Student Loans Without a Cosigner
Student loans are designed for college student borrowers, and meant to help students cover the cost of their college education. However, most student loans also require a cosigner to guarantee that the borrowing student will repay the loan, or that the cosigner will step in to pay the loan in case the student fails to do so. While this is understandable from the lender point of view, it can sometimes cause problems for the student borrower if you cannot find a cosigner with a good credit history. Do not worry, though, because there are some student loans out there that are offered to students who do not have a cosigner. The foremost examples of student loans without cosigners are federal student loans. Federal student loans are not based on credit, but on the borrower’s desire to receive financial aid. In addition to these federal student loans, there are some private lenders in the market who do not require students to have a strong credit history and cosigners when applying for student loans.
Benefits of Student Loans without Cosigner
Applying for private student loans without a cosigner means that your chances of loan approval drop dramatically making it almost impossible to get a loan. It is therefore advisable to apply for federal loans instead of pursuing a private loan option without a cosigner. Federal loans, such as the Stafford and Perkins loans, are additionally beneficial, as they have relatively low interest rates and flexible repayment periods, designed to assist students in making their repayments in the easiest possible fashion.
Disadvantages of Student Loans without Cosigner
Everything has its pros and cons, and the same is true for student loans without a cosigner. The borrowing limit for federal loans is not that high, so they may not be sufficient for seeing you through college and covering all your expenses. Grants and scholarships also add to your financial aid package, but even so, you may still need to turn to private loans. However, there are not that many private lenders who are willing to loan you money with a bad or no credit history and no cosigner. Moreover, a private loan without a cosigner usually has higher interest rate, which is, in the long run, more financially draining for you.
Applying for Student Loans without a Cosigner
Applying for federal loans such as Stafford Loan or Perkins Loan is quite simple. Keep all your tax and financial documents handy, and fill out your Free Application for Federal Student Aid (FAFSA). If after receiving your federal financial aid package and you still need funds for college, then visit our website and check out our student loan comparison tool. Compare all the loans, select the one without a cosigner that is the most suitable for your needs, and apply for it.
Yes, there a few private lending institutions that offer student loans without requiring a cosigner. These loans are customized to suit the financial needs of a student, covering all kinds of educational expenses. The major disadvantages of loans without cosigners are the above-average interest rates and high origination fees.
Apart from private banks that offer student loans without a cosigner, what other options do I have?
If you do not want to apply for private student loans, you always have the option of seeking federal aid. Federal student aid comprises of student loans, grants, and work study programs. The eligibility criteria for federally-funded loans is simple and awards are need-based. All you have to do is fill out a FAFSA application and submit it online at fafsa.ed.gov.
Can you give me some detail on how to get a student loan without a cosigner or credit check?
You can apply for federal loans such as the Perkins loan, Stafford loan, Graduate PLUS loan, and the Parent PLUS loan. These loans require no cosigner or a credit check. The core purpose of these loans is to help students pay for education. No matter what the financial circumstances of those students are, they are eligible for federal loans based upon need only.
While I was reading about what banks offer student loans without a cosigner, I came across the option of a grant. What is a grant?
Grants are more like monetary gifts or scholarships. They do not have to be paid back and are utilized to cover educational expenses such as tuition fees, books, room and board expenses, etc. Grants are offered by the federal government and by a number of privately run agencies. Grants can be based upon state, subject, education level, and need.
Why is it recommended that I should apply for college student loans that don’t need a cosigner and have no credit check?
It is always recommended that one should exhaust his/her federal aid options before applying for private sources of funding, and no federal student aid requires a cosigner or a credit check. Cosigner requirements and credit score checks are usually performed by private loan companies. One major benefit of these loans is the low interest rate, simple eligibility criteria, and flexible repayment options.
As I was searching for private student loans without a cosigner and no credit check, I came across the term FAFSA application. What is this?
A FAFSA application is a form that is required when applying for federal student aid. This application is an integral part of the whole aid application process. The FAFSA is used to collect information about the financial status of a student and their family. The federal government then analyzes each applicant’s information to determine their financial need and their eligibility for aid.
Types of Student Loans
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