Student Loans no Cosigner Needed

College is expensive, and many students are ill-prepared for this cost. Prospective college students despair of ever getting their degree because they are afraid the cost is out of reach. A lot of students find that their parents are not in a position to help, either, due to lack of funds or poor credit. What are you to do when you find out the cost of school is all on you? Student loans with no cosigner do exist and they are easy to apply for.

A cosigner is someone who uses their credit history to back up your credit and purchase or loan. Many times, college students have little or no credit and cannot get a traditional loan on their own. The types of loans you will use for school are student loans – no cosigner is needed for these loans.

There are three common types of federal student aid available. Stafford loans, Pell grants, and Parent PLUS loans. Stafford loans are the most common, and these are low-interest loans that you do not need to pay back as long as you are in school. The more college credits you earn and the older you are, the more money you are eligible for each year. Pell grants are monies from the government that do not need to be paid back as long as you complete your courses. Only the lowest income students will receive these. Parent PLUS loans are what many people confuse as a loan with a cosigner. This is a loan the parents can take out on their own to help pay for their child’s school.

To apply for the student loans, no cosigner is needed. Simply fill out the Free Application for Federal Student Aid (FAFSA). If you come across a site asking you to pay money to fill out the FAFSA, then you have typed in the wrong address. You will need the previous year’s tax information, so if you are filling out the 2012-2013 FAFSA, then you will need the 2011 taxes. If the FAFSA determines you as a dependent student, then you will need your parent’s tax information as well. This is not because they are cosigner on the loan itself. This is because the government figures in their income into the equation that decides how much federal aid you receive. Even if your parents do not intend to give you any money, the government still uses their information if you are under a certain age.

For these student loans, no cosigner is required. The parent’s tax information is all that is used to find out how much grant money or additional aid you can receive. The parents are not responsible for paying back these loans, only the Parent PLUS loan.

Leave a Comment