Discover Ways to Get Student Loans without a Cosigner

Finance Guides announces a new series of informative articles to explain consumers' options when seeking student loans without a cosigner.

If you're a self-supporting student, chances are you're taking a part time job and the money you make is barely enough to get you through college. Maybe mom and dad send you money to pay for college but you find yourself needing more to pay for other expenses. What you need is to take out a student loans without a cosigner.

But where should you first run to if you want to get a loan? The government is your best friend when you want to take out student loans without a cosigner. Why? Because they give loans to help out students, not go make a profit. First is because federal student loans have very low fixed interest rates. Second is that federal student loans tend to have more flexible payment schemes.


Methods to Get Student Loans without a Cosigner from the Government

The federal government offers two kinds of loans that are given directly to students: the Stafford and Perkins loans. The interest rates are favorable to student borrowers. Not only are they smaller, but they're also fixed. Fixed interest rates, as the name suggests, have interest rates that do not vary over time. This will give you the opportunity to effectively plan your payment schedule. They also have more manageable payment terms. You only start payment on Perkins loans and subsidized Stafford loans after you graduate or leave school. Both loans have at least a 10-year repayment period. They are the safest way to get student loans without a cosigner.

Ever Heard of Stafford Loans?

The Stafford loan is by far the most popular option to get student loans without a cosigner. It has a low fixed interest rate of only 4.5%. There are two kinds of Stafford loans - subsidized and unsubsidized. Subsidized Stafford loans are only offered to students with financial need. Subsidized loans will not accrue interest until you graduate. This is unlike unsubsidized loans which immediately accrue interest upon the first loan payout.

To apply for a Stafford loan, you will need to complete a Free Application for Federal Student Aid (FAFSA), available online. How much you can borrow will depend on the information you have in your FAFSA. After receiving your first loan, you will need to fill out and file a Master Promissory Note (MPN). The MPN is a legally binding document that contains the terms and conditions of the loan. It also states your intention to pay back the loan.

How about Perkins loans?

Another relatively easy way to get student loans without a cosigner is through Perkins loans. The fixed interest rate of the Perkins loan is also low - only 5%. Interest will only start when you begin paying up, either upon graduation or leaving the school. You will be given ten years to completely cover all payments. To apply for a Perkins loan, all you need to do is to complete a FAFSA on the internet. You will also need to file an MPN when you get your first payout.

Knowing Ways to Get Student Loans without a Cosigner from Private Loan providers

If, for some reason, you are unable to get federal student loans, or you need more money than the Stafford or Perkins loans allow, you can get loans from private lenders. Take note though that this should be your very last option. Private lenders are the riskiest route to getting student loans without a cosigner. Remember that the purpose of these companies is to make money - out of you! Comparing private lenders against government loans, you'll notice that you're being asked to pay bigger interest rates. In addition, most will only offer variable interest rates that change over time depending on the global economy. Perhaps the riskiest part of getting loans from private lenders is dealing with the penalties. Private lenders have notoriously high late payment fees. It's very easy to owe more money from accumulated late penalties.