Direct Loans Student Loans – No Credit Student Loans

When applying for certain types of student loans, credit history for students is not required. These loans are:

Federal Stafford Loans

There types of loans can be either unsubsidized or subsidized, and they are distributed as Direct Loans or Federal Family Education Loans, also known as FFELs. Many schools take part in both programs.

Subsidized loans were created to assist students that are in need of loans with low interest rates, and this need is decided by regulations set by the federal government. With a loan such as this, the borrowers is not required to make payments on interest while they are enrolled in classes at least part time, or during their periods of deferment or grace.

The Federal government provides Stafford Direct loans, and the Stafford FFEL loans are backed by private banks that choose to take part in the program for FFFELs.

Federal Perkins Loans

These loans have low rates of interest, and are offered to individuals after looking at their personal financial situations. Students that are not able to pay the Stafford Loans interest payments are often offered a Perkins loan. This loan is provided to schools that choose to be a part of the Federal Perkins Loans program, which has a main goal of promoting the importance of a college education to students in America.

Consolidation Loans: This includes unsubsidized and subsidized FFEL and Federal Perkins, Direct Stafford , SLS, Federal Nursing, and Health Education Assistance Loans. This process of combining multiple loans into one monthly payment with one fixed interest rate is called consolidation. The idea behind this is to help individuals manage their payments for multiple loans, ensuring that they will not fall behind or default on any. Note that education loans through private lenders are not able to be consolidated by using federal loan consolidation practices.

FFEL PLUS Consolidation Loans

Guardians and parents that would like to help finance their child’s education can apply for a FFEL PLUS Consolidation Loan, which does not require a credit check. On the other hand, the Direct PLUS Consolidation Loans, will reject anyone with a poor credit history and score .

Student Loans that need to have credit checked

  • PLUS Loans for Professional Degree and Graduate Students: Students that are in professional or graduated programs have the opportunity to finance these expenses by using both the FFEL and Direct Loan Program. These loans are very close in terms to the Parent PLUS loans.
  • Federal Parent PLUS Loans: FFEL PLUS and Direct PLUS loans are granted to guardians and parents with good credit who would like to provide assistance to college costs .
  • Private Student Loans: To be approved for a private student loan, a good credit history and score for the student is very important. In these cases, future earning potential and their ratio of debt to income are factored in to the final decision for loan approval.

 

 

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