Tips on No Credit Check Student Loans

By Morris Johnson

In modern days student and parent borrowers who have bad credit score would like to know more about school loans with no credit check: "Are they real? How can I apply?". The fact is - they are real. No credit check student loans exist and millions of individuals get them.

There are two types of education loans that can be obtained: private and federal. Federal loans provided by the U.S. department of education are also known as "no credit check" college loans.

Federal low-income loans are provided by the U.S. Department of Education. These loans are low-cost. However the major moment to understand is that they are dealing with need-based factor. Thus, the government is carrying about youth and wish to offer the opportunity to borrow funding despite of credit history and level of income. Federal student loans have no credit check. In truth, it doesn't matter if borrowers have little, bad or no credit history. Furthermore, it's doesn't matter whether borrowers have high or low level of income.

They are created to perform a social role: helping people pay for education and have good career. In order to be able to apply for federal student loans (no credit check loans) successfully you must be familiar with all types including Federal Stafford, Perkins, PLUS. Take into consideration, PLUS loans are exception, good credit score is required and credit check will be done. And, two out of 3 federal low-income loans (Federal Staford and Federal Perkins) are really loans with no credit check involved.

Alternative Loans

What about private education loans: "Could they be considered as no credit check?". The answer is no. Non-federal loans are based on a different criteria. They are dealing with credit-worthiness. They do not carry out a goal to make college financing more affordable, financial companies are focused on business. Their main goal is to generate income. And they want to know if a borrower has opportunity to receive a loan and to repay it in time. So, if you thinking about applying for alternative loans, credit check will be done.

The second method of applying for private loans involves an endorser. Cosigners will take responsibility for loan repayment for themselves. It means that if a student borrower for some reason face huge troubles and has no real opportunity to repay the loan, the cosigner should do it. For this reason, loan lenders have certain eligibility terms for co-signers. Firstly, a co-signer must have a perfect credit score. The second thing to remember, a co-signer has to have high income.

As a conclusion, it's obvious that no credit check loans are real (Stafford and Perkins loans). People can effortlessly apply for them with bad or no credit history and without cosigner. Alternative option is private student loans that can be obtained with the help of cosigners.

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Find more tips about no credit check college loans. Read the advices from a well-known student aid expert who knows all secrets of no credit check student loans.