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Private Student Loans For Students With No Cosigner
If you've exhausted your federal student loans with your financial aid, but still need financing, private loans seem like a natural step. While private student loans help bridge the financial gap for your education, in many cases, private student loans require a cosigner.
How State Loans Can Help Finance Your Education
According to data from the Consumer Financial Protection Bureau (CFPB), 90% of new private student loans required a cosigner. Finding a willing cosigner for your debt can be difficult. But there are student loans without a cosigner available. Here's where to find private student loans without a cosigner.
Private lenders are private financial institutions that rely on credit to determine eligibility. When you're young and have limited or bad credit, or no credit history, it can be difficult to get approved. But there are some private student loans without a cosigner requirement. Let's review the best student loans without a cosigner.
Sallie Mae, one of the most popular private student lenders, offers private student loans without a cosigner, but they promote having one and for good reason. Co-signers can help student borrowers qualify and can help students get a lower rate. Graduate students may have a better chance of being approved for student loans without a cosigner, but Sallie Mae promotes a cosigner for them as well. Their loans are convenient and you can save time by applying once to get money all year round. We list them here first because they tend to turn out the best for our readers due to their large network of schools they can lend to. We list the remaining creditors in alphabetical order.
Ascension is one of the few private student loan companies that offers non-co-signed loans specifically for college juniors and seniors, as well as graduate students. You can borrow up to $20,000 per year for tuition and eligible living expenses. Along with Stafford loans and other financial aid, this could be enough to cover the costs of the last year or two of college without needing help from parents. You can defer loans while you're in school, and Ascent offers a 1% repayment incentive when you graduate. Ascent also applies a 1% discount on your interest rate for its graduate “future income loan” product if you sign up for autopay.¹
Undergraduate Student Loans
CitizensBank offers private student loans with no cosigner to borrowers with good credit (more on that later). There are no application or origination fees. You can also earn up to 0.50% off your interest rate by signing up for autopay (0.25%) and if you already have an account with them (0.25%). 5, 10 and 15 year repayment terms are available.
College Ave private student loans typically require a cosigner and a minimum credit score, but you can see if you qualify for a private student loan without a cosigner.
Using the link above, you'll be able to use their prequalification tool to see if your credit score is good enough for a loan on your own. If you are an international student, College Ave will require a co-signer on your private student loan.
Discover Bank offers private student loans without a cosigner, but you must have good credit to be approved. If you have limited or no credit history, you will need a cosigner. But if you've established credit and are in good shape, you can get student loans, with no copayments. There is an exception for international students who need a co-signer who is a US citizen.
Juno Negotiates Group Lending To Help Students Save Money On Private College Loans
Top private student loans have no down payments or origination fees. Earnest typically offers more generous borrower protections than some other lenders on this list, such as a nine-month grace period (the usual is six months) and the ability to skip a payment a year if needed. Most borrowers using Earnest require a cosigner. However, highly qualified borrowers with some work history can successfully apply on their own. Earnest funds 100% of the school's certified cost of attendance up to $250,000.
Funding U offers a student loan without a co-signer. As a small-scale lender, you can borrow up to $15,000 per school year, up to a lifetime maximum of $75,000. You can get pre-qualified quickly in just two minutes. They use information based on your federal loans as well as academic success as part of their loan decision. Funding U is one of the few private lenders that doesn't require a credit history, making it easy to get a private student loan without a cosigner. Young and old will have the best luck getting approved.
If you don't want to take out a co-signer loan, it's important to review your federal student loan options through your financial aid package.
We cover private student loans without a cosigner, but we always check federal student loans first because they don't require a minimum credit score and the interest rates are fixed. When you sign up for automatic payments, you can get an automatic payment discount.
Private Student Loans Without Cosigner
The biggest difference between federal student loans and private student loans is that federal loans do not require a credit check. Instead, federal borrowers simply fill out a FAFSA. Because private student loans are credit-based, they require a background check.
Also, federal student loans have fixed interest rates and private student loans can have fixed or variable interest rates. You also get more repayments with federal student loans, and in most cases, these loans don't require a cosigner.
There is no doubt about it. It seems almost all private student loan lenders have one caveat: To be approved for private student loans without a cosigner, you must have good credit. So if you have no credit history and want student loans, no co-company, you're probably out of luck. But how can you get credit? And what is good credit anyway?
According to Experian, good credit means a FICO credit score of 700 or higher. Your credit score is a value that shows your creditworthiness, which helps lenders determine how likely you are to do well with their loans.
Private Student Loans
Credit is built primarily through your payment history and credit utilization, which accounts for 65% of your credit score. By following these actions you can increase your credit:
You can monitor your credit score using sites like Credit Karma or Credit Sesame. Your bank or credit card may also give you access. By paying on time and keeping what you owe low, you can build credit over time. When you have a good credit score, you can get more loans.
Federal and private student loans serve the same purpose: to pay for your education. Although they do the same thing, they are very different. Federal loans come from the government; private loans come from financial institutions.
Most federal loans do not require a credit check or cosigner, while private student loans are credit-based and require a cosigner. In addition, there are significant differences in the benefits for borrowers.
What To Do If You Can't Afford Your Private Student Loans
Federal student loan borrowers can choose income-based repayment to make monthly payments more affordable (in some cases $0). Borrowers also have deferment and forbearance options if they encounter hardship. In addition to that, there are student loan forgiveness available under various programs such as the Public Service Loan Forgiveness Program (PSLF) and also under income plans if the balance is not paid at the end of your repayment. When you take out federal student loans, you have access to a variety of repayment plans. You can have the Standard Repayment Plan or Income Plan to suit your needs and more.
Private student loans are limited in the benefits they offer borrowers, and benefits may vary by lender. But there are certainly no forgiveness or income options. So if you want to eliminate your debt or make payments more affordable, it may be more difficult to do so with private loans.
Depending on the private lender, your credit and other factors, private loans may also come with higher interest rates.
Because of this, we recommend maxing out your federal student loans before considering private student loans. Private student loans should be a last resort and something that should be carefully evaluated. If you need private loans, there are important considerations to make, and you'll want to check with several private lenders to find a good fit.
Graduate Student Loan Guide
For more qualified borrowers, you may be able to find private student loans with better interest rates than those available on federal student loans for the 2022-2023 school year.
Are you ready to apply for a private student loan without a co-signer? First, check your credit report at AnnualCreditReport.com to make sure everything is correct. Yes
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