With the college fees skyrocketing, it is obvious that many of the students need financial assistance in order to complete their higher studies. Not all students have financial backup to support the high cost of education. In such a situation, searching for affordable student loans is the most practical option to solve the fiscal problem. There are several loan options, which you can qualify for. You can apply for federal loans or private loans.
A majority of the private lenders set the eligibility criterion that the applicant should have a good credit. In case of students, it is expected that either they have a less impressive score or no credit at all. Otherwise, for obtaining a student loan with no credit history, there should be a cosigner to take the responsibility of repaying the loan amount, even if the student fails to repay the loan on time. Nevertheless, if you do not have a credit history, but still want to apply for a student loan without a cosigner, then the choices are limited.
You can go through the federal route or to private companies. The interest rate of federal loans is significantly lower than that of private loans. Following are the options that you can consider.
Federal Loans and Grants
Federal loans are the best option for obtaining educational financial aid without a cosigner. In addition to low interest rate, federal aids are no credit check student loans, meaning that you can qualify for the loan irrespective of the credit score. If you are an undergraduate or graduate, you can apply for federal loans by filling up FAFSA (Free Application for Federal Student Aid) form.
You can apply for both the federal loan types, namely Stafford and Perkins. Stafford loans can be subsidized or unsubsidized, based on who pays the interest while the student is pursuing education. In case the government pays the interest, then it is called subsidized. If you have a low income background, then you can qualify for subsidized Stafford loan. All these federal student loans are designated to students who are in great need for financial help.
In addition to federal loans, there are also scholarships and grants, which you can apply for. Gather the necessary resources and apply for these scholarships and grants (Federal Pell Grant). If you happen to get such financial assistance, then you are not required to repay the loan.
Speaking about private student loans without a cosigner, the chances of getting qualified depend on whether you have an impressive credit history or not. In case you do not have a good credit, you can still avail the student loan without a cosigner, but with a high interest rate and less features. Besides this, there are certain requirements such as the applicant should be above 18 years old and the admission should be in an eligible or recognized institution.
Some of the private creditors also offer bad credit student loans without cosigner. The eligibility criteria for this loan are bank account in your name, permanent residency, and both your parents should be working. However, make sure that you check the company's track record, interest rate, and the loan features before signing for such loans. On a concluding note, always apply for federal aid first and keep the private loans as the last resort, when nothing works out.