Five loans a student can get with no credit history

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Five loans a student can get with no credit history

Five loans a student can get with no credit history

By
Add to Favorites:

There are many courses, especially professional courses, which have very high course fees. A student with a moderate to poor financial background is often unable to afford the high course fees. Apart from the course fees, there are lots of expenses towards text books, laboratory fees, practical classes and stationery which could be quite high for some courses. A student might want to take an additional certification or external evaluation which often cost a lot. Then there are the non academic expenses which cannot be done away with - lodging, boarding, conveyance, laundry etc. Adding up all these expenses, it might so happen that the student doesn`t have enough money. It is during these times that a student might require financial aid.

Why no credit history is bad for a student

A student looking for a job straight after college is usually not considered for most jobs because of his lack of prior work experience. Similarly, a student with no previous loans is unable to get a new loan because he has no credit history by which a prospective lender can assess his creditworthiness. There are no repayment histories, records of cheque bounces, statement of loans etc. on a car loan or home loan or personal loan which can give an idea about the worth of the student. In this case, no credit history is as bad as a poor credit history.

Student loans available with no credit history

Many courses have the option of applying for grants and scholarships and if a needy student can get that then he might not need a loan at all. But if a loan is inevitable, the best way for a student is to apply jointly with a co-applicant who has a credit history. If the co-applicant has a credit score of 700 and above, then it increases the chances of his co-applicant getting a loan in spite of being a student with no credit history. But if he has no co-applicant, then he could try any one of the following five loans:

  • Stafford Loans, which are designed for the poorest of poor students.
  • Perkins Loan, which is a credit free aid package offered in campuses.
  • State Student Loan Offers, which are handled by respective state governments.
  • PLUS, which stands for Parent Loans for Undergraduate Students.
  • School Certified Private Loans

A student must look into the comparative features and pricing of these five products according to the state he lives in and make his choice accordingly. He could either look into appropriate websites or ask people who have availed of these loans earlier.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading