Best Private Student Loans without Cosigner

If you need financial assistance to pay for college, private student loans can help bridge the gap created by federal financial aid. Many students don’t earn or have long credit histories, so private lenders urge students to have a cosigner on their application. However, not every candidate has family members or friends willing to cosign a loan application, making it difficult to get a loan. If you find yourself in this situation, here’s everything you need to know about receiving the best private student loan without a cosigner. 

What is a Student Loan Without Cosigner?

A federal direct subsidised or unsubsidized student loan is the finest student loan without a cosigner. The government pays the interest on the subsidised version, which is available to undergraduates in financial need, while the unsubsidized form is open to all student borrowers, including graduate college students.

What to Consider When Choosing a Private Student Loan Without a Co-Signer?

There are several factors that you need to consider when choosing a private student loan without a co-signer.

• Check the type of private student loan you are taking, lenders offer different types of loans like undergraduate, graduate and parent loans
• Be aware of the loan term i.e. the number of years you have to pay off the debt. The duration can range from 5 to 20 years
• Check the eligibility criteria for your loan
• Check the interest rate at which you are taking the loan. The lowest interest rate is only available to most creditworthy students
• Check for the loan limit that you are offered along with the repayment plans for your loan

List of Best Private Student Loans Without Cosigner

As per data from the Consumer Financial Protection Bureau (CFPB), 90% of new private student loans required a consigner. But here you can review the best private student loans without a cosigner. 

• Sallie Mae: It is one of the best private student loans lenders. They offer loans specifically to graduate students. This is because private loans for college students without cosigners have a significantly greater chance of being approved. 
• Citizens Bank: It offers student loans without a cosigner to borrowers with good credit. No application or origination fees are charged. 
• Ascent: Ascent is one of the few best private student loans without cosigner organisations that particularly caters to juniors and seniors in college, as well as graduate students, with non-cosigned loans. For tuition and qualified living expenses, you can borrow up to $20,000 (INR 15,10,265) per year.
• Discover: It offers private student loans without a cosigner and in this case, candidates need to have good credit to get approved. 
• Earnest: Earnest’s borrower protections are more liberal than those offered by some of the other lenders on this list. Earnest will cover the entire tuition fee, up to a maximum of $250,000 (INR 1,88,78,312).
• Funding U: It offers private students loans without a cosigner. You can borrow up to $1,50,000 (INR 1.13 Cr) per school year, up to a lifetime maximum of $75,000 (INR 56K approx). 
• Common Bond: It offers private student loans without cosigner up to 6 figures. Medical, dental, and law school are all quite costly. A cosigner might be hesitant to take on a six-figure debt. As a result, Commonbond’s no cosigner private graduate program loan choice fills a market gap.

How to Apply for Student Loans Without Cosigner?

Following the below-mentioned steps to apply for students loans without a cosigner: 

Step 1: Optimise your Federal Student Loan Options

Federal student loans don’t require a cosigner and come with a number of advantages that private lenders don’t offer. Low interest rates and access to income-driven repayment plans and forgiveness schemes are among the benefits. Fill out the Free Application for Federal Student Help (FAFSA) to apply for federal financial aid (FAFSA).

Step 2: Consider all your Cosigner Options

If you don’t have a cosigner, your chances of getting accepted are approximately five times lower than if you do. With this in mind, you should think about all of your possibilities for getting a cosigner on your loan.

If you do identify a cosigner for your loan, look into the best private student loans to see if you can get lower interest rates. 

Step 3: Improve your Chances of Getting Approved

To make most of your federal student loan choices, you should be updated on bills, lowering your credit usage, and double-checking your credit report for inaccuracies. 

Step 4: Compare your Options

You can check which firm offers you the best rate, what repayment choices you have, and whether or not there are any costs by comparing your options.

Step 5: Put Together a Budget Plan

Once you’ve agreed on a lender and been approved for a loan, you’ll need to create a budget that includes your student loan payments so you can remain on top of them.

Who is Eligible for Student Loans That Don’t Require Cosigners?

You are eligible for loan without cosigner if:

• You are a US citizen or have  permanent resident alien status.
• An approved school or enrollment level
• At an adult age
• Good credit history
• Good credit score

Bad Credit vs No Credit 

No credit is when you have no credit history even if you have a stable income. This could be seen as a risk because you won’t have any track record. Having no credit history can cause the following results:

• Having to pay higher utility deposit
• trouble to find a place to live
• Fewer options in case of emergency expenses
• Have higher interest rates when you wish apply for loan

Bad credit scores are due to wrong decision made or some major credit card mistakes done. This can cause lenders to be reluctant to extend you credit. A bad credit score is below 630 on a scale of 300-850. Some of these credit card mistakes are as follows:

• Delayed payments
• Using 30% more of your credit limit
• A past bankruptcy
• Letting an account go to collections

Also Read: 5 Things to Keep in Mind to Apply for an Education Loan

FAQs

We hope you now understand the concept of student loans without a cosigner. Want to study abroad in 2022? Reach out to our Leverage Edu experts at 1800572000 and get started to fulfil your dreams of studying abroad.