Getting Student Loans without a Cosigner

Many students are looking to get student loans without a cosigner. This is possible through government programs. If you have a bad credit score, getting private student loans to finance your education from banks and other lenders is nearly impossible. To qualify, you’d have to rebuild you credit score, and this may take a while. You may therefore find yourself having to look for a willing creditworthy cosigner.

Loans with a Cosigner

Getting a cosigner in the first place may be quite a hassle. Obtaining a cosigner is only half the battle. Once your loan is approved, your repayment usually begins almost immediately, accompanied by higher interest rates. Taking this route gives you a chance to repair your bad credit, but you’ll still be faced with strict repayment terms.

Student Loans without a Cosigner – Federal Student Loans

As of now, the most straightforward way you can get student loans without a cosigner in the U.S. is by applying for federal student loans by completing a FAFSA (Free Application for Federal Student Aid). Since these loans are not credit-based, getting them does not require you to submit to credit checks.

The good thing about these loans is that they are offered directly by the Department of Education, which means several advantages to you. As long as you meet certain criteria, you are eligible for these loans.

Student LoansFirst, other than your credit history not being required, the repayment terms are much more flexible; you can postpone your payments if you find that you’re not ready. The interest rate charged is considerably lower than that for private student loans, and the repayment is usually for a longer period.

There’re three types of student loans offered by the federal government:

The Federal Perkins Loan

To qualify for this loan, you have to demonstrate a high level of financial need. To calculate your financial need, your expected family contribution (EFC) is subtracted from the cost of attendance. The lower your EFC, the higher the chances of qualifying for this loan. Of course, you must apply through the FAFSA and meet the eligibility requirements of the Federal Student Aid.

Loan amounts awarded by Perkins Loan Program are usually half of the full award amount, which stands at about $5,500 (undergraduate students) and $8,000 (postgraduate students) per year. The interest rate is fixed at 5%, and application is only through the FAFSA.

Stafford Loans

This is an easy way to get student loans without a cosigner. Unsubsidized Stafford loans are much easier to get for any student who needs some additional funding while in college, as they are not based on financial need. Awarding is done annually and application is through the FAFSA. There is also the subsidized version of Stafford loans, which is based on the financial need of the applicant.

Direct PLUS Loans

They differ a little from other student loans, as they are partly based on credit. For undergraduate students, the parents take this loan to aid in paying for you while still in college, while graduates or professional students can have this loan on their own. The interest rate is a little higher (7.9%) than other federal loans, but you can be financed for the full cost of attendance.


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