Student loans are typically the primary way for students to pay for their college education. However, in order to acquire these loans from banks or credit unions, students or their parents are required to go through a credit check similar to one they would need if taking out a personal, auto or mortgage loan.
In many cases, going through a credit check will result in a loan denial, something that a student cannot afford if they want to get their education. It’s for this reason that many seek no credit check student loans.
Federal Student Loans
The first option that many students consider when looking for no credit check student loans are those offered by the Federal government. There are currently two Federal student loans that do not require credit checks; they are the Stafford Loan and Perkins Loan.
The Stafford Loan is available to students in a subsidized and unsubsidized version. The Subsidized Stafford Loan is for students who demonstrate financial need as determined by the Free Application for Federal Student Aid (FAFSA). This loan is not charged interest as long as the student is attending school at least half-time – or if they are in the midst of a grace period or deferment.
The Unsubsidized Stafford Loan is for any student regardless of financial need and typically allows students to take out larger amounts to pay for school than the subsidized version. As for interest, it accrues from the time it is first paid out. This means, whether the student is in school, or in the middle of a deferment or grace period, the interest will continue to grow.
Loan amounts for both Subsidized and Unsubsidized Stafford Loans vary greatly depending on a student’s dependence on parents as well as their year in college. The amount is received is determined by the school that each student attends. Graduate and medical students are eligible for Stafford Loans.
The Federal Perkins Loan Program also offers no credit check student loans; however, they are given to students in exceptional financial need. These subsidized, low-interest loans are offered at approximately 1,800 postsecondary institutions and are available to part-time and full-time students.
The loan amounts for Perkins Loans max out at $5,500 per year and $27,500 over a lifetime for undergraduates while graduate students get $8,000 per year and $60,000 over a lifetime (including undergraduate loans).
State-Based Student Loans
Another way for students to get their hands on no credit check student loans is to consider options with their state. While options for state-based loans will vary dramatically depending on the state the student resides or attends school, the options are out there.
What’s great is that states very often want students to fill up their colleges and universities, so they will offer funds on their own or partner with student loan providers to provide great deals. Students looking for additional funding should definitely consider this option.
Other Financing Options
While there are a limited number of student loan choices for those who don’t want to bother with a credit check, there are other ways to acquire financial aid for college – some of which may not require repayment. Here are a few:
- Grants: This financial aid option is one of the best ways to pay for a college education. Funded by either the Federal government (ex. Pell Grant and FSEOG), or a private institution like a club, organization, business or company, a grant offers money to students of financial need under a wide variety of circumstances, including being a minority, having a disability or even being the child of a veteran.
- Scholarships: Students in financial need could also apply for several of the thousands of scholarships available. Often times, scholarships are offered to students with good grades by colleges they are interested in attending. However, there are plenty of other scholarships to take advantage of (see 45 of the Weirdest College Scholarships).
In a time where college is over 400% more expensive than it was just 20 years ago, it’s important for students to find ways to fund their college education regardless of their family’s credit. It’s good to know that there are a lot of great options available to help students in need get their hands on enough money to pay for a quality education.