Locating The Best No Credit Check College Loans
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A lot of college students nowadays run into trouble before they even start when it comes to getting the money necessary for college because they have already managed to run up a poor credit history. Fortunately however there are various loan and aid packages available that look chiefly at financial need and ignore your credit record. So, this is where you will have to begin your search for funding.
A well established source of funding and one which is chiefly made available on the basis of economic need is the Pell grant. As long as the student and his family are classed as a low-income family a Pell grant is more or less automatic and 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 additional qualifying costs) and will also have to furnish evidence of the family’s income from which an Expected Family Contribution (EFC) number will be calculated. On the basis of this a decision will be reached and a grant either made or refused.
As the name suggests, a Pell grant is a gift and not a loan and there is no need to repay it. Pell grants are currently for a maximum of $4,731 annually (based on your assessed financial need) and, while this will not normally meet the total cost of your college education, it will be a great help. Nonetheless, a lot of students will need to seek loan funding in addition to a Pell grant and probably the best form of loan funding initially is a Stafford college loan.
There are presently two types of Stafford loan and the first of these is a subsidized Stafford loan on which the government pays any interest charges while you are in full-time study and for up to six months following graduation. The other form of Stafford loan is an unsubsidized loan on which you will be responsible for making all interest payments.
You will need to consider unsubsidized Stafford loans with great care because, while you will have to make interest payments, you will not be required to do so while you are in full-time study and for a period of up to six months after graduation. This said, during this period interest will still be applied to any loan and will simply be added to the outstanding amount of the loan. This means that on a standard three or four year course your debt can grow significantly.
Of course, a lot of students prefer to take out an unsubsidized Stafford loan but loans are granted according to the funds available and on the basis of need so that only a small number of students will qualify for a subsidized loan. However, the good news is that almost all students qualify for unsubsidized loans and, in spite of their disadvantages, they still represent one of the best types of college loan funding available nowadays.
There are of course other types of grant and loan funding available and you will have to look around to see precisely what is available and best meets your circumstances. For students from low-income families however both Pell grants and Stafford loans are undoubtedly the best way to go when looking for college funding.
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