No Credit Check Student Loans

No credit check student loans are a boon for students, especially those who have less impressive credit or no credit at all. Both federal and private student loans that require no credit check are available today.
It is a common incidence that students have no credit at all or if they have, the credit score is usually less. At any point of time, no credit or less credit is far better than a bad credit. Nevertheless, in such situations, getting qualified for student loans is very difficult. Every private financial institution checks credit prior to sanctioning educational loans. In fact, many students end up taking loans with very high interest rates. The good news is that there are student loans with no credit check. Let's discuss the options for student loans with no credit check.

There are several types of student loans that do not require credit check. In most cases, no credit check student loans are federal loans. Going through federal routes for getting student loans is the best way, as they charge a very low-interest rate and are long-term. Some of the popular options for securing student loans with no credit check are as follows:

Federal Stafford Loan: Federal Stafford loan is one of the best options for these loans. With Stafford loans, you have the flexibility to repay the loan amount within a grace period of six months after you earn your graduate degree. For obtaining this loan, you need to fill up FAFSA (Free Application for Federal Student Aid) form. All undergraduate and graduate students can apply for this loan.

There are two types of Stafford loans, namely, subsidized and unsubsidized. The former is designed for financially needy students, whereas the latter can be applied for by students of any economical background. Subsidized Stafford loan charges no interest until the completion of the grace period, while in the unsubsidized type, the student has to pay the interest charges.

Federal Perkins Loan: Federal Perkins are given to students who are in great need for financial help. Apply for this loan by filling up the FAFSA form. Perkins loan is offered in collaboration with the government and college funding. It is provided on first come, first served basis. Hence, for securing Perkins loan, you are required to fill up the necessary form as soon as you secure an admission in the college.

Student Loans Requiring Cosigner: Another option for no credit check student loans is to take help from a trustful cosigner. It is a mandatory procedure for many of the institutions to have cosigners for securing student loans with no credit history or bad credit. The cosigner is taking the responsibility of repaying money, if the actual borrower or student fails to repay the loan. With such a condition, the student gets educational financing at a very low-interest rate.

Other Loans: Apart from the federal routes for getting educational financing, there are also private student loans with no credit check, either as secured loans or unsecured loans. However, make sure that you check the annual percentage rates (APR) and the loan facilities prior to signing for the particular loan. Do not fall prey to private lenders who provide loans with a higher interest rate or lesser features.

If you are unsure about the correct option for securing no credit check student loans, you can seek advice from an experienced financial advisor. He/she is the best person to explain to you, the various ways to achieve educational financing with low or no interest. You can also gather information about federal grants and scholarships.The good news is that if you qualify for federal grants and scholarships, you won't be required to repay the amount. Isn't that great? --- Ningthoujam sandhyarani

Student Loan Consolidation Rates and Comparison

Consolidating loans may seem like an obvious choice for any student stuck up in the pile of debt. These loans have a cap of interest rate of 8.25%, meaning you won't have to pay interest rate any more than that. Since, one direct consolidating loan can take care of multiple smaller loans, your credit report gets a boost as it records a paid status for numerous loans, in spite of the same impending debt amount. Best rates for student loan consolidation can be obtained on federal student loans such as Direct and FFEL Stafford Loans, PLUS Loans, Federal Perkins Loans and others. Since, these loans may have a interest rate more than 8.25%, you will end up paying much less on a consolidating loan as it cannot have an interest rate beyond 8.25%. However, there are certain limitations on the benefits you can avail from this loan. Firstly, consolidating student loan provides maximum benefits on federal student loans only. Private loans may already have interest rates less than 8.25%, in which case you will end up paying roughly the same amount after consolidating your loans.

Student Loan Consolidation Rates

Student Aid on the Web defines the student loan consolidation interest rates as weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%, to a maximum of 8.25%. Following example will give you a clear understanding of private and federal loan consolidation rates.

Mark, a student has loan A of amount $10,000, loan B of amount $5,000 and loan C of amount $3,000. Mark is paying 6.25% interest on loan A with a monthly payment of $625, 8.5% on loan B with a monthly payment of $425 and 8.75% on loan C with a monthly payment of $262.5. Mark's total impending debt can be consolidated into a single loan of amount $18,000 ($10,000 + $5,000 + $3,000). The interest rate on a consolidated loan can be found out as,

$625 + $425 + $262.5 = $1312.5

Divide the above amount with consolidated loan amount of $18,000 to arrive at a figure of 0.0729. Converting it to a percentage you get an interest rate of about 7.29%. The last step is to round the interest rate to one eighth of 1%, which is 7.25%.

This was all about the estimate for student loan consolidation rates. Evaluate your options wisely before going for a consolidating loan. ---Ashvani kulkari sule