Funding an education is one of the most expensive investments especially for higher education. Without a scholarship or a steady flow of income, it can be frustrating.
There is the loan option of course but fear sets in when your credit scores are less than perfect. The chances of getting a decent loan that will take you through college or university may be a tricky affair. However, you don’t have to lose sleep over such a situation or throw away your dream career just because you have a poor credit score and no funds to pay your fee.
Of course, having a short positive credit history is definitely better than none at all, and it is, therefore, important to pay your phone bill on time and manage your credit cards to have a healthier credit score, all hope is not lost if lenders view you as a risk.
The government mostly offer loans that do not look so much into your credit history. These no credit student loans offer a great relief for students in need of financial assistance but burdened with bad credit scores.
What you need to do before applying for a student loan
When you realize you will require financial assistance for your education, you should fill and submit the Free Application for Student Aid form. It is advisable that you do so early. The FAFSA requires your tax information as well as your social security number, the number of dependents you have and annual income. Family’s tax information is not required for independent adults over 24 years old. Getting the form submitted early puts you at a greater chance of getting financial aid as other loans are given on first come first served basis. No credit student loan options available. These are just a few of the loans available that do not look into your credit history and have a low, pocket-friendly interest rates.
Federal Direct Student Loans
To be eligible for this loan, you must be a U.S citizen who has demonstrated financial need. You must also have enrolled half-time in the school. You must have submitted your FAFSA. These loans have fixed interests rates making them very attractive. One will not be required to make any payments during college. Those with a poor credit history need not worry about it because there are no credit checks done. The financial aid given applies to all college expenses too.
With an interest rate that can be as low as 3.4%, you need not put a halt to your dream career due to lack of finances with such a loan option available to you. The neediest applicants are offered subsidized Direct Loans where the Department of Education clears the loan interest when the student is still in school as well as a grace period of six months after graduation.
In the case of loan repayment deferment, interest is also waived. Other applicants are often offered the Unsubsidized Direct Loans which by virtue of being not credit based, are still an attractive option. Even though the interest rate is higher than the subsidized direct loans, the rates are fixed so repayment does not come with unpleasant surprises.
These loans are issued by the U.S Government. They are administered through the individual Institutions of Higher Education. In many cases, students who have been identified as being in need in college are the ones eligible for this loan. Those families that live on incomes below twenty-five thousand dollars per year are also eligible for this loan. The size of Perkins loan you receive will depend on how early you submitted your application form, the level of financial need you are in and how much money is available.
Qualified undergraduates can receive up to five thousand five hundred dollars in each academic year. They also have a borrowing maximum of twenty-seven thousand dollars. Graduate students who qualify are eligible for a funding of up to eight thousand dollars for every academic year and are allowed to borrow a loan of up to sixty thousand dollars in the course of their studies. There are other no credit student loans for those pursuing a degree in the high-need fields such as health science and teaching.
Students’ loans designed for health science students exist and they include Loans for Disadvantaged Students, Nursing Students Loan Program and Primary Care Loan Program. However, there are better financial aids for financially needy students such as scholarships and grants that do not require repayments after studies are done. Therefore, bad credit scores cannot bar you from pursuing your dreams because there are options and avenues you can explore to receive non-credit based loans. Knowing your options helps you to make an informed decision.