About Private Student Loans
Private student loans are one of the most significant sources of funding for students who need financial assistance to attend college. Distributed by private lenders, private student loans are tailored to students in that they have flexible repayment plans, relatively low interest rates (in some cases, lower than federal student loans), and high borrowing limits.
Types of Private Student Loans
Private Student Loans fall under two categories, these being school channel loans and direct-to-consumer loans. School channel loans are verified and directly disbursed to the school that the applicant is attending, where they are then applied against the student's tuition bill. The interest rate on school channel loans is generally lower than direct-to-consumer loans. Direct-to-consumer loans have a relatively higher interest rate than school channel loans, and are disbursed directly to students, who can use the loan funds for educational expenses as they see fit.
Terms of Private Student Loans with no Cosigner:
The terms of Private Student Loans with no cosigner vary from lender to lender, and are not dictated by the terms of the U.S. Department of Education. Loan specifics differ on a lender-to-lender basis, from interest rates and repayment plans to policies related to deferment and forbearance, so be sure to do your research on any loan that you're considering. To apply for a private student loan, you can use our student loan comparison tool above. It allows you to search, compare, and apply for private student loans with no cosigner from top national lenders: just be sure you examine all of the details we present before you apply.
Private Student Loans and Cosigners
Federal student loans do not require a cosigner, whereas, private student loans require a cosigner or a co-borrower. The inclusion of a cosigner and co-borrower facilitates international students in acquiring private student loans. If the applicant does not have a good credit history and has applied for a private student loan, then the guarantee of a cosigner makes it easy for the applicant to procure the loan. Private Student Loans with no cosigner are virtually non-existent in the market unless the borrower has an exceptionally strong credit history, as a strong, responsible cosigner is required to let the applicant gain access to Private Student Loans.
Q:I have heard that a private student loan that doesn't require a cosigner will have certain disadvantages. Is this true?
A:A cosigner basically acts as a guarantor, increasing a student's creditworthiness. If you don't have one, the lender will be hesitant in approving your loan application. And even if the loan is approved, the interest rate will be higher.
Q:How can I get private loans without a cosigner?
A:Getting a private loan without a cosigner is possible as long as you have a good credit history that reflects timely payments on prior loans and no defaults.
Q:Can I get a private student loans if I don't have a cosigner?
A:If you want private student loan but don't have a cosigner, you'll need your own good credit history. Private lenders use credit history to determine the financial risk associated with a given loan--that is, the chance you won't be able to pay that loan back. If you don't have a cosigner or a good credit history, you may have better luck with federal student loans.
Q:Why is it harder to find personal student loans without a cosigner?
A:It is difficult to find a student loan without a cosigner, as lenders view it as an increased financial risk. Even if students do get a loan without a cosigner, the interest rate on such loans will be higher when compared to loans with cosigners.
Q:Can I get a guaranteed student loan without a cosigner?
A:Yes, all federal student loans are guaranteed to not require a cosigner. However, most private student loans demand either a cosigner or co-borrower. Cosigners are required by private lenders if students do not have a good credit history to show for themselves.