How to Get a Student Loan with No Credit History
Going to college is perhaps the single most important thing a young adult can do in order to secure his/her future. Unfortunately, many young students have no way of putting themselves through college, and not all parents have set aside college funds. In fact, some parents have struggled just to put food on the table and pay the bills during their child’s life, let alone try and put money aside for education. The good news is that money is not required in order to go to college. There are many forms of student financial aid and student loans available to people who have no money. Even if a student has a poor credit score, or no credit rating, which is often the case, he/she can still obtain financing to go to college. Following are some of the more popular ways that students, who are not able to pay for college, can secure financing.
Get a Co-Signer
Any time a person walks into a financial institution asking for any type of loan, they will almost always be required to have a credit score that is above average. If the individual does not have a credit score that is adequate, then they may opt to provide some sort of collateral, or bring a co-signer who does have a good credit score. In the case of a young student looking for a study loan it is unlikely that collateral will be available; as a result a co-signer is the best option. A co-signer must also have an adequate credit score, and must be willing to accept responsibility for the full loan amount should anything happen. Often family members such as Grandparents, Aunts and Uncles, or even siblings are good candidates to become co-signers.
Stafford and Perkins Loans
Provided there are no outstanding government loans on a student’s history, he/she may be eligible to receive student finance for school in the form of a Stafford or Perkins Loan. These loans were created with lower income students in mind, and do not take credit history into consideration during the application process. In addition, these loans are generally available to any student who meets the financial guidelines and requirements to receive this sort of education loan. Stafford loans do not have to be paid back until the student has been out of school for a period of six months.
Process to Apply For Federal Assistance and Pell Grants
A free online student loan application is available at the FAFSA website and must be filled out by any student wishing to obtain a Pell Grant or other form of Federal Student Aid. Generally, someone who is 23 and is not married will need to report his/her parent’s financial information, along with any other income he/she has earned. Also included in the report will be the total number of family members, as well as how many of them are currently attending college. It is important to keep in mind that the federal government can access any and all financial data on anyone they choose. This is why it is very important to be totally honest when applying. In addition, lying on an official application could result in legal action being taken against the guilty party.
To obtain more advice on student loans and how an individual can go about obtaining one, with or without credit history, an online search will bring up a wealth of information on the topic. In addition, speaking with the guidance department at whatever school a person wishes to attend is also a great way to go about getting financing.