No Cosigner Student Loan Selections
Given the current difficult economy and the rising cost of educational expenses, many students are now searching for no cosigner student loans. While in the past, many parents were often willing and able to help their college age children by guaranteeing or cosigning for a student loan, today that is often no longer a possibility for many parents as a result of rising unemployment rates and dwindling credit ratings.
Peer to peer no cosigner student loans
Another lending option students may wish to consider is a peer to peer student loan. These loans offer lending guidelines that are quite flexible. For instance, the fees for these loans are often less than 2% of the entire value of the loan. Peer to peer loans have grown increasingly popular in the last few years. This is a great way for college students to begin establishing their credit history. Some of the more well-known peer to peer no cosigner student loan companies include:
- Prosper
- Virgin Money USA
- GreenNote
- Fynanz
- Lending Club
- Zopa
The repayment period for a peer to peer loan often varies. While Lending Club offers repayment periods that can go up to three years, GreenNote will provide the chance to pay back your loan over a period of ten years.
No Cosigner Student Loans and PLUS Loans
When your parents are not able to pay for the cost of your tuition and also cannot cosign a student loan for you, it is essential to find a no cosigner student loan. In this case, a PLUS Parent Loan could be an option, but parents should be aware that good credit is required. When parents absolutely cannot provide assistance, a no cosigner student loan could be the ideal solution for funding a college education.
Subsidized Stafford and Perkins student loans require no cosigners
Students who are particularly financially needy can also benefit from the Subsidized Stafford Loan. There is actually a very good chance that you may qualify for a Subsidized Stafford loan if you are considered to be low-income and you do not have anyone who can cosign for you. College students who have a very strong financial need may also be able to benefit from the Perkins student loan. The interest rate on this loan is a low 5%, while the terms of paying back the loan are typically longer than the payback terms for the Stafford loan. The Federal Direct Student Loan Program operates both of these loans.
No cosigner private student loan options
Private student aid is also available for students who cannot obtain a cosigner for their student loan. Such private resources can include banks as well as credit unions, but it should be noted that such private resources usually will require a cosigner unless the student has exceptional credit. Even so, you still may be able to obtain a no cosigner student loan, but be prepared to pay a higher interest rate.
Obtaining student loans with no cosigner and bad credit student loans
For prospective college students or for those students who are already attending college, the problem of locating no cosigner loans can be quite a challenge. Many college students often find it difficult to obtain a loan because they either have no credit or their credit is poor. This can make obtaining a student loan even more of a challenge. Despite this, it is possible to find bad credit student loans and student loans without a cosigner.
Federal student loans with no cosigner
For students who are looking for a student loan without the need for a cosigner, the first step should be to consider federal student loans. Stafford and Perkins loans are often the most common types of federal loans available to students. These loans offer numerous advantages.
For instance, there is no need to undergo a credit check in order to apply for either of these loans. Students will need to complete the FAFSA or the Free Application for Federal Student Aid. Completing this form can assist students in obtaining a student loan without a cosigner as well as in obtaining grant money.
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