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No Credit Check Student Loans for Next School Year

Students looking for no credit check loans for the Spring 2016 college semester need to start with federal loans and grants. The first thing you should do when leaving this site is to fill out the FAFSA application so you have a chance at the Stafford and Perkins Loans and Pell Grants. That’s only part of the story, since the cost of a university education has ballooned in recent years. Most of the time, funding your college studies is going to require a number of different remedies–not just one magic bullet. The system of loans and grants often help, but won’t always solve, you money problems.

The picture is the same for most of us. I have a friend with a daughter who just ended her college career at the University of Texas in Spring 2015. My friend, his daughter, and his family have been fighting against the tide these past few years, trying to pay for college without mounting debt. It’s been a hard slog for them, but it’s over without a ton of financial damage.

It didn’t start out that way.

She entered UT in Fall 2011. Because she finished second in her high school class and was a star athlete, he expected some type of help paying for her college. The last time we talked about how he was funding his child’s education, he related how disappointed he was by the little bit of scholarship and grant money they received. In the current economic climate, I’m afraid the route of federal funding that you don’t have to pay back isn’t always a kind one.

Graduation and College Education

The FAFSA Program Has Helped Tens of Thousands of Students Get a Better Education.

That being said, Federal Student Aid in the form of loans is still viable for many people. I’ve found that nothing worthwhile in this world ever comes easy, so if you have to beat several trees to fund you advanced education and training, the patchwork process of funding your studies is going to be worth it.

I suggest new college students should start by trying to get the Federal student loans before considering asking a bank for student lending, because borrowers are going to get much lower interest from the Stafford and Perkins loans.

FAFSA Federal Student Aid

For most government student loans, grants, and scholarships, you’ll need to fill out the “Free Application for Student Aid“, usually known as the FAFSA application. Information is available on the link I offered, including information on deadlines, filing options, recent changes, and a school code search to help you get your school information correct. When you apply through the FAFSA process, you’ll be signed up for a number of government student aid programs, including the three I’m going to discuss below: Stafford Loans, Perkins Loans, and Pell Grants.

Federal Stafford Loans

University students can apply for a non-credit loan called the Stafford Loan. Starting on July 1, 2012, the Stafford Loans will no longer be subsidized, due to the Budget Control Act of 2011. Unsubsidized Stafford loans will still exist. The Federal Stafford Loans have a fixed interest rate that can go as low as 3.4%. When you get a Federal Stafford Loan, you can pay school tuition and other education expenses. The Stafford federal program offers fixed-rate long-term no cosignter student loans for both undergraduates and graduates, so they’re the best of the bunch for what they do.

Unfortunately, Stafford Loans usually don’t loan a large amount for undergraduate studies, so this low-interest borrowing usually doesn’t solve all your financial problems at once. When you take out one of these loans, you’ll be on responsible for interest which accrues. That is, it’s a government agency, so delinquency and default on these loans is more complicated than it would be with a private lender. Still, the Federal Stafford Loan is a good way to subsidize your college education without going in debt the rest of your adult life.

Federal Perkins Loans

The Federal Perkins Loan Program, once known as the National Defense Student Loan and also known as the National Direct Student Loan, offers formula grants and loans to needy students who apply for the FAFSA and meet the requirements. The Federal Perkins Loan Program is cobbled together between federal funding and local college funding, so some of the money you get from a Perkins loan come from the U.S. government, while the rest comes from the college you’re attending. The amount of the loan tends to be between $1,000 and $4,000. Once again, you might not be able to fund your whole college career with the Perkins loan, but it helps.

When you take out one of these loans, you’ll have a 9-month grace period from the time you graduate before you need to start paying. It’s best that you apply for the FAFSA early and get admitted to your university early to get the most out of the Federal Perkins Loan Program. The reason I say this is that postsecondary education institutions hand out their Perkins loans on a first-come, first-served basis, so you’ll want to be the first in line. Lending of this kind takes place at over 1,700 different college campuses around America, so you’ll be eligible for these loans at most any campus in the United States. If you have trouble paying back these debts, contact the school you attended and see if you have eligibility for forbearance or deferment clauses of the Perkins Loan program.

Federal Pell Grant

Even better than a Federal student loan is the Federal Pell Grant. Grants don’t have to be repaid, so you won’t be saddled with post-graduation debts. A few drawbacks apply, though. First, you likely need to be from a household of financial need, probably from a family making $20,000 per year or less. The Federal Pell Grant Program has also seen defunding due to cuts in federal spending, so it’s harder to get a Pell Grant now than it was a few years ago.

When you are awarded a Federal Pell Grant, the average amount awarded is a little over $4,000. The highest amount awarded as of Summer 2015 is $5,775. The amount varies. The most semesters you’ll receive this financial aid is 12 semesters. Once again, you’ll need to apply through FAFSA to acquire a Pell Grant from the government.

2015 Student Aid Options

If you can’t get any of the loans or grants above, you can apply for private grants and scholarships. Scholarships usually require you to show academic, artistic, or athletic excellence, so these aren’t for everybody.

Expert Advice on Dealing with Student Loans

If you want notable experts to discuss financing your college education, here are a few video which might help you learn more about the process. Paying for a university education is one of parents’ biggest concerns these days. Many scholars worry just as much, if they aren’t lucky enough to have old Mom and Dad pay for their education.

The Student Loan Problem

For high school students applying for college and for parents of aspiring university scholars, this 25-minute report by PBS is an eye-opening expose on the financial industry. It is a eye-opening and sobering examination of the issue. 70 million Americans owe $700 billion in student loans. It could be the next potential financial bubble to burst, claims the PBS reporter.

While President Obama has taken several steps to limit the financial damage, it is still an issue which needs solutions. The woman in the report is a representative of the problem. She describes the bill collectors who call her to harass her about the money she borrowed while getting her social worker degree. Like an abusive manipulator, these people call and make the young professional seem like they are criminals and cheats…when it’s the banks who made this problem happen. Blame the victim.

It’s a stark reminder that the lenders out there build financial traps for people getting into postsecondary studies. Not everyone realizes these traps exist, so each new generation falls into them, thinking no other option exists.

Some would argue that many opportunities exist, but they require sensible decisions to be made. While you can’t blame the victim when they are a virtual child with no life experience, you can blame parents who should have better sense for enabling their children to go down the path of financial ruin. Or at least that’s what Dave Ramsey of CNBC thinks.

Dave Ramsey on Stupid Student Loans

If you think the woman above is emblematic of the problem, Dave Ramsey discusses how the student loan program is broken. He discusses how 18 year old people have no sense. He describes how a person should pay for a “history degree in cash”. He discusses how parents have to have a backbone and tell their children not to mortgage their future for a history degree or a sociology degree.

Don’t go out of state. Don’t cross the state line while borrowing money. Don’t quadruple the cost of an education by crossing the state line to a public university. Dave Ramsey’s rant on the subject is a gem, if you feel like people should know better.

Of course, this is a tough love approach. Ramsey’s not wanting to simply criticize the people who make these mistakes borrowing money. He wants to warn parents that they sometimes have to play the villain, when in actuality they are being a financial hero.

If you think the PBS and CNBC broadcasts are simply a matter of pointing fingers and casting blame, I’ve provided a video of tips to help you pay off student loans in the smartest way possible. Lynnette Khalfani-Cox is one of my favorite YouTube experts these days. I’ve posted a few videos with her financial advice. The one below is one of my favorites.

How to Get Rid of Student Loan Debt

Khalfani-Cox discusses proactive ways you can pay off these terrible debts. For instance, she discusses how you can ask your new employer to help you pay off your student loans as part of their. This is only going to work if you have skills and training which makes you a tremendous asset to a new employer, so many others will need various other options.

Below are other ideas for repayment.

People can volunteer as part of a debt repayment program which people can use to pay down their debts. Also, the Federal Student Loan Repayment Program allows people to pay off college expenditures by working for a quasi-governmental agency. Go to OPM.gov to learn more about the FSLR Program.

The OPM program does not require people moving to Washington D.C. Graduates can work through the program in their own communities, while gaining valuable work experience and connections. In 2011, the OPM was rated as a Top 10 employer for the four major factors in a job: Job Satisfaction, Leadership and Knowledge Management, Results-Oriented Performance Management, and Talent Management.

When you know these opportunities exist, they can change your adult life. You absolutely DO NOT have to be in a debt spiral for the next 25 years. Instead, learn the paths to financial freedom through proactive negotiation with your employer, volunteer programs in your community, or federal government employment.

Take a Different Path to Personal Financial Liberty

The most important thing is this: do not look to the people who own your debt to help you get out of the situation. These people set a trap for you to begin with. They don’t want you to pay off these debts you owe them. They want to keep you on financial life support in order to keep draining you of your economic life force. You aren’t the parasite here; they are. Avoid the financial vampires when trying to consolidate your debt.

Don’t borrow more money to pay off the old loans. Former university scholars who cannot get federal loans, government grants, or private scholarships still have options besides abusive student loans from predatory lenders.

Look into the cosigner loans if you have bad credit or you’re a new borrower. If the person cosigning on your academic loan trusts you, this is a way you can build credit and provides significant savings on what you would have paid. Student loans can be a curse for a young adult who’s just starting a bright new career, so do your best to mitigate that curse before that career ever gets started.

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