It is easy for people to obtain student loans without cosigner and no credit, regardless of demographics, up to a certain point. Typically, the cost of tuition and books in undergraduate training at community colleges, state schools, and many private colleges and universities is low enough that the government backs the loan of students who are in financial need. The basis of the loan is need and credit history is not a factor in qualifying for the loan.
The subsidized loan amount limits are $3,500 for the student?s freshman year, $4,500 for the sophomore year, $5,500 for the junior, senior, and fifth year of the student, if applicable. In addition, the student may qualify for an additional $2,000 per year in unsubsidized government loans. Students who qualify for government student loans working on post-graduate degrees are eligible for $8,500 per year in subsidized loans and $12,500 per year in unsubsidized loans.
Students who do not qualify for government loans can only borrow money based upon credit worthiness in order to borrow money from private financial institutions. A student loan is essentially an unsecured loan and if the individual who is attempting to borrow the money has poor or no credit, he or she is going to need a cosigner before a financial institution is willing to lend money for educational purposes.
One common group of people who do not qualify for government poor credit student loans and may apply for and receive student loans without a cosigner is the non-traditional type of student. These students may have already worked at a career and has already established their credit. These people typically do not qualify for government assistance because they have too much value in their assets, such as their own home, savings, and other items of value. However, because of their credit history they should not have any difficulty with obtaining a loan without a cosigner, allowing them to keep their assets, rather than selling them in order to finance their education.
Posted by admin on August 26th, 2011 :: Filed under Loans/Mortgages
Tags :: poor credit student loans, student loans without cosigner and no credit
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Source: http://www.bb7lovesyou.info/business-finance/loans-mortgages/qualifying-for-student-loan-funding
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