You can also gather information about federal grants and scholarships. The good news is that if you qualify for federal grants and scholarships, you won't be required to repay the amount anyway.