Applying For College Loans With No Cosigner
Monday, May 18th, 2009 Subscribe To Our Feed
With the cost of education continuing to rise from year to year it is getting harder to obtain the funds necessary for college and more and more students spend more time worrying about raising the funds needed than they do working at their studies. If this were not bad enough all too many students discover that once they have graduated they are left with so much debt that it quite simply drags them down and will take many years to repay. Now, if this paints a grim picture then for all too many students the problem of funding a college education is magnified by a requirement to raise the necessary money without having a cosigner for their loans.
Nowadays college funding is not merely a matter of turning to one single source of finance for most students but is a matter of creating a portfolio of funds from a variety of different sources.
The first port of call for all students should be to try to find scholarships for college and grants. Many students simply ignore this source of essentially free money altogether and yet it is surprising just how many scholarships and grants are available these days. In a lot of cases of course the amounts of money available are reasonably small but nonetheless can be extremely useful as one part of your overall funding plan.
The next port of call should be federal loan funding through schemes such as Perkins loans and Stafford loans which you can get as both unsubsidized and subsidized loans. Perkins loans are especially attractive because of their relatively low rate of interest but are also the hardest loans to obtain and require students to show particular financial hardship.
Sorry to say at this point despite the fact that you will have started to build your portfolio it is unlikely that this will give you sufficient funds and you will now need to start casting your net wider and will have two roads to follow.
If you are able to obtain the assistance and support of a parent or guardian then they may apply for a federal student PLUS loan to cover the difference between the money you have been able to get yourself and the actual cost of attending college. Student PLUS loans are subject to the parent or guardian having a fairly good credit history but the requirements are generally not as strict as those which would be applied by private lenders.
If you do not have a parent or guardian to whom you can turn or decide to go it alone then you will have to get a private loan and precisely how easy this will be will depend to a large extent on your own credit history. In almost all cases private lenders will be quite happy to offer you a loan if you have a good credit rating and will ask for a cosigner if you do not have a credit history against which they can make their decision or have a poor credit history. However, with more and more people with a poor or bad credit history today there is also an increasing number of private lenders who will offer loans without the need for a cosigner so it is merely a question of shopping around.
Student loans for bad credit without a requirement for a cosigner will naturally be more expensive than a normal good credit loan but if you take your time and shop around with care you will obtain a loan at a fair rather than exorbitant rate of interest.
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