How to Get Student Loans without a Cosigner?

How to Get Student Loans without a Cosigner?

Revised on January 1st, 2011 at 7:51 pm | Financial Aid Counselor | Article of: Getting Student Loans | Resource for: |

Student loans are probably the best money that you will ever borrow in your life since it not only helps you get education for a successful career but it also has low interest rates. However, not everybody can get a loan; some doesn’t qualify for a loan for one reason or another while others don’t know how to apply. The biggest obstacle that many college students face in the process of applying for loans is getting a cosigner. Many private student loans won’t approve your application without a co-signer; but yes, you can get student loans without cosigners. Where do you get them? Let’s discuss.

Getting student loans without co-signer

Unless you have gone through the pain of filling out online or paper application for a student loan and get stuck at the end where you find out that you need a cosigner to finish the process, you won’t understand how bad it feels. Because it is time consuming and to make it worse you can’t get money for college. But before you stop right here, it is very important to know that you can still get student loans without co-signer, even with a bad credit. It is possible, and many students have gotten loans without meeting these requirements. Here is east to follow step by step to get around the cosigner requirements:

1. Get into college – that’s the first step. If you are not a college student, you are automatically disqualified from any college student loans that are available.

2. FAFSA – by now you should know what FAFSA is at the least. It is known as Free Application for Federal Student Aid. Yes, the application is not only free what it opens up the doorway to many free money as well as loans for college. Everybody should fill out FAFSA if you need money for college; that’s the bare minimum you should do at the least.

3. Check off all – students get to renew their FAFSA every year, and they ask if you want to get loans and work study besides the Pell Grants that you don’t need pay them back and is totally free.

4. Entrance counseling – once you are deemed eligible for student loans, you will receive a mail from your school’s financial aid office to enter college student loan entrance counseling; it is done online. Basically, you read few paragraphs online about the student loan basics and about becoming a responsible borrower; then after each section you get tested online too. If you get most of them correct, you move on; if you fail, you can take the test again right away.

5. Decide what type of loan – there are subsidized and unsubsidized direct loans, Stafford loans and private student loans. If possible, it is best if you can get away with the amount of money you get from subsidized Stafford loans and avoid private student loans. You don’t want to accumulate massive debt from high interest loans.

6. Reference versus Cosigner – read carefully what the student loans is exactly asking for. If it is asking for just a reference, then all you need is your reference person’s name, address and contact phone number; this person is willing to say that he or she knows you. Cosigner, on the other hand, means he or she will sign the student loans for you with you; basically the individual is borrowing money for you. Most students will only encounter a reference requirement when applying for loans; co-signer requirement is prevalent with private student loan applications.

7. Do you really need a cosigner now – requirements for student loans change very often and so does the amount of money that each loan can supply to students. Therefore, it is best to first fill out the application and then see whether you really need a co-signer. If you can do away with college loans that doesn’t need cosigner, congrats. If you can’t, read the next step.

8. How to get a co-signer for student loans? Usually, a cosigner for student loans will be your parents, family members or spouse. If none of them can’t cosign or are not willing to sign for you or can’t due to bad credit or some other reason, then reach out to close friends even though that’s hard. If nobody you know wants to be cosigner of your student loans, then go to online websites that help cosigners even though the success rate would be extremely low. Some students have tried exchanging or trading – where they cosign for one another.

9. Alternatives – Some of the best alternatives to private student loans that require cosigners are applying to regular student loans, working more, taking less classes to reduce tuition fees, applying for scholarships and financing where you only pay few hundred dollars per month instead of paying the entire balance at once to the college.

This article is useful for following information:

  • student loan cosigner requirements
  • What College Loans Dont Need a Cosigner?

One Response to “How to Get Student Loans without a Cosigner?”

  1. Dustin C. on October 15, 2011

    It maybe helpful for some loan applications to know what are the Co-Signer Requirements. To co-sign a loan, you must meet the following eligibility criteria:

    Be a U.S. citizen or permanent resident who is at least 18 years of age (some require you to be over 21 years old).
    Have a U.S. mailing address.
    Have a valid Social Security Number.
    Be creditworthy with a satisfactory credit history that includes at least 12 months of borrowing, charging and repaying. Having prior bankruptcies, liens, judgments, charge-offs, excessive 30, 60 or 90-day delinquencies on any loan may make you ineligible.
    Income requirements vary; but often it is over $10,000 per year.

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