Non Credit Based Student Loans

Non credit based student loans are contracts that are extended to scholars without a review of their financial history for approval of the contract. Subsidized funding such as a subsidized Stafford, Perkins, health professional, and many other university loans are non credit based student loans. These types will not require a check of the borrower's credit history in order to receive approval. Some of these subsidized programs do require parental information within the application, but approval for the non credit based student loan is not based on the personal, credit report of the borrower. The pay-back risk is backed by the federal government. That's why lenders can offer better interest rates and terms for these programs.

Interest rates are generally low on non credit based student loans and many lenders offer a grace period from the date of graduation until the beginning of the repayment period. Some offer a grace period of a year after graduation before requiring payments. Lenders with these programs usually offer interest rates that are significantly lower than a personal or unsubsidized student loan. In order to apply for a non based student loan program, a person must contact The Office of Financial Aid Services for information regarding qualifications and options.

In order to qualify for a contract of this sort, coeds must meet rigid qualifications. They are extended to people who do not have the financial means to meet college tuition fees and living expenses. There are certain guidelines that can be applied to each applicant to determine if he or she is financially capable of meeting educational expenses without subsidized help. The requirements range from parental income to prior tax reports. A non credit based student loan offers a college person who has no prior educational savings or very little parental financial support.

After graduation, a coed can opt to begin the pay off period or the contract can be consolidated for quicker pay off. Non credit based student loans offer a realistic way for to pay back the indebtedness without accruing huge interest rates and long term payments. It is important for any student to explore the Federally based non credit based student loan options that require no credit checks and have easy pay off terms. God does not excuse Christians from making wise financial decisions. Proverbs 16:20 says, "He that handleth a matter wisely shall find good: and whoso trusteth in the Lord, happy is he." Each of us must examine each line of a contract. We are stewards of what God has given us, so we need to deal with our finances as managers of His wealth.

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