Can you Obtain a Student Loan to Pursue College Education Even if You Don’t Have a Cosigner?
Yes, you can. But unfortunately not too many students know about this, and simply pass up this chance of a lifetime – or at the very least, a gateway to the chance of a lifetime. There seems to be a common, but largely mistaken notion, that they will be asked for requirements that are impossible for them to meet, thus limiting if not totally blocking their means to pursue their dreams.
First off, it helps to remember that this country is not known as “the land of opportunity” for nothing. It thrived and continues to thrive on dreamers who weaved their vision on perseverance and hard work. With these traits, you can surely cast your own dreams and yes, live long enough to see them through.
You can’t do this with a negative attitude though. So if you’re determined to get that college degree, studied all the options and decided that taking out a loan is the best way to jump-start the journey towards your goal, then start with hopeful heart and, more importantly, a clear head.
Keep in mind, again that even in the United States, not all men are created equal in terms of economic class, but genuine efforts to create equal opportunities for everyone in the field of education is no lip service. Despite the hard economic times, the government has earmarked billions of dollars for deserving students with poor economic background to gain access to college education. If you do your research, you’ll know that student loans without co-signers are available from both government and privately funded sources.
Student Loan Without Cosigner
Your first task – and even before you fill up the first form – is to diligently pour over eligibility requirements and understand them. You will, of course, have to do this with more than one possible source. The idea is to have as many options as possible, study them, eliminate the ones for which you do not qualify, and pursue the ones for which you do. If you made it through high school, how difficult could that be?
Everyone knows that high grades generally translate to eligibility if not outright entitlement to a scholarship grant, direct financial assistance or a loan from the government. But you can also get the same privileges – particularly a loan – from privately funded sources, but with higher interest rates. As mentioned earlier, the operative words are high grades, if you’re after free education.
With good grades as your ticket, you can really go to town, so to speak, and have your choice of ivy league colleges or universities with no co-signers if you decide to take out a loan from the government, which should be your first choice, and private lenders. With excellent grades, perhaps a product of good genes from your parents and hard work on your part, you can even apply for scholarships and grants. But, of course, that’s not probably why you’re reading this article or have read this far.
Now if you’re an average student, like most everybody else, and come from a family with poor economic background, Uncle Sam would also look kindly at you and offer you options that are not too tough on your pocket. Funds provided by the government, more specifically by the United States Department of Education, are called federal student loans. The beneficiaries are chosen based on the financial need, not on creditworthiness or ability to pay.
Student Loans Without Cosigner and No Credit
This is an option open to students without credit history, job references, or an income of any kind. Since your financial need will be measured based on your actual educational requirements, less the capital you or your family is willing to contribute, you stand to get a higher loan value if you can show that you and your family are unable to contribute a significant amount of money to finance your college education. So it might help to put forth an application for this type of loan first before you consider looking into private student loans.
To do this, you fill up a FAFSA form or Free Application for Federal Student Aid. Yes, it’s free and can be easily accessed through the internet, but you need to file your application months in advance as it takes a couple of months or so before they can act on your application.
Filling up the application form is probably the most daunting part of the process of applying for a student loan without a co-signer. You need to understand what your lender is looking for, and you should be able to convince him that you deserve to be awarded the loan. This doesn’t mean you have to make up convincing answers.
On the contrary, you have to fill up each space carefully with accurate, honest answers and return the form to the lender with all the required attachments. You could be disapproved if the lender finds out you added false information in the form.
This may sound funny, but applying for a federal loan is not about convincing the government that you have the capacity to pay your loan. On the contrary, you need to convince the government that you plan to go to college, have no money, and you need help.
Applying for a loan from private lenders is the exact opposite. The tact is to convince them that you have the capacity to pay them back, given your credit record and employment history.
The FAFSA is your Key for Possible Federal Student Aid.
By applying for one according to an appropriate deadline, you open yourself to a wealth of possibilities, including federal student loans. Best of all, you can obtain federal loans with no co-signer and no credit checks. Once your application is approved, you’ll be notified by the school of your choice a few months later about the award package, detailing the financial aid that has been made available to you.
The amount of packages available to aspiring college students has recently been increased by the federal government, primarily to make it adequate for their needs and keep them from seeking out loans from private lenders. However, it’s still your decision if you wish to avail of more loans from other private sources to supplement your requirements. But it’s not going to be easy unless you have someone to cosign for you.
If you do receive a federal grant, then you really should be thankful for two main reasons. One, it has low fixed rates; and second, it has flexible repayment terms.
Federal student loans generally cost less than most private student loans, but the amount of loan has a certain ceiling to accommodate more borrowers. If you need a bigger budget for college, and if you’re approved because you have a good credit rating or a co-signer, you can borrow more money from a private student loan provider.
But then again, you have to look ahead after graduation when it’s time to pay for your loan. With a federal loan, you’re protected against possible unemployment and other exigencies. With private student loans, you’re faced with more interest charges and late-payment penalties that could bloat your original loan.
This is why private student loans should be treated as a final recourse when you have exhausted other possible forms of financial assistance. They’re very expensive and tough to discharge via bankruptcy, even if you file for one. The only positive benefit of private student loans is that they can cover all your college needs. But in the end, the drawbacks far outweigh the benefits.
Below are the Steps to Follow to Get your Student Loans Without a Cosigner:
- Do your homework. With computers and all, this is no longer a tough task. Find out what course you want to take up and which college you want to attend. Seek out what options are available to finance your education.
- Fill up an FAFSA (Free Application for Federal Student Aid). No, this is not a back-breaking task. All you need to do is open your computer and type “FAFSA.” You’ll need your social security number and your parents’ income tax returns for this. If you’re working, you’ll need an ITR as well. Fill up the form and click “send” for FAFSA to open for you the gate to federal student assistance.
- Apply for Stafford loan assistance. If you’re reading this article, this is probably for you. If you’re low-income, no credit, and no cosigner, you’re likely to get approved. The loan amount is not much, but it’s enough to set the tone.
- Apply for Perkins loan assistance. This is another federally funded loan assistance and is similar to Stafford. However, it’s meant for the neediest of the needy. If you think you belong to this category, then go for it. It goes by a low 5% interest with a longer payback period than Stafford.
If you’re a non-traditional student, usually a returning adult student, there are options available to you. It’s still possible for you to qualify for Stafford and Perkins loans, but there are also other scholarships and grants available for adult students returning to college to pursue degrees and their dreams.
The so-called American dream is not something that will come true while you’re asleep. The American dream is about your vision for yourself and for your family and loved ones. It’s about the sacrifice and hard work you’re willing to make to realize that dream.
It begins with education, an institution that helped and continues to help millions of Americans realize their dreams. It’s a tradition that lives on in hearts and minds of every American from whatever economic class and ethnicity, through federal-funded financial assistance.
For the government, it’s a social investment. For you, it’s an opportunity you will want to share with others by paying it back after your graduation so that others will enjoy it as well for now and in the future.
No related posts.