Guaranteed Student Loans Without a Cosigner
Most college students need financial aid to pay for their education. Financial aid can come from a variety of sources, including scholarships and grants, full or part time work, parental help, gifts and loans. Most private loan companies require a cosigner, unless you have an established credit history with fair to excellent credit. But it is possible to receive student loans without a cosigner.
Best Options for Student Loans Without a Cosigner:
1. Funding University - Funding University offers ultra competitive interest rates, easy-to-understand terms, budgeting tools and job-networking resources – AND, they don't require a co-signer. To see if you qualify based on academic merit, click here!
Federal Versus Private Student Loans
Federal student loans are provided and guaranteed by the United States Department of Education and awarded on an as needed basis. You do not need a cosigner or an established credit history to apply for a federal student loan.
The government does not guarantee private student loans. Banks and other financial institutions provide private loans to students who qualify. A cosigner with an established credit history is usually required. Undergraduate students almost always need a cosigner. Graduate and Professional students with a steady income and a good to excellent credit scores may be able to receive a private loan without an additional cosigner.
Best Options for Guaranteed Student Loans Without a Cosigner:
When applying for student loans without a cosigner, it may be helpful to start with guaranteed student loan programs.
Types of Federal Loans
- Direct Subsidized Loans
Direct Subsidized Loans are available through the U.S. Department of Education for undergraduate students who demonstrate financial need. The current interest rate is 3.4 percent (July 2012 – June 2013). Your college determines the loan amount, which cannot exceed your financial need. No cosigner or credit check is required.
- Direct Unsubsidized Loans
Direct Unsubsidized Loans are available through the U.S. Department of Education for undergraduate and graduate students. The interest rate is slightly higher than a subsidized loan, but you do not have to demonstrate financial need to apply for an unsubsidized loan. The current interest rate is 6.8 percent (July 2012 – June 2013). Your college determines the loan amount based on the cost of attendance and other financial aid you may receive. No cosigner or credit check is required.
- Direct Plus Loans
Direct Plus Loans are available through the U.S Department of Education for graduate and professional students. The interest rate is fixed at 7.9 percent, and a credit check is required. Your college determines the loan amount based on the coast of attendance and other financial aid you may receive. If you do not have an established credit history, you will need a cosigner.
- Federal Perkins Loans
Federal Perkins Loans are available to undergraduate, graduate and professional students who demonstrate extreme financial need. The interest rate is 5 percent and no cosigner or credit check is required. Perkins loans are provided through your school and they determine the amount you can receive.
Graduate and professional students may be eligible to receive up to $8,000 a year, with a maximum of $80,000 (including undergraduate loans).