Five loans a student can get with no credit history
Advertising Disclosure is an independent, advertising-supported web site. 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. 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

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 to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading