Student Loan with No Cosigner
An increasing number of college students are looking for a student loan with no cosigner as the cost of education increases and more parents are falling on hard economic times. In the past many students frequently relied on the ability of their parents to cosign or guarantee their student loans as a way of obtaining further funding for college. This option is now frequently becoming unavailable due to an increase in unemployment as well as the number of parents experiencing problems with their credit rating.
How to Get a Student Loan without a Cosigner even with Bad Credit
For students bound for college or who are already enrolled in college, this can leave the dilemma of trying to find a student loan with no cosigner. As a result of the fact that students also frequently have poor credit or no credit, this can be quite a challenge. Even so, this does not mean that you absolutely cannot get a student loan without a cosigner.
Federal Loans make great No Cosigner Student Loans
One of the first steps students looking for a student loan without a cosigner should take is to look into federal student loans. Perkins and Stafford loans are typically the most common types of federal loans. There are numerous benefits to these loans, including the fact that you do not have to submit to a credit-check in order to apply for either a Stafford federal student loan or a Perkins student loan. You will need to complete the Free Application for Federal Student Aid or FAFSA. Not only can completing the FAFSA assist you in obtaining a student loan with no cosigner needed, but it can also help you in obtaining grant money.
The Subsidized Stafford loan specifically targets financially needy students, meaning that if you do not have a cosigner and you are low-income, you have a very good chance of being approved for this loan. The Perkins student loan is designated for college students who can demonstrate strong financial need. The Perkins loan offers an interest rate of just 5% and also offers payback terms that are longer than those offered through the Stafford loan. Both the Perkins and Stafford student loans are operated under the Federal Direct Student Loan Program.
Private Lending for a Student Loan with No Cosigner Involved
It is also possible that you may be able to receive a student loan with no cosigner needed through private student aid. Student loans can be obtained through private resources, such as credit unions or banks. Although it is possible to acquire a loan through private resources, these sources do often require a cosigner unless you have extremely good credit. It may still be possible to obtain a student loan without a cosigner involved through a private lending institution, but the interest rate may be higher than what would be typically paid with a cosigner.
Peer to Peer Lending offer Student Loans Without Cosigner Approval
Through peer to peer lending students are able to take advantage of more flexible lending guidelines. Typically, the fees charged for such loans are less than 2% of the loan’s total value. Over the last few years, peer to peer loans have accounted for $500 million. Along with more flexible lending guidelines and lower interest rates, students are also able to benefit from the ability to establish their credit history.
Some of the more well-known no cosigner peer to peer student loan companies today include:
· Virgin Money USA
· GreenNote
· Prosper
· Zopa
· Fynanz
· Lending Club
The repayment periods for peer to peer loans typically vary. For instance, Lending Club often provides repayment periods for up to three years. Green Note offers borrowers the opportunity to repay their loans over a period of ten years.
PLUS Loans and a Student Loan with No Cosigner
For students whose parents are not able to afford the cost of the tuition and cannot co-sign for student loans, no cosigner college loans are essential. Even though parental assets and income could improve, the reality is that many parents may still not be able to afford the rising cost of a four-year education. In some instances, parents may be able to apply for the PLUS Parent Loan, but even so good credit is still necessary to be approved. When family can no longer be relied upon for college funding, a student loan with no cosigner can be a good option for providing the funding necessary to obtain a college education.
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