Ways to Get Student Loans without a Cosigner

There are many reasons for trying to get student loans without a cosigner. You might not have anyone with a credit score good enough to cosign the loan, or maybe you want to keep the responsibility of the loan on yourself. For what ever reason, options are available. Read on to find them out.

Getting student loans without a cosigner has never been easier. However, experts will always recommend that you seek aid from the government first. In fact, many experts will advise you to stay away from private lenders for various reasons that we will talk about later on. First is because federal student loans have very low fixed interest rates. Second is that federal student loans tend to have more flexible payment schemes.


How to Get Student Loans without a Cosigner from the 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. In addition, you are not required to pay Perkins loans and subsidized Stafford loans until you either drop out or finish school. Federal loans 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. It has a low fixed interest rate of only 4.5%. 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. On the other hand, interest on unsubsidized loans will immediately be charged upon the 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. How much you can borrow will depend on the information you have in your FAFSA. Upon the first payout, you are required to file a Master Promissory Note (MPN). This is a document that gives you a legal obligation to pay back the loan. The terms and conditions of the loan are also in the MPN.

Another Option: The Perkins Loan

The other way to get student loans without a cosigner from the government is through Perkins loans. They have a fixed interest rate of 5%. As with subsidized Stafford loans, interest will not accrue until you start paying for the loan and you are given ten years to repay the loan in full. If you want to apply for a Perkins loan, all you need to do is to complete a FAFSA on the internet. You will also need to file an MPN when you get your first payout.

Understanding Ways to Get Student Loans without a Cosigner from Private Creditors

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! Comparing private lenders against government loans, you’ll notice that you’re being asked to pay bigger interest rates. 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.