No credit student loan

Student loans enable a person to meet various types of expenses relating to education. In countries like United States, credit history of a person plays an important role in getting student loans and in deciding various types of aspects like interest rates etc.No credit student loans are those student loans that are taken by people having no credit history, i.e. they have not availed any type of credit facility earlier and thus, it is very difficult to establish their credit.


No credit does not mean that a person cannot get a student loan. It has been seen in many cases that a person is asked for a co-signor for getting loan amount. This is actually done for securing the loan amount.Though there are lenders that provide student loan to a person having no credit and without any requirement of co-signor, choice for various types of student loans get restricted. A person might have to compromise with higher interest rates, inflexible repayment schedules etc if he goes for obtaining no credit student loans from private lending institutions like banks. There are some steps that a person with no credit can resort to for getting desired loan amount.


First of all, a person should make research for various types of federal student loans.Most common type of federal student loans that do not require any credit check are Stafford Loans and Perkins Student Loans. For this, a person can fill the popular FAFSA or Free Application for Federal Student Aid. This form is an integral part of all the federal student loans. This form also helps a person in securing grant money. Third step is to apply for the Stafford Loans. For needy students, subsidized Stafford loans are provided. All low income persons are eligible for this type of loan and there is no requirement of co-signor too. A student can also apply for a Perkins Loan. These loans are designed for students having greatest financial needs. Interest rate attached with these loans is 5% and have longer repayment periods as compared to Stafford loans.


As a matter of fact, there are more student loan options available for non-traditional students. These include scholarships, grants etc.


In case of no credit Stafford student loan, money is guaranteed by the federal government against defaults while administration of loan is done by private lenders. These loans also attract low interest rates. There are also some no credit Stafford student loans where interest is paid by the government till student is in school. Other types of no credit Stafford loans defer interest up to a time the student starts earning a definite amount.


In most of cases, student loans provided by federal government are not enough to cover all education expenses and as a result, a student has to approach private lenders for getting additional student loan.If a student is not having established credit, private lender may require that parent of student act as co-signor in the said loan. In such cases, credit check of parent is done to ensure that he is not suffering from bad credit.


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