How To Apply For Student Loans

How To Apply For Student Loans Without Credit Check

Student loans are probably more reliable and credible than taking a part time job to cover your education fees. By having a longer term effect and higher amount of money, student loans will spare your from nightly work shift that will cause poor academic performance.

Student loan is the borrowed money to cover your academic necessities as well your daily living expenses such as travel expenses, food and shelter. Student loans gain relatively lower interest than most of its counterpart. It comes in two different types such as federal loan and the private student loan.

Federal student loan is the service offered by the federal government to help students in considerable great need to pay for university fees. Private student loan on the other hand is the type of loan offered by private financing companies and institutions that are mostly backed and owned by big corporate owners.

However, private financing companies seem to think that students are high - risk costumers that they will intentionally raise interest rates to discourage the borrower to prevent failure of debt repayment. Most of the time, they will also delve deeper in the borrower's credit history and will conduct credit check.

If they find the borrower's credit history pleasing enough, they will require the borrower to present legal documents and other evidence to prove that the credit history is genuine enough. On the other hand, if the borrower has modest or has no credit history, they will be requiring a cosigner. A cosigner is a reliable person that can be your parents or relative that will help you shoulder your debt repayment responsibilities when it takes place. This is an assurance for the financing company that you will do your part in repaying the loan you made from them.

The worst can happen when a financing company declined you of your loan application. This only mean that they are not pleased with your credit history or the credit check implies that they are unconvinced that debt repayment will be successful.

When this situation arises, the best thing to do is to fix your credit history through the services offered in your university and look for other loans that will not require credit check. This is the time when you have to look back to federal student loans.

Federal student loans such as Federal Stafford and Federal Perkins will definitely compel you to pass requirements or documents to prove of your good credit history. The former will only require you to finish your education and claim your diploma before you repay them of your debt. The total amount you can borrow from federal Stafford loan is a maximum of $ 20, 500 that gains 4.5% interest per year. The latter, the Federal Perkins loan is offered to students of great request of financial support. It gains a fixed interest rate of 5% annually and debt repayment will matter on flexible options agreed between the borrower and the loan provider.

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