Author Box
Articles Categories
All Categories
Articles Resources

Student Loans Without A Cosigner: There Are Options Available

April 04, 2012 | Comments: 0 | Views: 112

It is often thought that a student can kiss goodbye to any chance of a loan if they have no-one to act as a cosigner in the application. But this is not actually true. Millions of students manage to secure approval on student loans without a cosigner, and to finance another year or semester on campus.

What is true is that the amount available through cosigner-free student loans is limited - usually not more than $15,000. But this is at least a figure that can greatly ease the financial pressure they find themselves under.

What is important to consider, however, is that in order to get loan approval for students with bad credit, but without the benefit of a cosigner, some compromises may have to be made, not least in the form of higher interest rates.

Why a Cosigner is Preferred

It might seem strange that getting student loans without a cosigner should make such a big difference, but there are real reasons why cosigners are preferred by lenders. A cosigner included in a loan application guarantees that the monthly loan repayments will be made, even if the borrower is unable to make the repayment.

In essence, a cosigner can be considered human collateral, in that they provide the kind of security that lenders love to have. So, in the case of cosigner-free student loans, some serious issues will be more readily examined by lenders before giving approval.

However, it is essential that a cosigner meets the expected high standards before any hope of loan approval for students with bad credit can be harbored. The cosigner must have an excellent credit history and a large enough income to cover the repayments if it ever becomes necessary.

What to Expect

It is unrealistic to believe that any student loan without a cosigner required is going to be large enough to deal with all of the expenses incurred by being in college. Between tuition fees and living expenses, the cost of college is typically in the tens of thousands of dollars each year. In fact, fees alone can be as much as $50,000 per year, though that does depend on the college.

A cosigner-free student loan, however, is likely to start at around $2,000 and extend no further than $15,000. That kind of range is usually enough to handle living expenses, like rent, food and utility bills. It might also be enough to meet tuition fees but is unlikely to cover any more than part fees.

Crucially, however, without any cosigner to guarantee the loan, the interest rates will be higher so monthly repayments will be bigger. In order to get loan approval for students with bad credit, it is therefore necessary to choose a lender very carefully.

Ideal Lenders are Online

Thankfully, the task of finding a suitable lender is made all the easier by the internet. Generally speaking, student loans without a cosigner will be expensive. Online lenders, however, are known to offer lower rates of interest, and better terms.

In fact, cosigner-free student loans are common because many loans require no credit check. So a low credit score has no influence on an application. The repayment schedule is also a matter of negotiation, and often loan approval for students with bad credit comes with a delayed schedule. This means that repayments are not expected to begin until after graduation.

Of course, in issuing student loans without a cosigner, the lender is accepting a higher degree of risk, so interest rates will be slightly higher than normal. But with only the interest (or perhaps even nothing) to pay until graduation, the pressure is off in the short-term.

Sarah Dinkins is a financial advisor who has been associated with Unsecured Personal Loans since long ago. She also holds a master degree in economics from Harvard University. To find home loans with bad credit and other financial products visit

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Cosigner Free Student Loan


No Credit Student Loan


No Credit Check Student Loan


Student Loan Approval

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

Learn how to take advantage of the student loan forgiveness programs available to teachers. There are great benefits involved such as lower monthly payments.

By: Stephen Bisl Finance > Student Loansl April 24, 2012 lViews: 155

Whether you find yourself in the process of taking out loans or the process of paying them off, its imperative that you find ways to push back on the impending financial tsunami heading your

By: D. A. Bisl Finance > Student Loansl April 22, 2012 lViews: 183

How much will College cost? Where will we get the money? Borrowing from Permanent Life Insurance for college.

By: Walter Sewardl Finance > Student Loansl April 15, 2012 lViews: 179

An Article recently published by the International Business Times explored the potential for problems associated with aggregate student loan debt.  Since the total student loan debt outstanding

By: Doug Utbergl Finance > Student Loansl April 12, 2012 lViews: 186

You saved every penny you earned, worked like a slave, and even asked for help from friends and family. But that was not enough; you still need to know how to earn money for college tuition.

By: Luis Garcia De Alba Diazl Finance > Student Loansl April 11, 2012 lViews: 155

The option to further one's education is far greater today than ever before. There are good programs set up to help students and their families, which almost anyone can qualify for. Those who qualify

By: Angela Goldstein-Meyerl Finance > Student Loansl April 11, 2012 lViews: 175

Usually, people seeking to secure personal loans with bad credit scores are expected to see their efforts fail. But there are some options worth considering that can greatly improve the chances of

By: Sarah Dinkinsl Finance > Personal Loansl June 04, 2012 lViews: 143

Getting approval on a mortgage loan, with bad credit such a negative a factor, is not impossible. But a credit score will have an effect on the terms a mortgage may come with.

By: Sarah Dinkinsl Real Estate > Mortgage Refinancel June 04, 2012 lViews: 126

Securing a personal loan with bad credit is not easy, but rejection is by no means the end of the road. Armed with the reason for failure, the application can be fine tuned to succeed.

By: Sarah Dinkinsl Finance > Personal Loansl May 24, 2012 lViews: 161

If you have bad credit, finding a loan for $5000 is tough. However, there are options available to you, which this article will review in some detail.

By: Sarah Dinkinsl Finance > Personal Loansl May 02, 2012 lViews: 167

Loan applications can be stressful when credit checks are included. For that reason, military loans with no credit checks have become a popular option. But there are other factors to keep in mind.

By: Sarah Dinkinsl Finance > VA Loansl April 26, 2012 lViews: 151

Looking for $25,000 unsecured personal loans can be hard what with no security and low credit scores as both features. But by considering some issues carefully, your chances of approval are increased.

By: Sarah Dinkinsl Finance > Unsecured Loansl April 23, 2012 lViews: 178

Discuss this Article

comments powered by Disqus