Finding The Best No Credit Check College Loans
A lot of college students today run into trouble before they even start when it comes to getting together the funds necessary for college because they have already managed to run up a bad credit history. Fortunately however there are a number of aid and loan packages available which look chiefly at need and ignore your credit record. So, this is where you ought to begin your search for funding.
One of the oldest sources of funding and one which is chiefly available on the basis of financial need is the Pell grant. Provided the student and his family are classed as a low-income family a Pell grant is all but automatic and a grant is made on the basis of the submission of an application and supporting documentation.
A student will be required to furnish proof of the cost of his intended course (including not only tuition fees but also other qualifying costs) and will also need to furnish evidence of the family’s income from which an Expected Family Contribution (EFC) number will be calculated. On this basis a decision will be taken and a grant made or refused.
A Pell grant is a gift rather than a loan and there is no need for repayment. Pell grants are currently for a maximum of $4,731 annually (depending on an assessment of financial need) and, though this will not normally meet the full cost of your college education, it should help considerably. Nevertheless, the majority of students will need to seek loan funding in addition to a Pell grant and the best form of loan funding initially are Stafford student loans.
There are currently two forms of Stafford loan and the first is a subsidized Stafford loan on which the government pays any interest charges while you are in full-time study and for a period of up to six months after graduation. The other type of Stafford loan is an unsubsidized Stafford loan on which you are responsible for making all interest payments.
You will need to think about unsubsidized Stafford loans with great care because, while you are responsible for making interest payments, you will not have to do so while you are studying full-time and for up to six months following graduation. However, during this period of time interest will be applied to any loan and will simply be added to the principle amount of the loan. This means that if you are on a three or four year college course your debt can increase substantially.
Not surprisingly, the majority of students would prefer to have an unsubsidized Stafford loan but loans are granted according to the funds available and on the basis of need so that only a few students qualify for a subsidized loan. The good news however is that most students qualify for an unsubsidized loan and, in spite of the shortcomings, they nonetheless represent one of the very best types of college loan funding available nowadays.
Naturally, there are other forms of loan funding available and you have to look around to see exactly what is available and what best suits your needs. For students who come from low-income families however both Pell grants and Stafford loans are without doubt the best choice when looking for money for college.
Tags: scholarship, college grants, , college loans, college funding, pell grants, student loans
