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Where to Get Student Loans Without Cosigner

Student Loans for College with No CoSigner

Oct 16, 2009 Asa Ghaffar

Looking for a way to apply for a student loan without a cosigner? Need a quick guide to your options? Find out where to apply for student loans without cosigner.

The majority of those who intend to go to college will require some form of financial assistance. Student loans without cosigner are available from the federal government without the need for a credit check. It may also be possible to get a no cosigner student loan from a financial institution, provided that the borrower doesn't have bad credit or no credit history at all. The criteria are far more strict.

Student Loans Without Cosigner

It is not possible to clear college debt by filing chapter 7 bankruptcy, except when extreme financial hardship is being endured. Should the student be unable to keep-up with repayments, this could leave the cosigner owing thousands of dollars. Student loans with no cosigner are a means of funding tuition and living costs without financially obligating a friend, partner or family member.

Federal Student Loans

Perkins loans. The rate of interest is subsidized by the government making them the cheapest way to borrow money for college. This is a means-tested student loan without cosigner so will only be available for those experiencing financial hardship. They are administered by the financial aid office at participating universities so applications should be submitted directly through them.
Stafford loans. The majority of those who apply for student loans do so for a Stafford. Rates aren't as competitive as the Perkins loan (capped at 6.8% compared to 5%), but some are subsidized (capped at 5.8%) by the government. There are upper limits regarding how much can be borrowed which means that a number of individuals seek to borrower additional money from banks.

Bank Student Loans Without Cosigner

Individuals who have good credit and are able to demonstrate a proven ability to make monthly repayments may be eligible for student loans with no cosigner from a bank. The eligibility criteria varies considerably between financial institutions so it is important to check with them directly. Even those who have a poor credit history may be able to get a bad credit student loan, but it's more difficult than it once was.

Those searching for student loans without cosigner should look at the federal options first. They don't involve a credit check and are far more likely to be approved than a loan from a bank. Those in financial difficulty could also apply for a Pell grant. Whilst difficult to get approval, those who are successful won't have to pay it back. If not eligible for a Perkins loan, a Pell grant is unlikely.

Sources

"Federal Perkins Loan Program." U.S. Department of Education.

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