Getting The Best No Credit Check College Loans
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A large number of college students today hit a hurdle right from the start when it comes to getting together the funds needed for college because they have already managed to run up a poor credit report. Luckily however there are a number of aid and loan packages available which look principally at financial need and ignore your credit record. So, this is where you should start your search for funding.
One of the oldest sources of funding and one that is mainly available on the basis of economic need is the Pell grant. Providing the student and his family are classed as a low-income family a Pell grant is all but automatic and a grant is made based upon the submission of an application and supporting documents.
A student will be required to provide proof of the cost of his course (inclusive of tuition fees and other qualifying costs) and will also need to provide evidence of the family’s income from which an EFC (Expected Family Contribution) number will be obtained. On this basis a decision will be made and the grant either made or refused.
As the name suggests, a Pell grant is a gift and not a loan and it does not need to be repaid. Pell grants are presently for a maximum of $4,731 annually (depending on an assessment of financial need) and, while this will not normally cover the total cost of your college education, it will be a great help. Nevertheless, most students will have to seek loan funding in addition to a Pell grant and probably the best form of loan funding in this case is a Stafford college loan.
There are presently two types of Stafford loan and the first is a subsidized Stafford loan on which the government covers interest loan payments while you are in full-time study and for up to six months following graduation. The second type of Stafford loan is an unsubsidized Stafford loan on which you will be responsible for making all of the interest payments.
Unsubsidized Stafford loans have to be considered very carefully because, though you will be responsible for making interest payments, you will not need to do so as long as you are in full-time study and for a period of up to six months after graduation. having said this, during this period interest will still be calculated on any loan and will simply be added to the outstanding amount of the loan. This means that during a normal three or four year college course your debt can grow substantially.
Not surprisingly, most students would prefer to take out unsubsidized Stafford loans but loans are made according to the money available and against need so that only a few students qualify for a subsidized loan. The good news however is that most students will qualify for an unsubsidized loan and, in spite of the drawbacks, they nonetheless represent one of the very best forms of college loan funding available today.
Of course, there are other forms of grant and loan funding available and you will need to look around to see exactly what is on offer and what best meets your needs. For students who come from low-income families however both Pell grants and Stafford loans are undoubtedly the best option when looking for college funding.
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