Student Loans No Credit History Required

Many people require financial aid in order to enroll in college and earn a degree. They may be recent high school graduates or older students who are returning in order to complete the hours needed for an undergraduate degree or work on an advanced degree. Nontraditional students, or older returning students, may be seeking a degree in order to advance in their present jobs or to change careers entirely. Although grants and scholarships may be available, most prospective students are going to be looking for the door that says "Student loans, no credit history required."

Two of the best options behind the "Student loans, no credit history required" door are federal loans. One of these loans is the Federal Stafford Loan. Stafford loans can be subsidized, meaning that the loan is based on need, students do not have to begin repaying the loan until six months after they graduate, and the government pays the interest on the loan while the student is still in school as well as the six months grace period after graduation. The other type of Stafford loan is unsubsidized. Anyone can get this type of loan and like the subsidized Stafford loan, there is a grace period of six months before the student has to begin to repay the loan. However, interest begins to accumulate as soon as the money is dispersed to the student. Students may choose to begin pay interest immediately or defer payments and bundle the interest payment with the loan payment.

Students who have great financial need can apply for the Perkins Loan. This loan is available to undergraduate and graduate students who can demonstrate great financial need. Although this loan is underwritten with government funds, the college or university is the lender. A low interest rate is charged, currently 5% (December 2009), and students do not have to begin repaying a Perkins Loan until 9 months after they graduate or drop to less than half time status. These loans can be the best options for a student who must open the "Student loans, no credit history required" door.