How To Get A No Interest Student Loan?

Answer 1

College can be an expensive venture, but the rewards for earning a college degree can be limitless. The first hurdle you must cross is paying for college so you can earn your degree. Many students take out student loans to fund their college education and the amounts borrowed on these loans can climb up to the tens of thousands of dollars.

Many private lenders will compete to lend you money for college by offering low interest fixed rates on their student loans. Government loans, like the Stafford Loan, also have low interest rates, but these rates can vary depending on the year the money is lent. The question is often raised as to whether or not a no interest student loan exists. The answer is yes, and there are some ways to go about getting a no interest student loan.

No Interest Student Loans

A quick Google search of no interest student loans will provide a wealth of information about churches, charities and other organizations that will give you a no interest student loan. However, some of these organizations do have their own criteria. Some may require a co-signer with excellent credit to back up the student loan repayment. Some may require you to volunteer some of your time performing public services in return for the no interest loan. In any case, a no interest loan can save students hundreds or thousands of dollars in interest over the lifetime of the loan, and the requirements for these loans may be worth it.

Subsidized Stafford Loans

A Stafford Loan is divided up into two parts; subsidized loans and unsubsidized loans. Subsidized student loans don't accrue interest upon disbursement of the loan while the student is enrolled in a college or university and working towards a degree. In effect, this is a no interest student loan, but interest does begin to accrue on the balance of the loan when repayment begins. Some people prefer to take out subsidized Stafford Loans over a no interest loan because these government funded loans offer many options for repayment, deferment, forbearance or forgiveness that private lenders may not be willing to offer.