Thursday, May 13, 2010

Get A Student Loan If I Don'T Have A Job

A college education may be possible with the help of student loans.


Student loans help make college affordable when paying for each semester outright is simply not financially feasible. However, student loans are very different than other types of loans, so even if you don't qualify for other types of loans, you may qualify for some types of student loans---job or no job.


Federal Loans








Student loans guaranteed by the federal government are not handed out on the basis of creditworthiness. Anyone who is enrolled in or plans to enroll in a college program and is a U.S. citizen or eligible non-citizen can receive these types of loans. They must meet a few other criteria though, including having a high school diploma or GED certificate and having the "ability to benefit" from the program of study. Federal Perkins Loans and Direct Subsidized and Unsubsidized Loans are the most common federal loan types. Neither requires proof of income, so students without a job can qualify.


Role of Credit


For the Perkins Loan and the Direct Subsidized Loan, all that you must prove is need. While eligibility isn't based solely on need, creditworthiness is not a consideration. On the other hand, the government-backed Direct Plus Loans, made for students' parents and graduate students, does require a positive credit history. This loan may be more difficult for someone without a job to acquire because if an individual doesn't have a job for income, it's likely he's fallen behind on bills and that may show up on a credit report.


Applying


There isn't a specific application for any of the three main federal loans not contingent on creditworthiness. You can apply by filling out the Free Application for Federal Student Aid, available online (see Resources). Once your application is processed, you will receive a Student Aid Report that tells you how much you aid you are eligible for, including federal loans.


Alternative


You can also take out private educational loans, which are similar to personal bank loans, without a job if you have a cosigner with adequate income and creditworthiness. However, such loans tend to have higher interest rates and come with additional fees and penalties. Lastly, getting a cosigner may prove difficult, since by cosigning on the loan for you, the cosigner agrees to take full responsibility if you default on its repayment.

Tags: types loans, Direct Subsidized, federal loans, other types, other types loans, Student loans