Obtaining Student Loans Without The Need For A Cosigner

Published by Chris | Filed under Loans

With education costs continuing to rise from one year to the next it is becoming harder to find the money necessary for college and many students spend more time worrying about raising the money needed than they do working at their studies. If this was not bad enough all too many students discover that once they have left college they are left with so much debt that it simply drags them down and will probably take many years to pay off. Now, if this seems to be a grim picture then for all too many students the problem of funding a college education is magnified by the requirement to raise the money needed without having a cosigner to their loan applications.

Nowadays college funding is not merely a matter of looking to a single source of finance for most students but is a matter of creating a portfolio of funds from various different sources.

The first port of call for every student must be to look for scholarships and grants. Far too many students ignore this source of essentially free money altogether and yet you would be surprised at just how many scholarships and grants are on offer today. In most instances of course the sums of money available are relatively small but even so can be extremely useful as one part of your overall funding plan.

The next source of funding ought to be federal loans through schemes such as Perkins and Stafford loans which you can get as both subsidized and unsubsidized loans. Perkins loans particularly useful because of their low rate of interest but are also the most difficult loans to get and require students to demonstrate financial hardship.

Unhappily at this point in spite of the fact that you will have begun to create your portfolio it is unlikely that it will give you sufficient money and you will need to start casting your net wider and here you will have two routes to follow.

If you are fortunate enough to have the assistance and support of either a parent or guardian then they may apply for a federal student PLUS loan to make up the shortfall between the funding you have been able to source yourself and the total cost of attending college. Student PLUS loans are subject to your parent or guardian having a fairly good credit rating but the requirements are not as strict as those applied by private lenders.

If you do not have a parent or guardian you can turn to or simply decide to go it alone then you will need to obtain a loan from a private lender and exactly how simple that will be will depend to a large extent on your own credit history. In most cases lenders will be happy to grant you a loan if you have a good credit rating and will ask for a cosigner if you have no credit history against which they can make their lending decision or have a bad credit rating. Nonetheless, with a growing number of people with a bad credit rating today there is also a rising number of lenders who will grant loans without the requirement for a cosigner and so it is merely a question of shopping around.

A bad credit loan with no need for a cosigner will naturally cost you more than a standard good credit loan but if you take your time and shop around carefully you will obtain a loan at a reasonable rather than extortionate rate of interest.

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