Tips To Get Your Student Loan Without A Cosigner
Tips to Get Your Student Loan Without a Cosigner
Many students rely upon student loan for completing their education. Getting student loans can be tricky because nobody gives a loan unless you have an income or a good credit. Often, parents help their children get the loan by cosigning the documents but, in case, you want a student loan no cosigner you still have a lot of options to choose from.
One benefit of getting a loan without a cosigner is that you build your credit and it will help you get more loans, more easily in the future. There are two types of loans:
- Federal loans
- Private loans
- Federal loans – the US department of education has many loan options that require neither credits nor a cosigner. The federal loans have fixed interest rates and are relatively low.
- Direct Subsidized Loans-
Also known as the Stafford Subsidized Loans, the US department, in this case, pays the interest on the loan while you are enrolled in a school for almost halftime of your school. This type of loan is offered to both graduates and undergraduates.
- Direct Unsubsidized Loans-
Also known as the Stafford Unsubsidized Loans, in this case, the financial department decides how many loans you can be approved of according to the information they have of your family and background. The student pays the amount of interest at all times. This type of loan is offered to both graduates and undergraduates.
- Perkins Loan-
This loan is offered only to those students who show exceptional financial need. This loan is offered to undergraduates, graduates, and professional students. The eligibility of this program varies from school to school, and the funds available depend on the students individually. Before applying for this loan makes sure your college participates in this program.
- PLUS Loan-
This loan is different from other loans by the fact that the plus loan is primarily offered to parents. These loans require you to pass a credit check though they don’t require a cosigner.
- Private loans- the private loans have more borrowing power, variable interest rates, and credit checks. If you have a low credit score, then you may not be applicable for a loan. Private lenders can be banks, online lenders and other companies and or private organizations. A few top private student loan lenders are:
- Citizens Bank
- College Ave
- Lend Key
None of the above lenders charge an application fee.
Further more, if you are planning to get a student loan no cosigner then you need to follow some simple tips
- You have to start by filling out the Free Application for Federal Student Aid form. This form asks you about your tax information. This form also helps you to find out if you qualify for any scholarships or grants.
- Maintain a good credit score. For most loans, you will need a credit score of around 600, and if you have a credit score of around 720, then you qualify for better interest rates. To apply for a private loan without a cosigner, you need a pretty high credit score.
- Choose federal loans, which have flexible repayment options like income-driven repayment plans, fortitude and postponement and federal forgiveness programs.
- If you are over 21 and you have a limited credit history, then you have an option of a secure credit card.
- If you find that the federal student loans are not enough for you, then you can apply for private loans. Look around for a lender before you finally choose one as the interest rates vary highly in case of private lenders.
- Calculate the estimated amount of loan that by required by you and then only put up a request for it. If you state a higher amount than required, then it can land you in trouble.
- Prepare yourself beforehand and have a stable income. A decent amount of income will make you independent and make repayment of debts easier.
