Obtaining a Student Loan Without Credit Check

By | November 20, 2013

STUDENT LOAN NO CREDIT CHECK

College education in the United States of America is a very costly affair. Not many people can afford to send their kids to college without the help of student financial aid. Parents and students can secure financial aid from the government, from private institutions and from their respective schools as well. A financial aid is made available to the students in the form of scholarships, work study programs, grants and student loans. Financial aid can be made available to the students wither on the basis of pure or on need basis. While applying for the most common federal financial aid, students have to fill a common application form for all federal lending institutions called the FAFSA( Free Application for Federal Student Aid).

The lending system has now made the borrowing process a very simple affair for students looking for a dependable financial aid. For students who don’t have a dependable financial aid, secureing a loan was next to impossible as lending institutions get reluctant while advancing a loan to a person who is suffering from a bad credit status. Such students have always faced a major hindrance in the process of secureing a loan, but not anymore. Students with a bad credit history can also get student loans loans easily, thanks to the surfacing of no credit check loans.

A credit check is referred to a process wherein the bank determines the creditworthiness of the potential borrower before advancing a loan to him. Credit worthiness is usually checked by banks by turning to the 3 main credit bureaus to check if any of their potential clients have reported a bad debt or late payments to any of the bureaus. A bank will advance a loan to its potential borrowers only after checking the credit ratings given by the 3 bureaus to its potential borrowers. A no credit check loan means that a bank will not check the credit ratings of its potential borrowers.

Under no credit check student loans, credit is advanced to the students for a definite purpose and for a predetermined period of time. Usually, such loans are repaid in the form of installments. An important thing to be remembered while dealing with no credit check solutions is that funds are required for single transactions which are purely non repetitive in nature. The funds afforded from such can be withdrawn only once.

So this means that if a student has depleted his/her funds, he/she has to file for a new request so that a new loan can be advanced, the same goes for the renewal of such a loan, a fresh new request has to be made all over again. The lender in this case enjoys a full liberty to refuse or grant loans to the students each time they for it. Which means the students will have to negotiate stronger each time they want to obtain a loan and in times of a bullish period for the lender, he will refuse to advance a loan to the students as the bank’s cash reserves will not be adequate enough and it might against the policy of the bank.

No Credit Check Loan Types

A no credit check loan is of 2 types: they are obtainable in secured as well as unsecured forms. In order to obtain a secured no credit check loan, the borrowers will have to deposit a security against the amount of loans. On the contrary, an unsecured no credit check student loan doesn’t require any safety deposit by the borrower. A graduate student can obtain a maximum no credit check loan of about $13,510. With the help of this loan, students can easily meet with their education costs ranging from tuition fees, hostel fees and all other charges including the purchase of books.

A Subsidized loan is a perfect example for no credit check loans for students. Unsubsidized loans differ from no credit check subsidized loans in 2 main ways. Firstly, the subsidized loans are totally based on the person’s financial needs. Secondly, the interest on no credit check loans does not accrue while students are still in college, besides college, interest is not accrued even during the grace period or any deferment period needed by the student during the phase of repayment.

A subsidized loan for students allows only limited amounts which can be borrowed from the bank.

The following is the criteria for dependant student:

  1. Freshman year: $3,500 per year
  2. Sophomore year: $ 4,500
  3. Junior year: $5,500
  4. Senior year: $5,500

For independent students pursuing a graduate school, the maximum amount of loan which can be secureed is limited to $8,500.

The interest rate for a subsidized Stafford loan for the school year of 2010-2011 is 4.50%; for the school year of 2011-2012, the interest rate will be as low as 3.40%; in the year of 2012-2013 the interest rates are likely to rise up to a 6.80%. So if you want to start school, it seems to be most feasible to do it in the month of September in 2011.

As the no credit check student loans aren’t bound by restrictions and standard loan limitations, the financial aid office will apply first for the subsidized loans and later for the unsubsidized loans if they find that you qualify according to their eligibility criteria. This system of no credit check on loans has led to a greater degree of self discipline on part of the borrower due to the repayment policy of fixed monthly payments. On the grant of a renewal or a sanction of a loan, every banker gets to access the loan accounts and if he finds any discrepancy against normal standards then he can even use his discretion to discontinue the loan.

No credit check loans provide equal benefits to students with a good credit status and ones have a bad credit history, as a credit status is not considered during advancement of the loan. Also, these loans can be obtained via physical lenders or even via the internet. To get a no credit check loan online, you just need to specify which type of loan you want, the amount of loan and the period of loan among personal details like contact number, name, address and all.

Thanks to the no credit check loans, every student can pursue the course and the college of their dreams, which wasn’t possible in the past due to financial hindrances.

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