No Credit Check Student Loan

No credit check student loans are available to borrowers for their education. A credit check is when a lender determines if is a potential borrower is creditworthy. They determine this by checking with the three main credit bureaus to see if anyone has reported bad debt or late payments to any of the credit bureaus. They also check for positive credit such as on-time payments, loans paid off, etc. After seeing what credit rating the three bureaus give a potential borrower for a loan they determine their risk in loaning someone money. There are no credit check student loans available where the borrower does not check someone’s credit rating.One example of no credit check student loans are subsidized loans. These no credit check loans differ from unsubsidized loans in two major ways. The first way is that they are based on income or financial need. The second difference is that the interest does NOT accrue while you are still in school, during your grace period, or any deferment periods you may need after you begin repayment. There are however maximum amounts that can be borrowed in a subsidized loan. For dependent students it is: freshmen year it is $3,500 per year, sophomore year it is $4,500, junior year $5,500, and senior year $5,500. For independent students in graduate school it is $8,500. For 2010/2011 school year the interest rate for a subsidized Stafford loan is 4.50%. For the 2011/2012 school year the interest rate will be an incredibly low 3.40%. In the 2012/2013 school year the interest rates will go back up to 6.80%. September 2011 is the best time to start school, if you want a low interest rate! 3.40% is less than half of what I am paying. Jump in if you’ve been sitting on the fence.Because these no credit check student loans have limits, if your financial aid office determines that you qualify they will apply for the subsidized loans first and then the unsubsidized loan next. Each college or university you apply for will have their own deadlines to submit applications for Stafford loans. Check with the schools to find out the deadline you need to have you application in by, or send in your application as soon as you can and they will let you know if you need to wait until the next submission period. The deadlines usually line up with when most people are applying for colleges. You apply for your no credit check student loans or Stafford loans after you fill out the FAFSA and receive a financial aid letter from your university.