How to Get a Student Loan Without a Credit Check
Nowadays, getting a student loan has become a regular part of the process for those who wish to pursue higher education. If you don’t have an established credit card, as it often is with college-age students and new borrowers, it can be difficult to get a loan. It is better to have no credit card than to have a bad one. However, the difference is very slight.
As many students haven’t had enough time to develop a good credit history, they are in need of loans without a credit check or that have other ways of checking your reliability to pay off the loan. Below is an overview of some loan types and methods of getting a student loan without a credit check.
Federal Loans
In order to get federal financial aid for college, prospective students must complete the Federal Student Aid Free Application (FAFSA). This form allows you to state your financial situation in your family to determine the Expected Fund Contribution (EFC) your family can raise for your college funds. After the EFC is determined, you will get a Student Aid Report (SAR) that denotes your college fund financial needs. These SAR forms are sent to universities you choose for the student loans consideration. There is no credit check required for this procedure.
Stafford Loan
The Stafford loan program issues two types of loans. They are those that the federal government subsidizes and those that they don’t. For the undergraduate, the Stafford Subsidized loans are administered to those with heavy financial needs. For the unsubsidized loans, you don’t require a financial need demonstration.
Perkins Loans
The Perkins loans are student loans that are funded by the federal government. In this case, they are sent directly to the higher learning institution you are based. They are reserved for graduate and undergraduate students who have extreme financial need during their college sessions. Families that don’t earn more than $25,000 are eligible for this action. Not all schools participate in these loan programs. Therefore, it is important to consult with the financial aid office at your school of choice to seek clarification on this matter.
Because the funds from Perkins loans are limited, the money is issued to those who first apply for the loans. Therefore, you should file your FAFSA files as soon as you can if you want to secure a Perkins Loan. Factors that influence the amount of money to receive from the Perkin loans include:
- Your demonstrated need level
- When you apply
- The funding amount available on your campus
For undergraduates, the maximum yearly borrowing limit stands at $5,500. However, you cannot exceed a limit of $27,000 a lifetime. Graduate students are allowed to borrow up to $8,000 a year. For their course of education, they are not allowed to borrow more than $60,000. The fixed interest rates for these loans stand at 5 percent.
Private Student Loan: Finding a Co-signer
If government aid does not cover all your college funding needs, you might consider exploring a private student loan. Private loans cannot be acquired without credit checks, but if you have a cosigner, the one whose credit matters most is your cosigner. Because of this, your cosigner should have a good credit history.
