No Credit Check Student Loans USA
Borrowing has become very common in today’s era due to elevating demands of upgraded lifestyle. With many new borrowers and college students, it becomes very hard to secure a loan without established credit. Despite the financial situation in dire need of cash, no credit is always better than bad credit by slight margin to be an eligible applicant. Thereby, it is always suggested by financial advisors to protect credit rating from day one. Now, the question arises, how can college student do so? Well, the greatest financial success of a student is determined by his timely phone bill payments and managing revolving credit account. So, by all means, put your best foot forward to witness you fiscal financial behavior as no bank and credit union is going to lend you without strong credit history.
It is a well known fact that the college students do not have enough cash to fulfill their all desires but like any other consumer they could not ignore unexpected requirements like paying tuition fee, upgrading their laptop to prepare an assignment, so they are forced to acquire loans that implies high interest rates. Undoubtedly such loans provide instant cash but bear in mind that they could result into insurmountable debt for a student which can result into a biggest hurdle into his academic career. It becomes more difficult to look for bank loans when the credit rating is already against. However, to help such students, in additional to education grants and other financial aid, the US Federal Government provide no credit check federal loans that do not ask for credit history.
No Credit Check Federal Loans
The first step to apply for this financial services is to complete Free Application for Federal Student Aid(FAFSA) in which you are asked to mention your family’s financial situation to determine your Expected Family Contribution(EFC). It is necessary to draft an Individual Student Aid Report(SAR) that states student’s financial requirements related to college. Then it is forwarded to universities of student’s choice, to place the student in the queue to be considered for whatever student aid would be available.
Federal Direct Loan Program
Grants and Loans are the essential elements of student aid packages. Once the grant is exhausted, the government offer you long term low interest rate federal loan to assist you in meeting remaining college economic obligations. These were earlier known as Stafford Loans but they are now renowned as William D. For Federal Direct Loan Program. This is the best financial aid for both the bad credit and no credit. This program issues two types loans: one which are subsidized by federal loans and one which are not.
1. Subsidized Loans are for undergraduate students with highest financial need during college. Interest for these loans is 3.4%. The most important benefit here is that the US Department of Education pays the interest on loan:
- While the student is enrolled
- During a six-month grace after school
- During periods of repayment deferment
2. Unsubsidized Loans are accessible to both undergraduate and graduate students, without any demonstration of financial hardship. All the internet amount is supposed to paid by the borrower only. The interest rate for these loans is 6.8%
State Student Loans
Some US states provide valuable funding to sponsor the students’ education as follows:
1. The Minnesota Office of Higher Education offers SELF Loans, the long-term fixed-rate education loans, to help the students in pursuing higher education within the state. This loans demands a credit-worthy cosigner which offers up to $10,000 annually. This program is accessible by the residents as well as non-residents attending college in Minnesota.
2. The Dakota Education Alternative Loan(DEAL) also requires a cosigner. When all their federal funding options are exhausted, this loan allow the students to borrow up to $50,000 for school expenses who are studying in North Dakota, South Dakota, Minnesota, Wyoming, Montana or Wisconsin.
3. Another program is run by Alaska Commission on Post Secondary Education State students. To borrow from the AlaskAdvantage program, a cosigner and a FAFSA is required on file. Eligible borrowers are asked to pay fixed interest rates around 7%.
The federal government understand that the country’s bright future is determined by the sound education of its students. That’s why it leaves no stone unturned to help them.
