Getting student loans without a cosigner is usually difficult, however, it is possible. Some private student loan agencies and even the federal student loan offer no cosigner student loans.
Whenever an individual seeks credit or a loan but lacks the required credit score because of a low or no income, a cosigner is usually required. Due to the rise in the costs of higher education in the U.S, students usually involve their parents or family in cosigning for a student loan.
However, it is quite risky to cosign a student loan for a current or an incoming college student and some parents are not eligible to cosign a student loan on behalf of their child.
Facts about co-signing
Recent studies have shown that nearly 90 percent of all private school student loans are cosigned. The availability of a parent or guardian with the required credit score can help get your loan approved and it might as well lower the interest rate on that particular loan – which would save you some money over the lifetime of the loan.
What happens to those who can’t get a cosigner or do not want one for a student loan? Fortunately, there are several options out there to be considered.
List of contents
- Top 8 Private lenders offering student loans with no cosigner
- Federal student loans without a cosigner
- Drawbacks of student loans without cosigner
Private student loan without a cosigner
To the question can I get a student loan without a cosigner? The answer is "yes".The advantage of having a cosigner with a good credit score is that it can help you in securing a much lower interest rate. If you don’t have access to a cosigner, your interest rates can potentially be higher because lenders would imagine you in financially vulnerable situations not being able to repay them. However, getting a private loan with no cosigner is possible.
Here are few private lenders who offer non-traditional loans without cosigner for students
1. Funding U
Funding U is a private student loan company that specializes in lending to those students who don’t have a cosigner. They ignore the credit score or income when determining eligibility. Funding U focuses on things like class hours completed, major, internship experience, and past academic record. Funding U offers undergraduate loans without a cosigner. These loans come with a fixed rate of interest and no origination fees. To qualify for these private student loans you must produce documents of academic growth every year as instructed by Funding U. Details related to loans are mention below
Min Loan Amount - $3,000
Max Loan Amount - $10,000
Fixed APR - 7.49%-13.49%
Loan term - 10 Years
Contact Funding U at 1-844-727-2684
Learn more about Funding U Student Loan Review
Ascent independence is a loan that is given to independent students, either college (juniors or seniors) or graduates who do not have a cosigner. Applicants are expected to fulfill some requirements laid out such as good credits, the school must be accredited, loan amount should be considerate, and other factors to get approved for a student loan without a cosigner under Ascent. They provide many flexible repayment options in favor of their borrowers taking loans with them.
Min Loan Amount - $1,000
Max Loan Amount - $200,000
Fixed APR - 3.53%+
Variable APR - 2.71%+
Loan term - 20 Years
For more details contact at 0345 604 0860
Learn more about Ascent Student Loans Reviews
3. Citizens Bank
You may be eligible for a student loan from citizens bank even if you do not have a cosigner but you stand a better chance of getting approved if you have the required credit score as well as a minimum income of $12,000. They also offer a cosigner release option after 36 months.
Min Loan Amount - $5,000.00
Max Loan Amount - $15,000.00
Fixed APR 4.25%
Variable APR 1.24%
Loan term - 15 Years
For more details contact at 1 (800) 922-9999
Learn more about Citizens Bank Student Loan Reviews
4. Commerce Bank
A student may be eligible for a commerce bank loan even without a cosigner but having a cosigner increases your chances. For those borrowers who may not have a guarantor, a cosigner release may be allowed once the borrower can meet up to 12 on-time payments and meets credit requirements. Below are the few details you must know.
Min Loan Amount -$500
Max Loan Amount - $12,000
Fixed APR - 4.74% to 12.88%
Variable APR - 1.74% to 12.66%
Loan term - 15 Years
Contact details 800-666-3910
Learn more about Commerce Bank Review
LendKey does not charge any loan application fees, and borrowers can also apply for loans through its online web portal. Since LendKey’s loans are funded by community banks and credit unions, they tend to charge lower rates. But it ultimately depends on the individual bank or credit union that approves the loan. However, the applicant should expect to show no less than three years of credit history, and some required minimum income for them to be considered for a loan without a cosigner.
Min Loan Amount - $7,500
Max Loan Amount - $125,000
Fixed APR 3.49% - 8.93%
Variable APR 2.7% - 8.96%
Loan term - 20 years
Contact details 888-549-9050
Learn more about LendKey Student Loan Reviews
6. Six Up
Six up if one of the private institutions that offer student loans without the need of a cosigner to help bridge the gap between financial aid and cost of attendance. The borrowers do not require credit history, but it would be considered if they do have one. And in some cases, a cosigner may be required.
Min Loan Amount - $2,500
Max Loan Amount - $60,000
Fixed APR 3.49% - 6.46% – 9.03%
Variable APR 6.24% – 9.07%
Loan term - 10 years
Contact details 1-866-669-9750
Learn more about Six up Student Loan Reviews
7. MPower Financing
The Fixed APR for A.M. Money Private Student Loan 7.08 - 8.06%, variable rates keep changing according to market standards. While A.M. Money Private Student Loans do not disclose their accurate Minimum credit to qualify, without a cosigner you must have a strong credit score to get loans from A.M. Money Private Student loans.
Min Loan Amount - $2,001
Max Loan Amount - $50,000
Fixed APR 8.89% to 14.97%
Loan term - 10
Contact details 1-202-417-3800
Learn more about Mpower Student Loan Reviews
If you want to pursue a career in nursing Avenify can be your best option. With a fixed interest rate of 3.22% to 8.98%, and variable of 1.58% to 8.73%.
Avenify has good reviews overall for their service provided.
Min Loan Amount - $7,500
Max Loan Amount - $125,000
Credit score - 500s and above
Contact details +1 (240) 635-8229
Learn more about Best private student loans
Federal student loans without a cosigner
No cosigner student loans are essentially the ones Federal Government provides. Applying for financial aid is a necessity that helps the student in maximizing some benefits of the federal financial aid before considering the private student loans. Luckily, the U.S. Education Department does offer a list of financial aid options for students. Financial aid may include scholarships, grants, and federal student loans. Different options should be provided and the best must be considered for the federal student loan and implemented before going for the private school student loans.
There are many advantages when it comes to federal student loans. One of them is the chance for a subsidized interest during school, another is the possibility of loan forgiveness as well as an income-driven repayment plan.
Here’s a quick overview:
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct Consolidation Loans
The type of loans mentioned above is provided without a credit check or a cosigner.
An exception for federal PLUS loans
A PLUS Loan is a loan that is offered to the parent of any student who is enrolled at least half-time in an eligible program at post-secondary institutions or graduate and professional students at eligible post-secondary institutions. The PLUS Loan has a higher interest rate of 7.6% for student loans issued after July 1, 2018, compared to all other federal student loans.
The PLUS Loan rates do offer a better rate than private student loan rates. PLUS Loans are usually issued with the availability or need of a guarantor and creditworthiness is considered. Therefore a parent using the PLUS Loan must have a good credit history that is free from certain adverse events(default loans).
Learn more about federal student loans
How to get student loans without a cosigner?
When compared to the federal student financial aid, private student loans are usually offered through non-government banks and lenders. There are quite a several lenders and while each lender has its uniquely different underwriting and approval criteria, there tend to exist a lot of crossovers. There are some requirements to be met when it comes to getting approved for a private school loan.
In general, the following requirements must be met to get approved for private student loans with no cosigner:
1) Have a good credit history
Most private student loan companies and lenders seek those borrowers who have a good credit score ranging from 660 and above. For students with little or no credit history at all, this might be quite a challenge since having no credit history automatically disqualifies you to be considered for a private educational loan without a cosigner.
Students can start building credit before entering school. Some banks offer "student credit cards" with very low spending power. If you pay your bill on time each month, credits can be slowly built. There is also something called no credit check student loans.
2) How good credit score and income
No cosigner student loans should be the top priority. Though, building credit isn't the fastest solution and shouldn't be considered as an optimal solution if you are planning on starting school in the current year since you may need some time to accomplish this. Nonetheless, with a firm and solid credit history, you’ll be able to qualify for different loans on your own.
This process may take two or more years which is too small if you're hoping to get the world's highest credit score because a key factor that contributes to most scores is the amount of time you’ve been borrowing. But it should be a bit sufficient.
To get student loans without a cosigner, start to borrow responsibly. Even if you can’t borrow the amount needed right away for school, you could be eligible for a small loan or for obtaining a credit card. Having a part-time job could also help if you can deposit up to $500 at any of the credit union. Demanding for a cash-secured loan or a secured credit card are other options. Any among both will help you establish credit for some credits.
Most private banks these days are willing to lend to those borrowers who earn at least $25,000 annually. Summer jobs also count as income, but most students don't earn that much during summer or academic year jobs.
3) Be a U.S. Citizen and use collateral
Unfortunately, most private financing institutions are not willing to offer student financing without cosigner to non-citizens of the U.S.
A higher-than-average interest rate is levied on those borrowers who seek financing from private institutions without a guarantor. Sometimes, private student loan lenders offer a fixed or variable interest rate above 10% to those borrowers who apply without a cosigner. They do this to protect themselves from loss when the student borrow enters default. They sometimes justify their actions by stating that a student with no cosigner is much riskier to lend to.
It is, therefore, necessary to choose a lender who offers the lowest interest rates before applying for a private student loan without a cosigner
Sometimes properties can be used for obtaining loans. If you own an automobile, for example, this can be used as collateral for obtaining a personal loan.
This money can then be used for paying tuition fees and other college costs. You may not get enough to fund your entire education, but this may help you get quite a few classes under your belt as you set out to work on building your credit.
Worried about your college tuition? Find the best student loans for you.
Drawbacks of student loans without co-signer
It is quite possible to apply for a private loan without the availability of a cosigner as we've seen. However, there are few disadvantages involved in getting a loan without one.
Since college is getting more expensive as the year passes, the federal financing limits don’t seem to be keeping up with this change. Therefore, federal loan options are the best options to be considered when it comes to student loans, but the maximum amount offered cannot sustain everyone.
Private loans can also be quite tricky. As stated before, the difficulty in getting approved, and the interest rates demanded are often very high. However, the high-interest rate demanded when a cosigner isn't involved would be relatively high.
If you can graduate successfully and thereon get a good job with a good income, you may be eligible for a lower refinance rate. A refinanced student loan or a consolidation loan is offered by private lenders to replace your old loans.
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