Student Loans Without Credit History

Q: I am a college student, 18 years old and I will be needing student loans to help pay for my college next year. I do not have any credit cards, or any other way I have been building credit history. Will it be possible for me to get student loans without credit history?

A: There are student loans that are not based on credit history, these are federal student loans, and the first type of student loans you should consider if you need student loans for college. Applying for federal student loans is easy, you simply visit www.fafsa.gov, and file a FAFSA (Free Application for Federal Student Aid). By filing a FAFSA you will also be eligible to receive federal grants for college (if you qualify), which is money for school that unlike student loans will not have to be repaid. Aside from federal student loans, you should also make certain to apply for any scholarships that qualify for. Scholarships are not based upon credit, you will not have to repay scholarship money awarded to you, and there are many easy scholarships out there to apply for.

Private student loans are based upon credit, so if you need more funds after the ones you have exhausted via the channels talked about above, you may need a creditworthy cosigner to qualify for private student loans. If you can find a creditworthy parent or guardian to cosign on a private student loan for you, you will have a better chance of securing the loan.