Do not let our sad economy right now keep you from getting the loan that you need to finish your education! Even if you are dredged down with young credit history- or even worse, no credit history, there are options out there for you. We know what you are thinking- how can I apply for a student loan with no credit history? Here is how to apply for a student loan with no credit history, and no co-signer.
Most students have low credit scores not because they have bad credit, but because they have little to no credit. If you don’t have any credit cards, have never had a loan before, and are not regular borrowers of money, then your credit score will be low. Many students ask does having a student loan establish credit history? Yes! It does. Applying for and qualifying for a student loan can establish credit history. If you are prompt on your payments, it will reflect well on your credit history and credit score. If, however, you are unwise in how you handle your loan payments, it will begin to hurt your credit. Be very careful when you start paying back any kind of debt as being late or too small in amount for re-payments can lead to a lot of trouble.
This low credit is why lenders can be slow and hesitant to offer this kind of loans. That is why we think you should look to other sources than banks and private lenders for student loans. We think you should look at the federally funded loan programs out there like the Perkins loans and the Stafford loans.
It is pretty normal these days to need up to $100,000 just to finish and undergraduate degree. Some of this can be paid with scholarships or money made from part-time jobs, but unless you have a money tree somewhere to shake, you will probably come up short of the 6 figure amount needed to cover tuition, travel expenses, food, books, and all those other student related needs.
Stafford Loans are federally funded, and are very easy to qualify for. What makes them even better is that they are open to students without a credit check needed for approval, and without the need of a co-signer. Stafford Loans can give you up to $6,000 a year and have low-interest rates.
Perkins Loans are a lot like Stafford Loans, only they are easier to qualify for and don’t offer as much money per year as Stafford Loans. Perkins Loans can bring in about $4,000 a year, but there is a limit of $20,000 total you can take out on them, which means if your schooling extends more than 5 years, you will need to have additional sources of school income. Perkins Loans are loans without co-signers, and do not need credit checks to be qualified for.
There are lots of options for student loans with no co-signers out there- you just have to know where to look!