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Can You Get Student Loans Without a Cosigner?

The majority of students today use some sort of financial aid to pay for their higher education. There is a large number of private student loans available for college students and they are suitable option of financial aid in some cases. They can have unlimited loan amount and can cover up to the total cost of your education. But, private student loans are credit-based and since most of the students don’t have established credit history at the moment of application, this type of student loans requires you to have a cosigner on your application. Private student loan without cosigner is almost impossible to get if you don’t have credit history or have a bad one. No private lender will approve you in case you have bad credit or no credit history and this is why you’ll need a cosigner when you apply for private student loan. You can apply for private student loan with no cosigner only in case you are working and have a good credit score. Applying with a creditworthy cosigner will significantly increase your chances of being approved and can speed up the applying process and private loan approval. It will also help you be eligible for the lowest interest rates offered because the most of private loan lenders will calculate your loan rate according to your credit situation (in this case the credit situation of your cosigner).

Note: You should be cautious when you are offered private student loan without cosigner, since there are many no-cosigner lenders who offer no credit check loan but actually offer some type of personal loan or even a payday loan. Given to their terms and interest rates, these types of loans are not appropriate for students and you should stay away from them if possible.

Federal Student Loans

Although some may argue that the application process for private loans is more simply and there is no limit on the loan amount you can get, the first option that should be considered when applying for financial assistance is aid provided by federal government. There is a wide variety of federal financial aid options for students available and they are based on other factors than credit history and can be obtained with no cosigner. You can get federal student loan or some other type of federal student financial aid like scholarships or grants regardless of you have bad credit or even have no credit history at all. Some other eligibility requirements must be satisfied, though, if you plan to apply for student loans funded by U.S. federal government’s Department of Education.

Financial Need – How to Demonstrate It?

Most federal student loans are based on the borrowers’ financial need. To find out can you claim financial need, you should subtract the amount of Expected Family Contribution (EFC) from Cost of Attendance (COA).

Expected Family Contribution or EFC is based on family income: the lower your family’s income is, the lower will be your EFC and the higher your financial need will be. EFC is used as an indicator of your family’s ability to finance your education-related expenses. Other factors that have effect on EFC are the following: number of family members; size of your household; whether you are still dependent child or not; the number of family members attending post-secondary institutions. Your EFC will be calculated after you fill out the FAFSA and will be reported to you via your SAR (Student Aid Report). Once you have become eligible for federal financial aid, you will be able to acquire student loans without cosigner.

Stafford and Perkins Student Loans

There are two federal student loan options offered to students who can demonstrate the appropriate level of financial need. These two include Perkins Loan and Subsidized Stafford Loan. The other type of Stafford Loan, Unsubsidized Stafford Loan is not based on financial need and you can obtain it regardless of your financial need.

Stafford Loans are available at most schools in the U.S.A. that participate in the federal financial aid program, while Perkins Loan is only available at selected schools in the country. Perkins Loan is strongly based on financial need and only you can apply for this type of federal loan if you can demonstrate the highest level of financial need.

The Subsidized and unsubsidized Stafford Loans are offered directly by the Department of Education, and no longer from private lenders as a part of the FFEL Program (as from introduction of Student Aid and Fiscal Responsibility Act of 2010). The subsidized type of Stafford Loan will not accrue interest while you are in school, while the unsubsidized version will. Both versions of Stafford Loan have fixed interest rate.

If you apply for private student loans, your credit score is going to be used by the loan lenders to determine do you qualify for private student loan. Nearly all of private loan lenders offer loans based on borrower income and credit score and if those conditions are not met, it is very difficult to find a private loan lender that will approve the loan application. However, if you meet the requirements for federal financial aid offered by the U.S. government, you can obtain student loans regardless of your credit history and with no cosigner needed. These are the loans that you should take advantage of before you look into applying for private student loans. By submitting the FAFSA by the deadline (Jun 30th for upcoming school year) you can make yourself eligible for federal loans with no difficulty.

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The Most Popular Student Loan Options Today

The Best Student Loans Overview

Due to a wide variety of student loans available, higher education is accessible to a large number of people today. No matter if you are just at the beginning of your post-secondary education or you are returning to college to upgrade your degree, you can choose one of numerous options of financial aid offered to college students. Maybe you are a parent who is looking for financial assistance in paying for child’s education; there are some affordable loan options that you can opt for too. The loans for students and parents are available from the U.S. federal government, Department of Education as well as from a large number of private student loan lenders. The application process for student loans is very simple and easy and it can be completed online. It takes only a few steps and the first and most important is to complete the online FAFSA application (FAFSA stands for Free Application for Federal Student Aid). In addition to easy application procedure, you also have the opportunity to compare different student loan alternatives and their rates online, to make your payments when you start paying off your loans and to have approach to your account at any time.

There is a great deal of information on best student loans available today and it is important to carefully read all about existing loans so that you can choose the best financial aid option for you. Here are some of the most wanted federal and private student loan options available for paying for higher education today.

Federal Student Loans

Given the fact that student loans provided by the U.G. federal government are not based on your credit score, which means that they do not require you to have a cosigner, a job or any kind of regular income to qualify, they are very popular among students. In addition, many of federal student loans are based on student’s financial need, they offer six months grace period after student lefts school and they have different flexible repayment alternatives and low fixed interest rates. Different from private student loans, federal loans have limited loan amounts.

Eligibility Requirements

To qualify for this type of federal financial aid, you must be enrolled at least half-time at post-secondary educational institution that participates in Federal Family Education Loan Program, you must be a U.S. citizen or permanent resident and must proof financial need.

Types of Federal Student Loans

Federal student loans include: Subsidized Stafford Loans, Unsubsidized Stafford Loans, Perkins Loans and Direct PLUS Loans. There is also the Student Loans Consolidation option available.

Subsidized Stafford Loans

Subsidized Loans which are offered to students in economic need, and their interest is subsidized while you are in school which means that they come without charge of interest during the time you are enrolled in school and during grace period and authorized deferment periods.

Unsubsidized Stafford Loans

Unsubsidized Loans are not based on your financial need. You can opt for alternative of paying the interest while you are still in college or university as well as during grace period and deferment period or you can decide to agree for the interest to be added to the main amount of your loan. Keep in mind that with this option the total loan amount you have to pay back will be higher.

Direct PLUS Loans

Direct PLUS loans are available for parents of dependant students under 24 years of age who are either the U.S. citizens or permanent residents. In addition, parent needs to be the biological or adoptive parent of the student and the student must attend an educational institution participating in the Direct Loan Program at least on half-time basis.

Student Loans Consolidation

In case you find it hard at some point to pay back your different student loans, you can apply for student loans consolidation option that allows you to take one loan instead of several others (to consolidate multiple loans into one) and make one monthly payment instead of  numerous payments.

Application Procedure

After you collect other required documentation you have to fill out the FAFSA which is the universal application for all types of federal financial aid for college students.

Private Student Loans

The main characteristics of private student loans are that they are based on the borrower’s credit score, they are provided by different private lenders like banks or organizations and you can apply direct via lender’s application, they have various interest rates and limited repayment benefits and they have unlimited loan amounts available. Private student loans are a suitable option in case you have exhausted other loan options or if you do not qualify for federal loans. To be eligible for private student loans you have to be enrolled in school that participates in FFELP at least at half-time basis and you must be a U.S. citizen or permanent resident.

Some of the most popular private student loans include Sallie Mae, Wells Fargo and AES student loans.

Sallie Mae

Sallie Mae or SLM Corporation is one of the largest student loan lenders in the U.S.A. with different loans alternatives offered to undergraduate, graduate and professional students. The most popular Sallie Mae loan options include Smart Option Student Loan (for undergraduate and graduate students), Career Training Smart Option Student Loan (for undergraduate students), residency and Relocation Loans and Bar Study Loan (for graduate students).

Wells Fargo

Besides loans Wells Fargo Company offers investment, banking, mortgage, insurance and other consumer financial options. The main benefit of borrowing from Wells Fargo is that interest rates on your loan will be reduced if you make regular payments and there are no charges applied for application, origination and loan repayment.

AES Student Loans

AES provides management services for both federal and private loans, such as Federal Stafford Loans, Parent Plus and Graduate Plus loans.

Other types of financial aid available today include scholarships and grants for college students.

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Information on Nelnet Student Loans

Nelnet student loans are one of the numerous U.S. private student loans. Nelnet works together with the Department of Education, helping college students to pay to their tuition and other education-related expenses and to achieve their educational goals. Nelnet has favorable and simple terms and application conditions and are among the most popular private student loans because of their low interest rates.

Nelnet Student Loan Servicer

You can borrow your student loan directly from the Nelnet, but they also provide customer service for other lender’s loans, including student loans issued by the Department of Education. Nelnet provides customer service on your account if: you borrowed money directly from them, if Nelnet services your Direct Federal student loan borrowed from the Department of Education, your lender selected Nelnet to service your loan, sold out your loan to the Department and selected Nelnet to service the loan or in case your lender sold your loan to Nelnet and Nelnet is now the owner and servicer of the loan.

Nelnet Student Loans Eligibility Requirements

To qualify for Nelnet student loans, you must meet the following eligibility requirements:

  • You must be enrolled in an eligible school at least on half-time basis;
  • You have to apply with the creditworthy cosigner;
  • You as a borrower, as well as the cosigner must be at least 18 years old;
  • You must be a U.S. citizen;
  • You should not have any of your student loans into default and no bankruptcies for the previous 7 years.

Nelnet Student Loans Benefits

The main advantages of this private student loan option are favorable borrowing terms and conditions. Furthermore, applying with a co-borrower may increase your chances of getting the loan and help you to save some money. In addition, Nelnet offers the loan consolidation program which allows you to replace multiple student loans with just one and to make one singly payment a month which will decrease your monthly repayments.

How to Apply

To qualify for Nelnet Student loans you will have apply by to filling out the FAFSA (Free Application for Federal Student Aid) application. You will need to file in a new FAFSA after January 1 each year you go to school.

Nelnet Student Loan Stages

During your student loan’s life, from the time you take it out to the time you pay it back, there are generally three stages: in school period, grace period and loan repayment period. Borrowers of the Federal Stafford Loans typically go through these three stages. Borrowers of other student loan options such as parent PLUS loans or GradPLUS loans for graduate and professional students have somewhat different experiences.

However, your school will work directly with Nelnet to make sure your lender knows which stage you are in. Your servicer will be in touch with you and communicate based on your needs at that time. To help you understand the student loan life process, there is an overview of the stages of the student loan life cycle below.

Federal Stafford Loan Stages

In School Period

No payments are required during your period in school, as long as you are enrolled att least half time, which could take two to four years.

Grace Period

After leaving school, you’ll be provided six months grace period. This period is intended to help you get ready to make your student loan repayment, by finding a job or fit the loan payment in your budget in other way.

Repayment Period

Repayment period can take one to twenty years. In general, Stafford and PLUS loans must be paid off within 10 years from the start of loan repayment. Nevertheless, a grace period, periods of postponing your payments due to deferment or forbearance, and  time  when the payments weren’t due (while you were in school)  will not count toward the 10-year repayment term. You may extend the repayment term if you meet the requirements for the Extended Repayment plan, Income-Based Repayment plan, or Income Contingent Repayment plan. On a consolidation loan, the repayment period may extend up to 30 years depending on the initial balance of the loan.

Federal GradPLUS Loans

Federal GradPLUS loans are loans for graduate and professional students. There are no payments required while you are enrolled in school at least half time, but you can make early payments if you like, there is no early payment penalty. Also, you’ll enjoy six months deferment period after you graduate or drop below half-time student status (for GradPLUS loans loan postponement is called a six-month deferment, not grace period). You’ll receive your monthly student loan billing statement about three weeks before your payment is due. When you start making payments, your Nelnet student loan is considered to be in repayment.

Federal PLUS Loans for Parents

Federal PLUS student loans are designated to parents of dependent students to help them with their child’s education costs. PLUS loans are typically disbursed in groups of funds directly to the school, usually in two installments, half during a fall semester and the other half during spring semester.

At the earliest, your first PLUS loan payment would be due 60 days after the school receives the last set of funds. Although Federal PLUS Loans don’t have a grace period, you can postpone payments while you or your student is in school—but note that the loan will continue to accrue interest. Nelnet servicer is going to send your monthly student loan billing statement about three weeks before your loan payment is due. When you start making payments, your loan is considered to be in repayment.

Nelnet Student Loans Forgiveness Options

Teacher Loan Forgiveness Program

Nelnet student loans offer loan cancellation option for teachers for Federal Stafford loan borrowers with the intention to support growth of the teaching profession. You can qualify for this loan forgiveness opportunity if you teach full-time for at least five consecutive academic years in so called low-income schools that serve low-income families. You may qualify for up to $17,000 of student loan with this loan cancellation option.

Public Service Loan Forgiveness (PSLF)

If you work in public service, you may be eligible for cancellation of your remaining federal student loan balance after making qualified 120 payments made under the Income-Based Repayment Plan, Income-Contingent Repayment Plan, or the Standard Repayment Plan. Eligible loans for this forgiveness option include Direct Stafford Loans (subsidized and unsubsidized), Direct PLUS Loans (for parents and graduate or professional students), and Direct Consolidation Loans.

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Exploring AES Student Loans – What You Should Know

About AES Student Loans

American Education Service or AES is a loan servicing company that provides student loans to students or their parents to assist them in financing college education. AES student loans are offered by the U.S. government through the Federal Family Education Loan Program (FFELP). To be able to use services offered by AES, you have to register online and after that you can take advantage of their numerous helpful alternatives that include: loan repayment, account administration, options for the loan deferment and various additional tools. With convenient online applications, AES makes the complicated process of student financial aid management easy. AES offers management services for both federal and private loans, such as Federal Stafford Loans, Parent Plus and Graduate Plus.

Eligibility Requirements

To qualify for AES student loans, an applicant needs to be a US citizen or eligible non-citizen. Furthermore, the borrower must be enrolled in school that participates in the FFELP at least at half-time basis and he must not have previous education loans. Students whose loans are into default are not eligible.

To get one of the loans through AES, you have to fill out the FAFSA (free Application for Federal Student Aid).

AES Student Loans Benefits

The main benefit of AES student loans is that it makes the complicated process of applying for student financial aid and private student loans more convenient for students and their families.  All affordable types of student loans can be obtained through the online applications of AES. AES assists in the whole borrowing procedure, from loan application to loan guarantee, from choosing loan repayment schedules and repayment modes to actual loan payment.

Secondly, the interest rates are low and vary from 5.6% to 8.5%, depending on a loan option. In addition, there is a six-month grace period offered. Also, there is no penalty for early paying off a loan early.

Additional advantage is the ability to administer the whole user account. It’s valuable option because it’s simple. For instance, when a client logs in, he or she is able to see the overview of an account, she can make payments or read important notification. He could also keep informed about your loan details, view loan rates and check the loan balance.

Ways to pay AES loans and Repayment Options

There are different ways of paying off your AES student loan available, and the following three are the most common: direct debit, internet payments and check payments.

Direct Debit

Direct debit is the most convenient way to make your student loan payments. Automatic electronic transactions imply your payment is always on time, so you don’t have to worry each month would you make your payments on time.

Internet Payments

You can authorize a one-time electronic loan payment to your account. You can do this by using your account numbers and your banking institution’s routing number.
You should note that this is a one-time payment; using it does not authorize an electronic payment every month.

Check Payments

You can choose to mail your check or money order to AES’ payment servicing center. Be sure that you include your AES account number on your check.

There are also five different repayment plan offered for federal student loans borrowers.

Federal Loan Repayment Options

Repayment plans for federal student loan borrowers include: Level Plan, Graduated Repayment Plan, Income-Sensitive, Income-Based (IBR) and 25-Year Extended loan repayment.

  • Level Repayment Plan – This plan allows you to make smaller monthly payments and the monthly repayment amount remains the same throughout repayment period.
  • Graduated Repayment Plan – the monthly payment is usually interest-only for a certain time and it varies during the repayment period.
  • Income-sensitive Repayment Plan – The monthly installment is based on borrower’s monthly gross income and student loan debt.
  • IBR Plan – The monthly repayment is based on borrower’s monthly income and its family size. IBR helps borrowers who may be experiencing financial hardship to deal with their monthly payments.

Teacher Loan Forgiveness and Discharge

ABS student loans provide partly or full loan forgiveness options for teachers who have been working for at least five consecutive academic years on full-time basis in low-income schools.

There is also a loan discharge option available. You may qualify for discharge if your school is: closed; have signed your name without your authorization; failed to pay a tuition refund or untruly certified your ability to benefit from education.

Student Loans without Cosigner

AES student loans offer a no cosigner student loan option. Student Loans without Cosigner alternative is available for students who have an established credit record and a good credit history.

It is unusual for students to be eligible for private student loans without a cosigner, since most students lack a good credit score or have no credit history, but there are few ways for students to find a private student no cosigner loan options, so in case you have established your credit record and have a good credit score, you can try to get a no cosigner student loan.

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Guide to ACS Student Loans and Things to Consider

About ACS Student Loans and Application Process

There are numerous student financial aid options available for college and university students in the USA and millions of students every year apply for student loans, grants or other types of financial support. If you are student looking for the best private student loan option for you, then you should consider applying with ACS Student Loans which can help you to find the suitable loan plan for you in order to pay your educational related expenses in the easiest way.

Affiliated Computer Services or abbreviated ACS is in essence an online financial assistance service that can catch potential borrowers (students) with the most appropriate lenders (e.g. the US Department of Education) for their particular financial need connected to their education. It is a company with more than 20 years of experience providing information technology services.

ACS has extensive experience in providing assistance to student loan borrowers through numerous government and private student loan programs. ACS clients comprise government, private lenders and institutions of higher education and they provide support to more than 450,000 college and university students. Applying for student loan with ACS is very secure way to obtain a student financial aid, since they have rigorous student loan scam prevention measures.

When you apply for the educational loan and after your student loan application is approved by the federal government or the private loan lender, it is obvious that you will have to pay off your loan after a period of time. ACS student loans are of assistance in repaying process by providing access to their online tools. In fact, one of the most advantageous features of a borrowing ACS is the online application that is available to students through their user friendly website. Borrower can view his or her loan details online, make payments online, and numerous other things that can be done in the most convenient way.

Online Payments

One of the most beneficial functions available for ACS users is ExpressPay system which is purposely created for making online payments and it is very easy to use. After creating your account you just have to log in and you can easily make online payments.

Notification

Notification is another useful feature. ACS will let you know when the time is to start paying off your student loan which will ensure that you start your repayments on time.

Deferment Assistant

ACS developed Deferment Assistant program to make the repayment process easier and to prevent going your student loan into default. This is confidential and secure service and it enables you to apply online for deferments and learn in reasonable period of time whether you qualify.

ACS allows you to apply for and submit an on-line forbearance and deferment in case of unemployment online simply by using your e-Signature.

The other useful services available with ACS include: Inbound/outbound communications with students, Transaction Processing, Document and Workflow Management, Document and information collection, payment counseling, Default aversion, etc.

ACS Student Loans serve both, federal student loans like Federal Stafford Loans, Perkins Loans, etc. and private student loans like Penn Guaranteed Loans, Key Bank Private Loans, JP Morgan Chase Private Loans and etc.

In order to apply for ACS student loan, the first thing you should do is to complete a FAFSA application form to help the Department of Education estimate how much financial aid you might be eligible for. It also helps them determine if you qualify for other forms of student financial aid such as college grants. After applying you will get the SAR or Student Aid Report with your FAFSA results and details on your eligibility, amount of loan you are going to receive and other important information on your student loan application. Than you can begin looking for the best loan provider for you, which can be one of the federal loan plans, private lending agency, college or university. ACS will summarize all the details and make it clear what the best alternatives are according to particular requirements.

To sum up, ACS is not a student loan lender, it is an online financial service that helps students find the best student loan plans. Helping students to find the most appropriate student loan program ACS make this complicated process easy.

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Understanding How Student Loans Can Affect Your Credit Score

Due to the increasing cost of higher education nowadays millions of students in the USA take one or more student loans to cope their educational expenses. And there is a growing number of students today who find it difficult to pay off their student loans. Educational loan is probably one of the largest debts most of the students have ever had. How you deal with your student loan can have a huge consequence on your credit rating and, given that your credit rating establishes how much you can borrow in the future, on your financial future as well.

You cannot declare bankruptcy for federal loans; these loans still have to be repaid. Going into default with student loans will affect your car loans, mortgage application, etc. However, keep in mind that it isn’t your student loan that has an effect on your credit score, but the way you handle it. How you manage your student loans today will affect your credit score for years to come.

What Is the Credit Score?

Your credit score plays very important role in financial terms. Essentially, it gives a reflection of your financial responsibility to diverse creditors and lenders, to put it in other words, it helps them estimate the level of risk you present as a borrower to them. For instance, if you don’t pay your bills on time, it sends a message that you lack a financial responsibility.

How Your Credit Score is Calculated?

  • Payment History – Your capability to pay your bills on time without fail makes up 35 percent of your credit score.
  • Credit History – 15 percent of your credit score is depending on the length of time you have been using credit.
  • Amount Owed – The amount of debt you owe makes up 30 percent of your score.
  • New Credit – At 10 percent, frequency of new lines of credit opened is also considered.
  • Types of Credit – Also at 10 percent, the different types of credit cards you possess affect your credit score.

How to Effectively Handle Your Debts

Your credit rating stands for the debts you have and your repayment history. The key for a good credit rating is to make regular payments on time and repay the debts as soon as possible. Here are some useful guidelines to help you successfully cope with your student loans and debts.

Early Student Loans Repayment

Repay your loans as soon as possible. The repayment period for most of the student loans is about 10 years and the monthly amount you have to pay is based on this timeline. If you find that you can afford to make these payments, increase your monthly payments and repay your student loan in the shorter period of time. Not only that paying more than minimum payment will help you repay your loan faster, but also will positively affect your credit score.

Refinancing Student Loans

Refinancing your student loan can be of assistance in getting a low interest rate. In addition, with lower monthly payments, you will be able to pay off your loans on time which will positively affect your credit rating.

Making Regular Interest Payments

In case you have taken an unsubsidized federal or private student loan, you may be required to make interest payments while you are still in school. Include this amount into your monthly financial plan and make your payments in time. If you can, try to avoid deferring interest payments after graduation, when they are going to be added to the principal amount of your loan.

Making the Use of a Grace Period

Student loan borrowers usually have a benefit of 6 to 9 months-grace period after graduation, before they are required to start repaying their loans. This time is designated to let them find a job and to gain a regular income. In case you find a job before during the grace period, it is strongly recommended to put some money aside and make larger payments, which will help you to repay your loan faster.

Avoiding Failure to Make Payments

If you find that you have difficulty making the payments of your student loan, the best idea would be to contact your loan lender immediately and try to work it out together. If your lenders find you communicative and cooperative, they will be more willing to help you find the solution. If you are not able to pay the full amount, make effort to pay smaller payments instead. If you miss your payments, your loan will be considered delinquent. This will come as a negative mark on your credit report.

After you start repaying the loan again, your credit score should improve, but your skipped payments will still appear on your record.

Avoid Defaulting on Your Student Loans

If you fall to make your loan payments, your student loan will become delinquent Successive failure to make loan payments or extensive delinquency may lead into student loan default. Default comes about after 270 days of non-payment on a federal student loan or 120 days of failure to pay on a private loan. Under most federal student loans your loan will be put into default after nine months of skipped payments, and for most of private student loans your loan will be put into default after three months of missed payments, though this depend on the specific loan lender. Defaulting on your student loan can leave a mark on your credit record for up to seven years after your loan is fully repaid. This will have a negative mark in your credit score as a consequence.  To avoid defaulting on your student loan, get your loan refinanced.

For most of the students student loans are helpful assistance in their pursuit for higher education. Not your student loans, but the way you handle them can affect your credit rating both, positively or negatively. To avoid student loans harm your credit score the best is to make a repayment plan and start paying off your debts as soon as possible. Avoid going into default under any circumstances and take into account loan options such as flexible repayment plans, grace period, deference and forbearance to make sure that your student loans do not affect badly your credit score.Careful planning and financial responsibility, will help you not to feel overwhelmed by your student loans.

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Examining No Credit Check Private Student Loans – How to Get It

The reality of getting a no credit check private student loan

Student loans are a type of student financial aid provided from the federal government or private lenders with the intention to assist students in managing to pay for their college education. Because these loans are adapted to students, most of them have flexible repayment terms and low interest rates that make it possible for college student to pay off the borrowed amount.

When federal student loans aren’t enough or student for any reason cannot obtain this type of financial aid, private student loans can be very helpful in paying for education-related costs. If you are in this category of students, and the private student loans are the only obtainable option, you have to be aware of the fact that is almost impossible to get a private student loan when you have a bad credit. Nowadays credit is playing a large role and credit history takes important place when it’s time to plan your financial aid tactic. If you apply for private student loans, your credit score is going to be used by the loan lenders to determine your loan eligibility. Most of private student lenders offer a loans based on borrower income and credit history and unless these two conditions are met, it is very complicated to find a private loan lender that can provide borrower with the financing him without much of harassment. In case you have no credit or bad credit than you will need a creditworthy cosigner to get your private student loan approved. And since most of the students do not have an established credit history, a cosigner may be required when applying for private student loan. You can apply for private student loan with no cosigner in case you are working and have a good credit. You should be aware that many bad credit lenders who are offering you a no credit loan in fact are probably offering some type of personal loan or even a payday loan. These types of loans are not suitable for students and you should avoid them if possible.

No credit check student loans are loans designated to help students who don’t have a good credit history. There are many loan options that do not take borrowers credit history into consideration when assessing a potential borrower’s student loan application.

Federal Student Loans

The only true type of no credit check student loans are federal student loans which do not depend on borrower’s income and credit and don’t require you to submit a credit check and provide money on need basis. Students can apply for subsidized and unsubsidized federal loans to pay for their college education.  Federal student loans do not require a credit check or cosigner since the loans are guaranteed by the federal government. For the reason that there is no risk involved in lending to student on a federally guaranteed loan, there is no credit needed. In order to apply for federal loan, student first has to fill out the FAFSA application.

Private Student Loans

There are also no credit check private student loans available for students, and they require students-borrowers to have a creditworthy cosigner, which means that he or she need to have a strong credit history. Cosigner can be a family member, a relative or a friend and he/she agrees to pay any debts if the borrower is not able to do that. In addition, a cosigner must:

  • Have credit score over 700
  • Be someone who you know well and can trust
  • Be aware that his/her credit is going to be affected by the loan

If you have repaid some installments of a previous student loan independently, in some cases you would be given the ability of applying with no cosigner or co-borrower and you ensure that the loan repayment will be entirely your responsibility.

How to Improve Your Credit Score

In case you have a bad credit score, there are some things you can do to try to improve it and improve your chances for student loan to be approved. Firstly, you should review your credit report and make sure there aren’t any mistakes and inaccurate information occurred on it. To start fix your credit, you also should sign up for student credit card, make regular payments and put down your present debt.

Think three times before you take your student loan. Before applying, put an effort to learn about all available borrowing options and then choose the one that suits your needs the best. If you are going to take a private student loan, examine all accessible alternatives and try to make the best possible deal.

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What is the FAFSA and How to Complete It

The Most Important Facts on FAFSA Application Process

About the FAFSA

Thousands of college and university students in the USA today utilize some sort of federal student aid as assistance in paying for their post secondary education. In order to become eligible for US government financial support provided by the Department of Education, as a first step students must complete the Free Application for Federal Student Aid or FAFSA, the universal application for all categories of federal student aid. The best approach to filling out your federal student aid application is to take enough time in advance to prepare yourself for filling out the FAFSA which will make application process relatively easy. This in particular means that you should try to collect and prepare all the needed documentation and information before you go ahead and complete the application. Reason for doing this is obvious, that kind of preparation will save you a huge amount of time and prevent for making any mistakes in your application. The earliest date you can complete the FAFSA is January 1st, and the deadline for submitting it is June 30th  for the upcoming school year.

Before completing the FAFSA, the first thing to keep in mind is that you have to meet certain federal student aid eligibility requirements to be able to qualify for federal student aid.

In order to fill out your FAFSA application, you are going to need the something of the following information and documentation:

  • Social security number
  • Institutional codes for each school you plan apply to
  • Your bank statements
  • Driver’s license
  • Foreign registration card, or Permanent Resident card if you are not a US citizen
  • Tax returns and W-2 forms
  • If you are still dependent child you’re going to need your parents’ tax documents
  • In case you’re married – your spouse’s tax documents
  • Current untaxed income statements such as veteran’s benefits, welfare, etc.
  • Business and farm documentation
  • Investment records and statements
  • Mortgage documentation

After collecting all the necessary information and documentation, the actual process of completing your FAFSA should not be difficult. There are two ways of completing the FAFSA: you can complete it online or in the written version. The more convenient way is to fill it out online, since the paper version will take you longer to complete it and submit it via regular mail.

The Written FAFSA Option

In case you decide to fill in the printed form, you can get a copy by requesting one at fafsa.ed.gov or by calling 1-800-4-FED-AID. Also, you can print your copy from federalstudentaid.ed.gov. or request a copy at your college’s student financial aid department.

Completing the FAFSA Online

In order to complete the online FAFSA option, first thing to do is to go to the official FAFSA website, fafsa.ed.gov . Application process is pretty simple: just follow the instructions provided and easily complete your application online.

Prior to formal submission of your application, you need to have your PIN which serves as your identity verification and it is rather similar to personal number that you would use to access any of your personal accounts. To get your PIN, visit www.pin.ed.gov.

FAFSA Application Steps

The FAFSA comprises seven most important segments, and each section has its own purpose, questions, and required information that applicants are required to submit. Applicants can always go back and make edits once they have finished filling out the whole application.

1. Personal Information

This section includes personal data such as applicant’s name, date of birth, social security number and address. The furtherer questions in this part will include information on her or his citizenship or residency status, academic progress and whether or not she or he may have an illegal drug conviction on your record.

2. School Choice

In this section of FAFSA applicants will be asked to provide list of ten schools they are interested in. Additional information required will involve their enrollment status and selecting whether or not they are interested in federal student aid programs.

3. Dependency Status

In this part of FAFSA application, students are going to find a list of questions intended to determine their dependency status. The list of questions appears as the following:

  • Are you a veteran of the United States armed forces?
  • Are you currently serving on active duty in the United States armed forces for purposes other than training?
  • Are you married at the moment?
  • Were you born before January 1, 1987?
  • Will you be enrolled in a master’s, or doctorate program at the start of the school year?

If your answer to any of the previous questions is yes, you may be considered as an “independent” for the approaching school year.

4. Parent Information

In this section student will be required to provide basic information about her parents such as their names, social security numbers, marital status, and your family household, like the size of the household and the number of persons from her family who are going to be attending college or university during the next school year.

5. Financial Information

This segment requires information on applicant’s last year’s tax return, current income and property. In case applicant is still dependant, he’ll have to provide financial information about his parents and himself alike. If he is determined as an independent, he won’t have to give financial information about his parents.

6. Reviewing and Submitting the FAFSA

In this part of FAFSA applicants are given the chance to review and save their application. In addition, students will have to agree to a legal statement serving as a certified confirmation that all the information provided during completing the FAFSA are accurate and honest, and that they won’t use their federal student aid for anything else besides academic-related purposes. By entering his social security number and PIN applicant should be able to go right ahead and officially submit his application by choosing submit option.

7. Confirmation

After submitting the application, applicant will then be taken to a confirmation page where a random confirmation number, and information release number will be provided which means that the FAFSA application is successfully completed.

The Student Aid Report

Once you have completed your FAFSA you will be sent a Student Aid Report (SAR) which contains all the information you provided in your application as well as your eligibility for particular types of federal student aid and your EFC (Expected Family Contribution of financial need). After two or three weeks the SAR will be sent by mail to your home address provided in the application.

At the end, it’s very important to bear in mind that in order to obtain a federal student aid, a new FAFSA application should be filled out for the each college year.

Video Guide  to Learn How to Fill Out the FAFSA in 7 Easy Steps


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Understanding Federal Direct Student Loans Program

Direct student loans are federal educational loans with low interest rates. These loans are provided by the US Department of Education with the intention to help students and their parents to pay for postsecondary educational expenses and usually cover tuition costs as well as additional expenses like transport, books, food, accommodation, etc. Direct Student Loans should not be confused with uncertified student loans, which are regularly characterized as direct-to-consumer loans.

The main benefits of Direct Student Loans are following:

  • Low interest rates;
  • Student borrows money directly from the federal US government, without third-party lender such as bank or financial institution;
  • Borrower have the opportunity to choose from numerous repayment plans which can be switched at any time, if the borrower needs a change;
  • Borrower has online access to his or her Direct Student Loan account information via his servicer’s website.

As it was mentioned before, the lender of Direct Loans is the Department of Education. Before the passing of SAFRA (Student Aid and Fiscal Responsibility Act) in 2010, federal loans for students could be offered as a part of the Direct Loan Program or the FFEL (Federal Family Education Loan) program, but SAFRA basically eliminated FFEL Program, and now most federal student loans are offered through the Direct Loan Program.

The four main types of federal student loans are:

  • The Subsidized Stafford Loan
  • The Unsubsidized Stafford Loan
  • The Direct Consolidation Loan
  • PLUS Loans

The Subsidized Stafford Loan

The Subsidized Stafford Loan is offered as a financial aid for students in who are proved to be in financial need, and it can be obtained without charge of interest during the time student is enrolled in school and during grace period and approved deferment periods after graduation.

The Unsubsidized Stafford Loan

Unsubsidized Loan is not based on student’s financial need. This loan option offers a choice to borrow of paying the interest while still is enrolled in college or university as well as during grace period and deferment period or can choose to accept for the interest to be added to the principal amount of his student loan.

For the both of the Stafford Loans student can apply via the completion of FAFSA.

The Direct Consolidation Loan

The Direct Consolidation Loan is category of loan which allows borrower to replace multiple student loans with just one. The Federal Direct Consolidation Student Loan Program lets borrower to consolidate most federal loans.

The Direct PLUS Loan

The Direct PLUS Loan is federal student loan for parents of the depending students intended to assist parents to pay for their child’s school expenses. To be eligible for the Direct PLUS Loan parent and student must meet certain requirements: must be the U.S. citizens or eligible non-citizens, parent must be the biological or adoptive parent, and in good standing with earlier loans and the student-depending child must be enrolled at least half-time at school participating in the Direct Loan Program.

Student loans provided under the Direct Loan Program will also require that applicants sign a Master Promissory Note (MPN) that will serve as a guarantee of their ability to repay the loan.

To sum up, the Direct Student Loans are federal education loans offered by the US Department of Education. Therefore, loan comes directly from the federal government, without involvement of third-party lenders like banks or financial institutions.

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How to Appeal a Student Loan Denial from Sallie Mae – The Essential Information

Educational expenses have been rising considerably over last decade and for a large number of students nowadays the only possible way to acquire higher education is to take a student loan or some other type of financial aid. Lots of students realize one or more federal or private student loans in order to pay for their college or university education. These loans are based on credit history, income, tuition fees and student’s needs and millions of students in US today are granted such educational financial aid. However, it happens sometimes that applicants receive a denial notification on their loan application based on criteria such as bad credit history or employment status.

Sallie Mae is one of the US largest private student loan lenders operating since 1972.  It is one of the leading America’s education loan lenders due to its low interest rates, advanced repayment options and numerous loan alternatives. And very important fact for those unlucky ones who have been denied their student loan, Sallie Mae has an appeal process option. That means that applicants who have been denied, but who believe that their loan has been rejected because of credit reporting errors or in the event that certain mitigating conditions apply, may appeal their student loan denial.

Here is some useful information to help you go through the appeal process.

First to be considered are some facilitating circumstances of student’s denied loan application as follows:

  • Temporary job loss
  • Medical emergencies
  • Temporary credit aggravation due to divorce
  • Disputed credit record based on a billing error
  • Natural disasters like earthquakes, tornadoes, hurricanes, tsunamis, etc.

In case you require appeal on student loan denial with Sallie Mae, keep in mind that you are going to be required to submit adequate third-party documentation as a verification of the events that caused your bad credit history.

If your Sallie Mae education loan is denied and you believe that you have good reasons to overturn that decision, you should without delay request appeal on your student loan denial. With the intention of helping you in this process, here is the list of succeeding steps that you should take:

  1. First you should do is to contact Sallie Mae via phone at (800) 695 3317. All applicants are invited to appeal via this phone number, because there is no appeal form to fill out available.
  2. Talk with the representative and present him/her your reasons for appealing. If they find it a reasonable explanation, they will pass your information onto the credit sector for further review.
  3. It is probable that Sallie Mae will invite you to provide a third- party documentation to help support your claims. If this is the case, you will be invited to send supporting information to them via one of the following Fax, Mail or Email.

You should take into account that Sallie Mae student loan appeal requests are evaluated on case-by-case basis and that your appeal will not be automatically approved. Appealing process takes some time and it could take up to a week for your application to be reviewed and a decision on your appeal to a student loan denial to be made.

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