More and more students are turning to private student loans to pay for the costs of attending college, and while many students do put in the time to learn what they are getting themselves into, a good proportion of them do not. One of the more common questions students have when it comes to private loan funding is in regard to the existence of non credit based private student loans, and whether or not there are private college loans in today’s market that are not dependent exclusively on credit scores, and credit history. The simple answer is no, all private education loans are based off of personal credit scores and credit history, and therefore the existence of non credit based private student loans is really a closed subject.
There is one caveat however, and this is one that almost every student understands before they go into apply, although it does warrant some attention. The only way to get a private student loan if you have bad credit, or no credit is to apply with a credit-worthy cosigner that can substitute their credit information for yours. This is how the majority of students actually get approved for private loan funding due to the fact that the greater portion of college students in this country don’t have a substantial credit history or significant income.
Students then wonder about other kinds of specialized private student loans such as no cosigner private student loans, no credit check private student loans, and even bad credit private student loans. The real truth when it comes to all of these is that they don’t really exist in today’s credit market, and while they may have existed a few years ago when the lending community had much looser regulations and requirements for borrowers, they simply aren’t present in today’s market anymore. The only kind of student loans that don’t require a cosigner, are non credit based, and can be made to individuals with bad credit and without a credit check are federal student loans, and these should not ever be confused with private student loans.
If you have bad credit and cannot come up with a credit-worthy cosigner, you should always look to federal student loans to see just how much funding you can get with the submission of your FAFSA. By submitting a FAFSA application on time, and in a complete fashion you can almost guarantee yourself of at least getting a few thousand dollars in federal aid by way of federal student loans, or even certain kinds of federal grants or scholarships. Submitting a FAFSA is easy to do, and one you send it in is pretty-much a hands-off process from then on. Federal student loans are actually better loans to have when compared to private student loans due to the fact that they have lower interest rates, and more flexible repayment terms. The bottom line is that you should always exhaust your federal financing options first before you look to any sort of private funding options, and always remember that private education loans are always going to be based off of your credit profile, and therefore the search for non credit based private student loans is only going to leave you scratching your head.
