No Credit Check Student Loans Overview
The article covering all details about student loans with no credit check. Read our free guide to have all necessary information on this topic.
The theme of education becomes more popular and popular today. People are doing all the best to find real and inexpensive funding ways to cover all education expenses. Actually it's important to attend college or university because it allows students to have huge career opportunities and high wage.
Sometimes borrowers have bad credit history and want to know more about no credit check student loans: "Are they real? How can I apply?". The truth is - they are real. No credit check student loans exist and millions of students receive them.
There are two categories of loans available for students: private and federal. Federal loans offered by the federal government are also known as "no credit check" student loans. The reason lies in the nature of these loans.
Federal student loans are provided by the U.S. Department of Education. These loans are the cheapest. But the main point to understand is that they are dealing with need-based factor. So, the government is carrying about youth and want to give them opportunity to borrow money regardless of credit score and income-level. Federal loans have no credit check. In fact, it doesn't matter if you have little, bad or no credit history. Moreover, it's doesn't matter whether you have high or low level of income. It happens to the nature of these loans.
They are designed to perform a social function: helping students pay for education and have better life. In order to be able to apply for federal loans (no credit check loans) effectively you should know all types including Stafford, Perkins, PLUS. Take into consideration, PLUS loans are exception, good credit score is required and credit check will be done. So, two out of three federal loans (Stafford and Perkins) are really loans with no credit check involved.
Private Education Loans
What about private education loans: "Are they no credit check?". The answer is no, they are not. Private student loans are based on another factor. They are dealing with creditworthiness of borrowers. They do not have a mission to make student's life better, private loan lenders are business companies. They are working to be profitable. And they are carrying if a borrower has opportunity to get a loan and to repay it in time. So, if you want to apply for private education loans, credit check will be done.
The alternative way of applying for private loans is having a good cosigner who will help you. Cosigners will take responsibility for repaying loans for themselves. It means that if a borrower for some reason face huge troubles and has no real possibility to repay the loan, the cosigner should do it. For this reason, banks and other private lenders have certain requirements for cosigners. First, a cosigner must have a good credit score. If you cosigner doesn't you won't get approved. Again, banks want to be sure you repay the loan and have stability. That's why your cosigner must meet this requirement first of all. The second major requirement, a cosigner has to have high income. Again the reason is the same.
In the end, it's obvious that student loans with no credit check are real (Federal Stafford and Perkins). You can easily apply for them with bad or no credit history and without cosigner. Another option is private student loans requiring applying with cosigners in order to be successfully approved.
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ABOUT THE AUTHOR
Milana Grade is a leading federal student financial aid specialist. If you're really interested in student loans with no credit check, visit her official site today.