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Securing Student Loans With No Credit Checks: Easy-Access Loans For College-Goers

The fact some lenders are willing to grant student loans with no credit checks illustrates the opportunities open to college-goers. If nothing else, this offer makes accessing funds for college education easier.

The fact that, in the eyes of lenders, students fall into the bad credit bracket is often seen as a hindrance to those seeking funds for their college education. But it is not actually the hindrance many believe. There are loan opportunities available, and the fact that lenders offer student loans with no credit checks prove that.

There is a logical reason for their poor credit status. With no credit history to indicate past repayment habits, lenders can only assume there is a higher risk than may be the case. In every case, it is up to the borrower to earn their reputation.

When the credit score factor is ignored by the lender, this is very good news for the student. Guaranteed fast loan approval it might not be, but an improved chance at approval it is. When applying for a student loan, there are options to consider, with some federal, private and online lenders willing to overlook the credit status of a student when assessing their application.

The Private Loan Option

Private lenders tend to have the strictest lending policies, so it can be difficult to find one willing to grant a student loan with no credit checks. They may understand that students have limited financial resources, but they also want to know if the student borrower has ever defaulted on a repayment in the past.

Typically, the terms offered by private lenders include a period of grace to ease the pressure on the students, usually until after graduation. There is no guaranteed fast loan approval on offer, but lenders are sometimes willing to overlook a credit history since the student is generally at the start of their financial future.

But be aware that the interest rate charged on a no credit check loan is going to be higher because the lender needs to protect their investment. It also means that when graduation day arrives, there can be some pressure to begin the student loan repayments.

The Federal Loan Option

The federal loan option is the logical option for anyone seeking student loans with no credit checks. In fact, it is here that the best no credit check loan deals are to be found, principally because the federal government is more interested in helping students get a college education than in making a profit.

But there is a clear process required in order to secure a federal loan. First, the government identifies what loan program an applicant qualifies for from the Free Application for Federal Student Aid form that must be filled in. Applicants must have limited financial means before qualification is guaranteed; fast loan approval is not available.

The most common federal student loan programs available are the Stafford Loan and Perkins Loan programs. A Stafford Loan is available in either a subsidized or unsubsidized form, with only those in financial need qualifying for the subsidized option.

A Perkins Loan is available only to students in severe financial trouble, and is issued through a college financial aid office, though it is financed by the government.

The Online Loan Option

Finding a lender willing to grant student loans with no credit checks can be tricky, especially when the applicant has failed to qualify for the primary option (a federal loan program). The best resource in these cases is the Internet, where private lenders can be sourced and their loan terms assessed quickly. 

Online lenders typically offer better terms than traditional banks (though not as good as federal terms), and because they are experts in bad credit lending, it is also easier to secure near-guaranteed fast loan approval. 

Also, while federal student loans usually cover just college feesFeature Articles, a large sum to help cover living expenses is also more easily accessed.

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


Melissa Kellett has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Bad Credit Loans Guaranteed and also in helping people to get approved for home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards, Bad Credit Mortgage Loans among many other financial products. For further information, please visit http://www.speedybadcreditloans.com



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