Nowadays attending college seen as one of the largest investments student loan borrowers will make in their lifetime. If you need to secure a student loan, yet are without any credit history or co-signer, what are your options?
Students heading to college need know what options are out there and which one is best for their situation.
The first stop in the student loan process should always be the federal government student loan program known as the Free Application for Federal Student Aid (FAFSA). However, often students and families still need money to cover the cost of attendance, which will lead them to applying for private student loans. During their search many will discover they do not qualify for a private loan as a result of bad credit history or no credit or lack of a co-signer. For students under this category, it is important to know all your options when searching for loans. Borrowers should start with finding lenders located in their area, take a moment to compare rates and quotes and then make an informed decision on which loan is best for you.
Additionally, there may be some private student loans that don’t require a credit check. These private loans without a credit check are known to have above average interest rates and offer no affordability or method to savings on costs for college. Most private lending institutions who are assisting student loan borrowers with check credit history or require a co-signer with a good credit record that can sign on your behalf.
Before moving forward in your quest for securing a student loan keep in mind that lending institutions for private student loans will be strict in lending just any student a private student loan, and if they do offer a loan it will be at a high percentage interest rate.Therefore, federal student loans are your best choice when you need a student loan without having credit history.