Student Loan Without Cosigner

Student Loan Without Cosigner

Student loan debt is a hot topic in the news these days, and it’s getting worse. According to the U.S. Department of Education, two-thirds of graduating seniors had an average debt burden of $30,100 in 2017—and that number is only going up. But what if you want to go to college but don’t have a co-signer? Here are five options:

5 Student Loan Options When You Don’t Have a Co-signer

Your options for student loans without a cosigner are fairly limited. In fact, there are only five ways to get the money you need without one:

  • Federal Direct Student Loan
  • Federal Parent PLUS
  • Private Student Loan (no co-signer required)
  • Federal Perkins Loan
  • Other options such as scholarship or grant funds

1. Federal Student Loans

One of the most common ways to pay for a college education is by taking out federal student loans. These are available to most students, regardless of their financial situation or credit history. Unlike private loans, which can be more difficult to qualify for and have stricter terms, federal student loans usually have lower interest rates and flexible repayment plans. They also offer a wide range of repayment options, including extended payment plans that allow you to reduce your monthly payment and pay off your loan over time.

Federal Student Loans vs Private Student Loans

There are two types of federal student loans: Direct Subsidized Loans and Direct Unsubsidized Loans. Both types offer low interest rates and flexible repayment options so you can find one that fits your needs best:

Perkins Loan

Perkins Loans are federal loans that are available to undergraduate and graduate students. Perkins Loans are available to students with a financial need. Unlike Stafford Loans, Perkins Loans do not have an annual or cumulative borrowing limit. However, the total amount of subsidized and unsubsidized Stafford loans you may receive in your lifetime is $31,000 (including any subsidized amounts).

Perkins Loans are subsidized loans, meaning the government pays the interest while you’re in school at least half time (six months out of each year). The interest rate for new borrowers will be 5% from July 1, 2019 through June 30, 2020; after that date it will be 6%.

Stafford Loan

Stafford loans are a type of federal student loan, so they’re only available to students who’ve chosen to attend school at least half-time. Stafford loans can be used for both undergraduate and graduate studies, but only for the cost of attendance: tuition and fees, books and supplies, room and board (if you live on campus), transportation costs that are required by your school (like an airplane ticket or bus fare), etc.

The amount you qualify for depends on your financial need—the difference between what you have available in assets versus what you’ll need to cover your expenses while attending school. You’ll also have to meet certain academic standards—you’ll need a high enough GPA (grade point average) at the time of application (or other proof of good standing after being accepted into college/university) in order to apply for these types of federal loans

2. PLUS Loans for Graduate Students and Parents

A PLUS Loan is a student loan offered to students who are currently enrolled at an accredited university, college or vocational school. The parent or graduate is the borrower and main user of the funds. These funds can be used for any purpose that helps the student complete their academic program.

If you’re a parent of a post-secondary student, you may also be able to get your own PLUS loans. To apply for these loans:

  • Download and complete the appropriate online application form from www.studentloans.gov/estimate-fees
  • Submit official transcripts from all schools attended (if applicable) along with documentation showing proof of U.S citizenship or permanent residency status if required by your lender (such as an original Social Security Card, birth certificate or naturalization papers)

3. Private Student Loans with No Cosigner Needed

Private student loans are available with no cosigner needed.

Private student loans have higher interest rates than federal student loans.

Private student loans are not eligible for federal repayment plans, such as Income-Based Repayment or Pay As You Earn. However, they may be eligible for other repayment options through your lender.

Currently there is no forgiveness program available for private student loan debt in which a borrower’s remaining balance would be discharged upon reaching a certain number of on-time payments or completing an educational requirement such as teaching or practicing medicine in an underserved area.

PenFed Credit Union

  • PenFed Credit Union offers student loans without a cosigner.
  • PenFed offers student loans for graduate students and undergraduate students.
  • PenFed offers student loans for parents and students, as well as graduate students and undergraduates.

SunTrust Bank

SunTrust Bank is a national bank that offers personal loans to students. You can apply for SunTrust Bank student loans with no cosigner, or with a co-borrower.

  • Apply Online: You can apply for SunTrust Bank student loans online by visiting the SunTrust website and clicking on the “Apply Now” button. The website will ask you if you are interested in applying for a personal loan or a business loan. Click on “Personal Loans” and follow the prompts to complete your application. If this is your first time applying online, it will take you through some initial steps such as entering your contact information and employment details before getting into more detailed portions of the application process like income verification documents (W2s, paystubs), asset verification documents (bank statements) etc.. Once all these steps are completed successfully, SunTrust will let you know if they can approve your request based on their current economic condition at that time period! Yay!

4. Secured Personal Loans from a Bank or Credit Union

  • A secured personal loan is one that’s backed by collateral, such as a car or home.
  • Secured personal loans are often easier to get than unsecured personal loans because they have lower interest rates and larger amounts available (up to $35,000).
  • You may be able to get a secured loan even if you have bad credit. However, the amount will likely be lower than someone with excellent credit.

5. Peer-to-Peer Lending

  • Peer-to-Peer Lending

Peer-to-peer lending is an alternative financing option, where people borrow money from other individuals or organizations as opposed to banks and credit unions. In some cases, friends or family members may offer financial support; in others, peer-to-peer lending is an option for those who don’t have access to such resources.

The good news is that you have options, even without a co-signer. Not all of these options are ideal, but there are ways to get financing for your education without help from a parent or guardian.

The good news is that you have options, even without a co-signer. Not all of these options are ideal, but there are ways to get financing for your education without help from a parent or guardian.

  • Consider getting your friends to help: If you’re part of a tight-knit group of friends and family who are willing to join forces by taking out loans together, this may be the best option for you. Ideally, you’ll find others with similar interests who will go into debt together and make payments after school ends. This can also cut down on interest rates because lenders will see that multiple people are involved in repaying the loan.
  • Seek out scholarships: Scholarships aren’t just limited to athletes and students with disabilities—there are many general scholarships available online through organizations like the National Merit Scholarship Program or other state-specific programs. You’ll need good grades and test scores (or some other limited criteria) in order for them to award funds though! Check out College Board’s website for more information on how these funds work: https://www2a91b9f92b7d8cee6a15203040efcad1b10aa8e2314a5c0451baeb9a3fb2498f81ee3265df36ec6ed55ae71565bc7094fbc7c03bf11be655cbbca39f45cd761db4725dc78de40c873499d35137423e71ae9406#section_12

The bottom line is that student loans can be a major financial burden, but they’re also an important investment in your future. If you are unable to obtain a loan with a cosigner, we recommend exploring other options like private student loans or peer-to-peer lending. You may also want to consider talking with your school about scholarships and grants which do not require any credit history or proof of income

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