Student Loans With No Credit Check

Today the education is starting playing more important role for youth. In fact, it was one of the main areas of lives influencing all other areas: career, wealth, success. However not all students knew it for come reasons and today people start realizing it more and more.

It's obvious that student loans as a part of college funding opportunities became preferable options. People want to know more about education loans and how to apply for them. One of the main questions nowadays: "Are there no credit check student loans?". Typically this answer is asked by potential borrowers with bad credit score or no credit history. And the answer is: no credit check student loans are real.

There are student loans without credit check and these loans are known as federal student loans. Loans by the federal government are need-based loans offered through Direct Loan Program. It's not necessary to have credit history at all in order to be eligible for this type of aid. In fact, a borrower can even have a bad credit score, it's not a problem. The reason why these loans are no credit check loans lies in the nature of origin. They are created to help people regardless of level of income: whether you and your family have very high wage or not.

So, people looking for student loans with no credit check should understand that these loans are called federal student loans. The application process is quite simple. The number one step is to fill out the Free Application for Federal Student Aid correctly. It has various fields and it's necessary to spend a lot of time on each one. However it's an imperative step to do. The second step is to receive an Award Letter containing information on federal student aid available for you. There will be all information you need: amount of funding, federal student aid type and more.

Private Student Loans With No Credit Check

There are also private loans for students, also known as alternative. Another popular question among students is: "Are there private student loans with no credit check?". The truth is, there are no such loans. There is a myth that they really exist and people can apply for them easily. However the practice shows that it's impossible to qualify for a loan with bad credit history.

The main reason why private education loans do require good credit score and are not credit check free lies in the nature of origin. These loans are dealing with credit-worthiness. It means that it doesn't matter if you have financial need or have financial problems, you have to have perfect credit history to be eligible for. Private loans are offered by private lenders: banks and other financial institutions. These lenders are commercial companies focusing to make profits. They are not focused on social function as the government does. So, it's obvious that having a good credit history is the main requirement to get approved.

In the end, there are federal and private loans. Only federal loans can be considered as no credit check loans and it's a fact.