Apply for A Private Student Loan Without Cosigner: The Guide

How to apply for a private student loan without cosigner is the most important information if you want to get funds for your academics without a cosigner. Do you want to know more? Here is complete information on how to apply and the recommended lenders you can consider. 

How to Apply for a Private Student Loan Without Cosigner

If you are in a situation where you need a private student loan but don’t have someone to cosign the agreement, federal student loans are the answer. Here are steps that you should follow to apply for a private student loan without cosigner. 

1. Fill Out the Admission Form

Federal student loans do not need a cosigner and offer various benefits that private loans will not get. For instance, lower interest rates and access to income repayment and forgiveness programs. 

To be qualified for federal financial assistance, the first step that you need to do is to fill out a Free Application for Federal Student Aid (FAFSA).

2. Ensuring All Information You’ve Considered All Available Cosigner

The approval of private students is likely to be highly accepted if you have a cosigner. The statistics showed that the chances of approval without a cosigner are five times lower compared to having the cosigner. 

You must consider adding a cosigner before applying for federal aid because you will get a lower rate. Thus, if you get a cosigner, find the best private student loans and determine whether you qualify. 

3. Improving Your Chances to be Approved

Improving your chances is one of the most important things to do. Here are a few factors that you should make sure of. First, you need to stay up to date on the bills, Second, you need to reduce your credit score. The last one is checking your credit report to see whether it has some errors. 

4. Comparing Your Options 

A comparison list of the best student loans is highly advantageous before choosing a private student loan. This will help you to find which loans provide the most favorable interest rate. Additionally, you can evaluate the available repayment plans and determine whether any additional charges are applied.

5. Planning a Strategy For Repayment

After selecting suitable loans and receiving loan approval, plan a budget that includes your student loan payments to ensure you keep them in check. This is crucial because you have to make sure to pay the credit without any errors. 

3 Best Private Student Loans Without a Cosigner that You Can Choose

Applying for a private student loan without a cosigner can make you get the highest rate. However, you can explore private student loans after finishing federal aid. Federal financial aid will give you the money, and you don’t have to pay it back. Here is a list of the best private student loans without a cosigner.

1. Federal Subsidized

This loan offers repayment flexibility, it is claimed to have the lowest fixed interest rates among other loans. The repayment option will also help the loaner an easier way to pay. Subsidized will not collect the interest while the loaner is still in school or during deferment. 

However, if you choose this, you should pay an origination fee and need to be qualified as a loaner. The qualification is there is no credit check or minimum income to borrow. 

The loan amount for undergraduates is $5,500 in year one. For year two, the amount is $6,500, and in year three, it is $7,500, and the year after. The total amount for the loan is $31,000. The undergraduate student will get an interest rate fixed at 3.37%, and the graduate student will get a higher interest rate of 5.58%.

2. Ascents

Ascents don’t require a cosigner. It is designed for people without a credit history or who don’t require other Ascents loans. Various factors, such as school, academic program, graduation time, GPA, etc, will define the eligibility and interest rate. 

This loan is only available for juniors and seniors with a minimum GPA of 2.9 or higher. It doesn’t require an origination fee, offers a generous 24-month forbearance period, and provides a graduated repayment plan where payments begin at a lower amount and increase gradually over time. 

However, if you choose this loan, you should be a US citizen because they don’t allow international students to apply. Additionally, they have a low annual loan limit. The loan limits range from $2,001 to $20,000 annually, with a maximum aggregate limit of $200,000 for all Ascent loans combined.

3. Funding U

Finding U is one of the best student loans that don’t require a cosigner. Accordingly, they have established a unique eligibility model that doesn’t take your credit history into account since many students haven’t built one yet.

The eligibility is determined based on your academic performance in college, the graduation time, your plan for the student debt, and your anticipated earnings in your chosen major. Finding U may also consider the historical data of other students attending your school if the data is limited.

Furthermore, this lender also has other requirements for the people, such as a minimum GPA higher than 2.5 and a graduation rate determined by many factors. Also, you must be an individual who is either a U.S. citizen or an 18-year-old person as a permanent resident. 

The fixed rate is between 7.49% and 12.99% APR. This gives an amount of loans between $3,001 and $20,000. However, it is noteworthy that Finding U is only available in 38 states. 

Apply for A Private Student Loan Without Cosigner, Is It Worth?

To apply for a private student loan without cosigner is indeed helpful to get a fund from federal aid without a cosigner. However, before applying, you should consider that the interest rate will be higher than the regular loan so you can plan a strategy for repayment. 

Still, this option is worth it whenever you need a loan but have no guardian to back up. So, if you ever need help, use the three recommended lenders above. Consider it wisely, then prepare the requirements!