Channel to No-Credit-Check Student Loans

When considering a college education never make the assumption that you will not be eligible for a student loan because you have no credit history or a bad credit report. Whilst no reputable financial organization would consider extending a private loan to a student without conducting a credit check, the federal government provides loan assistance with no credit checks involved. These usually make up most of the funding a student needs to pay their way through college.

Any financial awards which the student may be eligible for, such as scholarships or grants, are given without credit checks. There are also a number of federal student loans available which require no credit checks. There are four such loans available, though some are needs based or awarded to only low income students.

The federal Stafford loan is the one which awards the most funds so is the first port of call for most students. This comes in two forms, subsidized and unsubsidized.  The subsidized loan is a means based one, and has the advantage of a lower fixed interest rate. Most importantly the interest on the loan is subsidized by the federal government and not applied to the loan until repayment is due, after the deferred period when the student has graduated. The unsubsidized Stafford loan is not means based and thus available to all students.

The primary difference is that the interest is applied from the beginning of the loan until it is repaid in full.

The Stafford loans have fixed interest rates but must be applied for each college year. The amount you can borrow through either of these loans is determined by the school you will be attending, but are easy to apply for with the FASA form available online. The finance officers at the chosen school are also there to help and guide you.

The Pell student loan is another option, but this is only open to low income students, but again needs no credit check. If the student falls into this category it is worth making an application. The federal Perkins loan is the final option which requires no credit check. This combines funds from the federal government and the individual college, and is particularly valuable to those who intend to enter some professions which make them eligible for the student loan forgiveness program, which could cancel out the debt when the student works in a qualifying field.

The federal PLUS student loan which is available for parents to assist the student through college is a credit checked loan. All private school loans require a credit check, though will usually grant a student loan if there is a co-signer to endorse the loan.

If there is still a shortfall in necessary funds your choices become family assistance, working, or looking at private loans with a co-signer.

Apart from the federal loans there are no loans available without credit checks, and if you can find one you should be very wary of the terms or interest rates involved.