Getting student loans without a cosigner can be a pretty tough challenge. There are ways, however. Lenders will understand that you are young and don’t have much of a credit history and they will be willing to work with you. While most lenders will prefer you to have a cosigner or some kind of credit history, there are those will still lend to you if you do not. In this article we will discuss how to get a student loan as well as some of your other options.
Federal loans are available to just about everyone. These loans work differently than private loans and are given out based on different criteria. Federal loans generally do not pay attention to things such as credit history and do not require a cosigner and are instead given out based on other factors such as financial need. This means that students with bad or no credit history can still receive a federal loan. The two main types of federal loans that you can receive are Stafford and Perkins loans. Both of these loan types are designed to help students with financial need pay for their education and require no cosigners or credit checks. Perkins loans are designed specifically to cover educational expenses such as tuition and book costs and have a notoriously low interest rate. Stafford loans can come with a slightly higher interest rate depending on whether the loan is subsidized . To apply for a federal loan, all you have to do fill out and submit a simple FAFSA application. Keep in mind, however, that these loans are meant to cover only the essentials. Sometimes there is not enough money to cover all your needed expenses.
Having A Good Credit History
If you have received federal loans but still need some extra money, you can try applying for a private loan. Private loans are given out by private lenders such as banks or credit unions and are based entirely on your credit score. The easiest way of getting student loans without a cosigner is to have a solid credit history. However, most college freshmen do not have a credit history which makes this option more difficult. Having a good credit score is representative or responsible behavior and shows that you pay your bills on time. This is why having a good credit score is important. Students typically do not develop a credit history until junior or senior year so this is an option mainly for those wishing to enter into graduate school.
When searching for financial aid, you need to be weary of private lenders who advertise with phrases such as “student loans bad credit no cosigner no problem.” These lenders have a history of preying on desperate students with no other options available. It is important for you to read and understand the contract carefully before signing. Search the fine print and you will most likely find hidden clauses which allow these lenders to hike up their interest rates without justification. These loans are generally bad for students and may end up putting you into severe debt which you are unable to pay off.
There Are Options
Applying for federal loans is the easiest way of getting student loans without a cosigner and are more favorable toward students. It is best to consider federal options first before approaching any private lenders. However, if you have exhausted all federal options and are in need of additional help, you may be able to find a private lender willing to work with you. Be aware, though, that since you have no credit history, you will be seen as risk and will have to agree to stricter terms such as high interest rates and shorter repayment periods. Be sure to read the fine print and understand the subtleties of the contract so you do not end up owing more than you can pay.