There are a number of government loans that are offered with no credit checks. In order to be eligible for these loans, you must fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is designed to determine your estimated family contribution. If you are a dependent, you will have to submit financial information for your parents as well as yourself. If you are independent of your parents, the form will only apply to you.
Using the FAFSA, the government will determine how much financial need you have. Depending on your need, you may be offered subsidized Stafford loans. These loans are backed by the federal government. An advantage of subsidized loans is that while you are in school the federal government pays the interest on the loans. Subsidized Stafford loans are limited based on your year in school. For 2009, if you are a first year students you can receive up to $3,500 for the first year, $4,500 for the second year and $5,500 per year for the third year and beyond.
Even if you do not qualify for subsidized Stafford loans, you can still take out Stafford loans. With these loans you have the option of either making interest only payments while you are in school or allowing the interest to accrue. The limit on Stafford loans includes subsidized and unsubsidized loans. If your parents claim you as a dependent on their taxes, the first year you can have a total loan of $5,500, the second year limit is $6,500, and each year beyond that is $7,500. For independent students, the limits are $9,500 the first year, $10,500 the second year and $12,500 for each extra year.
Perkins loans are supported by the federal government but are awarded by the school you attend. The government designates a certain amount of these loans to each school financial aid department. The financial aid department then determines which students get these loans. Each year, you can receive up to $5,500 for an undergrad student and $8,000 for a graduate student. Like subsidized Stafford loans, the government pays the interest while you are in school at least half time and for the first nine months after graduation. The minimum credit load to be considered a half time student varies from college to college depending on how many credits the college considers to be a full time. For example, if a college requires 14 credit hours per term to be a full-time student, you would need to be enrolled in at least 7 credit hours to qualify for half time.
If you need additional loans, many private lenders will consider offering loans to students with bad credit if they have a co-signer. These loans are usually more expensive than government loans because they do not receive any government backing. Private student loans are offered by a number of companies including Citi, Sallie Mae and Educap.