How to get a student Loan without a cosigner

By Patmos Zen •  Updated: 05/19/15 •  9 min read

Funding is the most delicate part of obtaining a college degree, you must plan carefully and get it right. If you do not have appetite for risk or debt look for alternative funding methods. That said “Why are you specifically looking for a student loan without a cosigner”?

Imagine if you can fund your tuition without the hassle and unbearable paperwork required to get a loan or the alternative of  a loan without a cosigner. A bit about this “you either need a clean credit score or show genuine financial need” to get consideration for a loan without a cosigner.

Funding without loans is possible if you have a good grade, you can get scholarships and grants. The core purpose of this effort is getting the right education that can propel you to greater heights in life, even if you are from a very poor background.

I have help you research all the possible options and broken it down into comprehensible format, you can skip to the part that appeals to you the most. Also included are reference links to resources and service providers that are considered to be good. I advice you take a step further to look through the details, it is your life we are talking about here. You make the choice, better said the right choice.

In a moment we would continue, but before them check out the highlights of our discuss.

  1. Bad credit student loan without a cosigner.
  2. Guaranteed student loan without a cosigner.
  3. Private student loan without a cosigner.
  4. International student loan without a cosigner.
  5. Consolidate student loan without a cosigner.

What is a student loan without a cosigner?

A student loan aid students with expenses related to their education, it covers tuition, boarding, books, and other fees assigned by the college. A cosigner stands as a guarantor for the student loan, in case of default the cosigner is responsible for repayment. Therefore a student loan without a cosigner is a loan granted without the need for a guarantor.

The situation for each student differs, you may call it special circumstances. Some of these include students with bad credit, international students, guaranteed loans, need to acquire a private offer or merge your loans. More about these variants latter.

Credit Score or Financial Need

Your choice has a lot to do with the type of student loan without a cosigner you will need. I believe your know or have heard about credit score, most college bound students do not have a credit history. Hence the need to discuss about it.

Credit score

A credit score is an indices used to measure your credit worthiness, the credit score are on metrics determined by the credit bureau, banks and financial institution. Common metrics include repayment pattern, age, current debt value, and negative score.

Most fresh college students have a clean credit history, this is often a disadvantage to first time lenders. Credit scale is usually between 0-1000 and most people fall between 300-800, a higher credit score means you are more credit worthy.

Quick guide to raising your credit score:

Financial Need

This is when a loan is granted, if it is determined that the student has a very serious financial issues. Factors considered include annual income in the family, often applicants are asked to fill a form or write why they should be considered. This is required for most Federal Student loan, you will read more about that soon.

Types of student loans without a cosigner.

Two loans stand out, the Federal Loans and Private loans.

Federal loans for students without a cosigner

Federal student loans are funded by the federal government to help pay for your education. A federal student loan is borrowed money you must repay with interest.

This is the best loan for students who do not want a cosigner, the chances of getting it is high and the risk is low. A credit score is not needed for a federal rather evidence of strong or exceptional financial need is highly required. You must be able to proof beyond doubt why you should qualify.

The two most popular Federal loans are the Stafford and Perkins loans, they are both financial need based with low-interest rate and a flexible repayment period. Others include Graduate PLUS loan, and the Parent PLUS loan.

It is my advice you look out for available scholarships and grants, you do not need to pay back any of these two.

Stafford Loans

These loans are awarded on proven financial need basis, they are either interest subsidized or unsubsidized. Subsidized Interest does not need repayment of the interest by the student for at least six months after graduation, other peaks include payment of interest while in college by the US Department for education and its only available for undergraduates.

Unsubsidized Interest is available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive an unsubsidized Loan.

Perkins Student Loans

Perkins is a federal student loan, made by the recipient’s school, for undergraduate and graduate students who demonstrate financial need. This is usually awarded to students with family annual income of less than $25,000.00, this should not deter you if you have a higher family income. The repayment of this loan starts after a grace period of nine months after graduation.

Applying for Federal Student Loans

fill the Free Application for Federal Student Aid (FAFSA)

The office of Federal Student Aid provides grants, loans, and work-study funds for college or career school.

 We offer more than $150 billion each year to help millions of students pay for higher education.


Private student loans without a cosigner

Private student loans: These loans are private or nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.

Private loans are getting harder to get of recent, this is due to the economy, unemployment and stricter measures. The is loan is often resorted to after disappointment by the Federal student loan program, here are the list of some private lenders.

  1. Wells Fargo
  2. Discover
  3. Personal Loan for Student
  4. Credit Union
  5. Sallie Mae
  6. Citi
  7. Prosper Student Loan

Federal Student Loans

Private Student Loans

You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time. Many private student loans require payments while you are still in school. 
The interest rate is fixed and is often lower than private loans—and much lower than some credit card interest rates. Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.
Undergraduate students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis. Private student loans are not subsidized. No one pays the interest on your loan but you. 
You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record. Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors.
You won’t need a cosigner to get a federal student loan in most cases. You may need a cosigner. 
Interest may be tax deductible. Interest may not be tax deductible.
Loans can be consolidated into a Direct Consolidation Loan. Private student loans cannot be consolidated into a Direct Consolidation Loan. 
If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments. Private student loans may not offer forbearance or deferment options.
There are several repayment plans, including an option to tie your monthly payment to your income. You should check with your lender to find out about your repayment options.
There is no prepayment penalty fee. You need to make sure there are no prepayment penalty fees.
You may be eligible to have some portion of your loans forgiven if you work in public service. It is unlikely that your lender will offer a loan forgiveness program.

Table Source: FAFSA

Best form of funding education in order of priority

  1. Funding by parents – School savings plan etc
  2. Scholarships and Educational Grants
  3. Federal Student Loan
  4. Borrowing by Parents
  5. Students savings and income
  6. Friends and relative

If the following applies to you the details above will help you,

Bad Credit Loans Without a Cosigner
Guaranteed Student Loan Without a Cosigner
Private Student Loans Without a Cosigner
Consolidate Student Loans Without a Cosigner

Some scary finding about loan default include the following:

I believe you have one or two things to takeaway from this post, always remember to prioritize your options and go for the best. Research well. I will like to know the type of loan that works best for you.

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