Picking which college to attend is stressful enough. The last thing you need is to worry about qualifying for student loans. Luckily, there are many student loans without a credit check. So if you have bad credit, don't worry. You can apply for student loans without a credit check.
Types of Student Loans Without a Credit Check Although most student loans require a credit check to apply, there are several sources available for student loans without a credit check. Don't even bother with private lenders, such as banks, credit unions and other financial institutions, because they most always will do a credit check before offering you any student loans ("Private Education Loans"). Also, most all education loans available to parents will require a credit check. Even PLUS Loans for parents, a federal education loan program for parents, requires a basic credit check ("Parent Loans"). So, your best option is to look at federal student loans. There are several federal student loans without a credit check. Here's the list:
Federal Perkins Loans: Perkins Loans are granted to undergraduate and graduate students who have great financial need without a credit check ("Campus-Based Aid"). You can borrow up to $4,000 each year, and they have a 5.00% fixed interest rate. Your college handles the money, and you must begin repayment to your college starting nine months after you graduate, enroll below half-time or leave school ("Campus-Based Aid"). They are good deal if you qualify because they have very low interest rates and generous repayment schedules.
Stafford Direct Student Loans: The US Department of Education is the lender for Direct Loans, and it doesn't require a credit check. Direct loans come in two forms: subsidized and unsubsidized ("Stafford Loans"). Subsidized Direct Loans are only given to students who demonstrate need. Because they are subsidized, you don't pay any interest. Unsubsidized loans can be obtained regardless of need, but you pay interest on the loans. All Direct Loans disbursed on or after July 1, 2006 have a fixed-rate, set at 6.80% ("Stafford Loans"). The amount of money available to you depends on several factors: whether you have a subsidized or unsubsidized loans, your grade level and dependency status ("Stafford Loans"). You will have six months before you must start repaying your loan after you graduate, enter half-time enrollment or leave school.
Stafford Federal Family Education Loans (FFEL): FFEL are another type of student loans without a credit check, and they are very similar to Direct Loans. They both have the same interest rates, eligibility rules and loan amounts ("Stafford Loans"). Also, FFEL Loans can subsidized or unsubsidized. The subsidized and unsubsidized version work just like the Direct Loan versions. The main difference between FFEL and Direct Loans is that FFEL lenders are private financial institutions, such as banks and credit unions, that participate in the government program ("Stafford Loans"). Unlike Direct Loans, once you qualify for a FFEL loan, you have to select a lender. However, selecting a lender isn't difficult, and schools usually make the process easy by having a list of preferred lenders for you to choose from.
How do I Apply for Student Loans Without a Credit Check? It's easy to apply for the federal student loans without a credit check. All you have to do is complete and submit the Free Application For Federal Student Aid, the FAFSA. The application doesn't include a credit check, and allows you apply for all federal student loans. The government and your college process your application and send you an Award Package that details all the grants, loans and other financial aid programs that you are eligible for. Your job is easy. Just accept, decline or reduce the amount of the various student loans without a credit check. The FAFSA itself is fairly easy to complete. The only hard part is completing the student and parent financial information sections. Considering how many student loan programs you are applying for with that one application and not needing a credit check, it is easy.
The federal government doesn't penalize students for a lack or credit history or bad credit. If you apply for federal student aid, you will find several student loans without a credit check. If you would like more information about student aid and applying for federal student aid, check out our Student Loan Guide.
