An increasing number of students are looking for student loans without a cosigner in a world in which it has become more important than ever to obtain post-secondary education funding. The simple reality is that education costs are on the rise and many parents are no longer able to meet their costs; either through out-of-pocket funding or through signing for loans to assist their children.
Student Loans without a Cosigner and FDSLP & FFELP
For students trying to find a student loan without a cosigner involved in the transaction, federal student loans are usually one of the best options. There are two massive student loan programs that provide subsidized student loans no cosigner options for students. The William D. Ford Federal Direct Loan Program and the Federal Family Education Loan Program are frequently referred to simply as the FDSLP and the FFELP. Along with the fact that students do not need to worry about acquiring a cosigner when obtaining a federal student loan, there are also many other benefits to these student loans without a cosigner needed, including:
· No interest payments while the student is enrolled at least half-time in school
· No interest payments for six months following the student’s graduation
· No interest payments for an extended period of time for qualifying students
· Loans are distributed on a financial need-basis
Compared to unsubsidized loans and private loans, these types of loans can be tremendously beneficial due to the fact that borrowers do not face any interest payments from the inception of the loan. Instead, the federal government will pay the interest accrual.
A variety of different types of student loans are offered through these government loan programs, each with their own maximum loan amounts. The FDSLP Direct Stafford Loans allows for loans up to $3,500 for dependent students. The FFELP Stafford Loan allows for $3,500 for dependent students. The FDSLP Perkins loan allows for $4,000 for students and the FDSLP Perkins Graduate loan allows for up to $6,000.
Student Loans without Cosigner and FAFSA
In order to apply for the federal student loans with no cosigner, as with all financial aid that is government-funded, you will need to complete the Federal Application for Federal Student Aid or FAFSA. There is no cost for completing this form. While there are often numerous factors that are taken into consideration when being considered for eligibility of any type of loan, federal student loans without a cosigner are much easier to qualify for. These no cosigner student loans were specifically designed so that any individual who wishes to obtain an education will have the financial ability to do so. This includes even students who may have poor credit and may not be able to qualify for more traditional loans, as well as college students who cannot depend on their parents financially.
State Sponsored Student Loans No Cosigner Programs
Students looking for student loans without a cosigner needed may also wish to consider state-sponsored students loans. Most states have also established their own education assistance programs that can help to supplement other types of financial aid programs. Many such state-sponsored loan programs do not require a cosigner provided the borrower has good credit on their own.
Such programs typically vary from state to state in terms of loan amounts available and loan requirements. The State of Alaska, for instance, offers the AlaskAdvantage Student Loan. In Connecticut there is the Connecticut Student Loan Foundation which works in conjunction with Susie Mae, its affiliated lender. Students living in or attending school in North Dakota, South Dakota, Montana, Wyoming or Wisconsin may wish to check into the Student Loans of North Dakota, which acts as a lending arm for the Bank of North Dakota. This state-owned bank offers access to federal student loans along with alternative loans. Through the Dakota Education Alternative Loan or DEAL students can choose from fixed or variable interest rates and there is no minimum amount to borrow for these loans. Students must have first filed for federal student loans; however, these loans can provide an affordable method for supplementing federal student aid.