Easy access to student loans without credit history and co-signer

Is your dream of pursuing a professional course being destroyed because of unavailability of loan? Absence of co-signer and credit history must be stopping you from applying for loan. Well, you can get a loan even at this condition; the only thing is that your options will get minimized.

The tips mentioned below will help you to get easy access to loans:

• Search for federal student loans as most of them do not require a credit check.
• Do remember to fill up the free application for Federal Student Aid (FAFSA). FAFSA will help you in receiving loans as it is an integral part of securing government loans.
• One can also apply for Stafford loans which are specially designed for needy students. It is perfect for those who don’t have a co-signer, credit history and at the same time belong to low-income strata. However, the amount granted may be small but at least you will be able to kick off your study.
• Similarly, Perkins loans are designed for students who are in great financial need. The best part of this loan is that the interest rate is only 5% and also the repayment terms are longer than that of Stafford loans.
• Non-traditional students only qualify for Stafford or Perkins loans but at the same time there are many grants and scholarships available. One can use them to complete his/her education.

Thus, you can get loans to complete your studies and pursue for other professional courses. You have fewer options but still you can utilize them to the fullest. There are private loans available but it is better if you keep them as the last resort.

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Be Proactive and Secure a Good Loan Repayment Plan

Student loans are necessary when one is planning for a higher degree. Not only do they provide the student wit the peace of mind that they do not have to earn their tuition while they are studying and can focus their attention completely on their studies. Once they graduate and get a job they will be able to pay off the loans.

However, the times are changing and the graduates are not as confident of getting a good job as they used to be. The job market is at its all time lowest and a number of graduates are extremely under-employed. Therefore, their loans are remaining unpaid and are becoming defaulted. The consequences that include a lowered credit score and wage garnishment among a number of others have a lasting impression on the finances of the defaulters.

The best way out of a defaulted student loan is to make the repayment arrangements in time. For those who are finding it hard to manage the monthly installments can go for the innumerable repayment options. They are the only way in which you can keep the collection agents at bay and also pay off the loan with ease.

The repayment options are only good as long as you have not defaulted on the loans. So, you have to contact the loan lenders or the loan servicers when you realize that the installments are becoming too much to handle for your finances. You might find good offers if you hurry and contact the lenders pro actively.

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Repay Loans on Time to Avoid the Consequences

The present student loan situation has often been compared to the housing loan bubble that took place some years back. A number of house owners who defaulted on their home loans had to hand over their house keys to the lenders.

In the case of the student loan defaulters however there is no such chance. But they will have to face a number of other consequences that are equally bad. Given below are some of them.

Wage Garnishment
The lenders can get the permission to garnish about 15% of the defaulter’s wage in order to repay the loan. This will be quite a burden for those who have a low wage job and a number of responsibilities.

Low Credit Score
A defaulted loan means a low credit score and less chances of financial assistance in future. But in the case of a defaulted student loan the effect is serious as the borrower is usually a student who is just starting out his/her life.

High Interest Rates on Future Loans
With a low credit score, the interest rates on the future loans, if you get them, is going to be inordinately high. Another problem of a low credit score is that you won’t get a good deal when you consolidate the loans.

Interception of Federal Benefits
There are a number of federal benefits that one is entitled to. But with a defaulted loan in the record the lenders can intercept them along with the tax refunds.

Collection Harassment
The collection agents come on to the scene the moment a loan becomes defaulted. You will have to pay the loan in full along with the additional charges that are applied.

Therefore, an unpaid loan can bring along a host of troubles. So, the best way out is to pay the loans off in time and save your credit score from dropping.

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