Student loans without cosigner or no cosigner student loans are special types of student loans available to students who have good credit scores or history. It is almost impossible for a student to get a private student loan without having a cosigner because most students don’t have credit scores. The few students who have credit scores have poor scores/ratings. Students who haven’t established a strong credit history find it very hard to qualify for no cosigner student loans because of strict lending policies. It is however possible for students to get no cosigner student loans.
Types of student loans without cosigner
There are certain kinds of federal student loans that can be considered as no cosigner student loans. This is because most federal loans consider factors such as financial need as opposed to credit history. This simply means that student applicants with bad credit history can still receive federal loans.
Examples of no-cosigner federal student loans include; Perkins and Stafford loans. These loans are awarded purely on financial need basis. The loans have very flexible repayment terms and low interest rates. In fact, the government pays all accumulated interest when students are still in school. Students do not need to reveal their credit history to get Perkins and Stafford loans.
It is possible to receive private student loans without cosigner. You must however raise or establish your credit score/history. Most private student loan approvals with no cosigner are for individuals that have worked for several years and want to further their studies.
No cosigner student loans benefits
One of the main benefits of no cosigner student loans is that students receiving these types of loans continue building their credit history thus allowing them to access other loans in the future easily. No cosigner student loans are also beneficial because they attract lower interest rate charges. Because applicants have good credit history, lenders do not need to charge high interest rates because loan default risks are low. No cosigner student loans also attract flexible repayment terms i.e. a longer repayment term, lower monthly repayments e.t.c.
Tips to consider when looking for student loans without cosigner
1. Consider government student loans: As mentioned above government student loans i.e. federal student loans are among the best no cosigner student loans. If you don’t have a cosigner, you should consider applying for federal student loans as opposed to private student loans because you won’t need a cosigner.
2. Build your credit: This is another important tip to consider when you want a no cosigner student loan. The main reason why lenders require a cosigner is because cosigners have good credit history. You can therefore work on getting a good credit history to increase your chances of getting a loan with no cosigner.
3. Use collateral: It is also possible for you to get a no cosigner student loan if you use collateral. Most lending institutions will agree to give you a student loan without a cosigner if you offer collateral. Examples of collateral you can use to get a no cosigner student loan include; a car, house, land e.t.c.