The Way to Get Student Loans without a Cosigner

Finance Guides announces a new series of informative articles to explain consumers' options when seeking student loans without a cosigner.

If you’re a self-supporting student, chances are you’re taking a part time job and the money you make is barely enough to get you through college. Maybe mom and dad send you money to pay for college but you find yourself needing more to pay for other expenses. What you need is to take out a student loans without a cosigner.

Getting student loans without a cosigner has never been easier. However, experts will always recommend that you seek aid from the government first. Why? Because they give loans to help out students, not go make a profit. You only get charged minimal interest rates and you are given plenty of time to pay the loan back in full.


Tips on how to Get Student Loans without a Cosigner from the Federal Government

The federal government offers two kinds of loans that are given directly to students: the Stafford and Perkins loans. The interest rates are favorable to student borrowers. Not only are they smaller, but they’re also fixed. Fixed interest rates, as the name suggests, have interest rates that do not vary over time. This will give you the opportunity to effectively plan your payment schedule. They also have more manageable payment terms. You only start payment on Perkins loans and subsidized Stafford loans after you graduate or leave school. Both loans have at least a 10-year repayment period. They are the safest way to get student loans without a cosigner.

Ever Heard of Stafford Loans?

Let’s first talk about the most common federal student loan - the Stafford loan. This is the most popular option when trying to get student loans without a cosigner. The measly 4.5% interest rate is its greatest appeal. There are two kinds of Stafford loans - subsidized and unsubsidized. Subsidized Stafford loans are only offered to students with financial need. If you do, interest on your loan will not accrue until you graduate or leave school. This is unlike unsubsidized loans which immediately accrue interest upon the first loan payout.

Interested in getting a Stafford loan? The first thing you should do is complete a Free Application for Federal Student Aid (FAFSA). The form is available for completion online. Your borrowing limit will be determined by your school with the use of the information on your FAFSA. Upon the first payout, you are required to file a Master Promissory Note (MPN). The MPN is a legally binding document that contains the terms and conditions of the loan. It also states your intention to pay back the loan.

What about Perkins loans?

Another relatively easy way to get student loans without a cosigner is through Perkins loans. They have a fixed interest rate of 5%. Interest will only start when you begin paying up, either upon graduation or leaving the school. You will be given ten years to completely cover all payments. If you want to apply for a Perkins loan, all you need to do is to complete a FAFSA . An MPN will also be required upon the first payout.

Learning Ways to Get Student Loans without a Cosigner from Private Loan companies

If, for some reason, you are unable to get federal student loans, or you need more money than the Stafford or Perkins loans allow, you can get loans from private lenders. Take note though that this should be your very last option. Private lenders are the riskiest route to getting student loans without a cosigner. Remember that the purpose of these companies is to make money - out of you! Private lenders will generally offer higher interest rates compared to the government loans. You will also usually only be offered loans with variable interest rates. Your interest rate may go up or down, disabling you from planning out an effective payment scheme. Given all that, possibly the most disadvantageous feature of private loans are the penalties. You will have to work out an effective payment plan that you can stick to just so you can avoid paying the very high late payment fees.