Federal Student Loans Without Cosigner

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Federal student loans don’t require credit history or a co-signer. Use them first because they are also the most adaptable when it comes time to repay.

But some students may require private student loans, which are based on credit, in order to afford college. Few private lenders provide loans for students without a co-signer. You’ll pay higher interest rates as a result.

Check out our suggestions and advice on how to look for a student loan without a co-signer.

Federal student loans don’t require credit history or a co-signer. Use them first because they are also the most adaptable when it comes time to repay.

But some students may require private student loans, which are based on credit, in order to afford college. Few private lenders provide loans for students without a co-signer. You’ll pay higher interest rates as a result.

Check out our suggestions and advice on how to look for a student loan without a co-signer.

Best Student Loans Without a Co-Signer

All student loan borrowers as their first option

Because they are eligible for income-driven repayment and loan forgiveness, federal loans are preferable to private ones.

Federal direct loans have some of the lowest fixed interest rates you can find and generous repayment flexibility.

More flexible repayment options for struggling borrowers than other lenders.

Subsidized loans do not collect interest while in school or during deferment.

Lower interest rates compared with private lenders.

You pay an origination fee.

No credit check or minimum income is needed to borrow.

Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000

Independent students and graduate students have higher loan limits.

Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate

10 to 25 years from the start of repayment, depending on the repayment strategy

Upperclassmen with no credit, income or co-signer

Future-based income: As opposed to your current income or credit score, your evaluation will be based on your potential for future income.

Ascent Independent Student Loan

Best for upperclassmen with good grades or independent students with good credit

Among the best for payment flexibility.

Grace period of 9 months is longer than most lenders.

International students are not eligible.

Freshmen, sophomores and those enrolled less than half-time are not eligible for future-income based loan.

Typical credit score of approved borrowers: Did not disclose.

Minimum income: $24,000 per year for credit-based loan. No minimum for future-income based loan.

Loan amounts: $2,001 to $200,000 per year with an aggregate loan limit of $200,000 for credit-based loan. $2,001 to $20,000 per year for future-income based loan.

5, 7, 10, 12 or 15 years

Bank of Lake Mills, a member of the FDIC, provides funding for Ascent Student Loans. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www. AscentFunding. com/Ts&Cs. Rates are valid as of 12/1/2022 and include a discount for automatic payments of 0 or 1. 25% (for credit-based loans) OR 1. 00% (for undergraduate outcomes-based loans). If the borrower enrolls in automatic payments from their personal checking account and the sum is successfully withdrawn each month from the authorized bank account, the automatic payment discount is available. For Ascent rates and repayment examples please visit: AscentFunding. com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score needed could change, and it might be influenced by the cosigner’s credit rating. Only our most creditworthy applicants and cosigners with the highest average credit scores are eligible for the lowest APRs, which demand interest-only payments, the shortest loan term, and a cosigner.

Students with a strong GPA

on Funding Us website

Funding U Private Student Loan

on Funding Us website

Best for independent high achievers enrolled in four-year programs with modest funding gaps.

You dont need a co-signer or credit history to get a loan.

You can see if you’ll qualify and what rate you’ll get without a hard credit check.

Loans arent available in 14 states.

Payment required while in school and during the grace period.

Typical credit score of approved borrowers: 650.

Minimum income: No minimum, but borrowers must demonstrate they can pay $20 per month toward their loan.

Loan amounts: $3,001 up to $10,000.

A.M. Money Private Student Loan

Most suitable for pupils who have a high GPA and go to one of the schools A M. Money works with. Although it is connected to Illinois, it lends to institutions across the nation.

GPA is used to determine eligibility instead of credit or a co-signer.

Offers a hard-to-find, temporary income-based repayment option for up to 36 months.

All borrowers get the same fixed rate, benchmarked to the federal PLUS loan rates.

Works with a limited list of schools.

Charges an origination fee.

Does not allow for bi-weekly payments via autopay.

Typical credit score of approved borrowers: Credit and a co-signer are not required. Approval is based on GPA.

Minimum income: No minimum. Approval is based on GPA.

Loan amounts: $2,001 up to the full cost of attendance, maximum $50,000

You must be a citizen of one of the 180 nations that MPOWER works with. DACA students do not need a Social Security number.

MPOWER Private Student Loan

Best for international students without co-signers and DACA students. Your earning potential and a track record of on-time payments will be taken into consideration; your credit score will not be taken into account.

Offers a hard-to-find option: non-co-signed student loans for international and DACA students.

Borrowers are assigned a dedicated student loan advisor.

Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.

Payment required while in school and during the grace period.

Offers only one repayment term: 10 years.

MPOWER considers future income potential but does not factor in credit scores.

Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $25,000 per academic period.

Stride Funding Income Share Agreement

Students majoring in STEM and health care fields typically need to be at least juniors in college to be eligible for income share agreements from Stride Funding.

Payments aren’t due if you’re unemployed.

Lending decisions are not based on your credit score.

You receive free career services, including job placement support.

There’s no discount for paying off your agreement early like some lenders offer.

Funding may not be available based on your school or major.

Not available in South Carolina.

Eligibility is based on factors like academic program and projected salary, not credit score.

Loan amounts: $3,000 to $25,000 annually; $50,000 lifetime maximum.

Payment cap: Two times the amount borrowed.

Income share percentages: Typically 6% to 9%; lifetime max is 20%.

5 years, but can extend to up to 10 years.

makes lending decisions based on future income rather than current income or credit score.

Prodigy Private Student Loan

Best for international students in the U.S. without co-signers.

Offers a hard-to-find option: non-co-signed student loans for international students.

You can see if you’ll qualify and what rate you’ll get without a hard credit check.

No fixed interest rates.

Prodigy Finance considers future income, rather than current income or credit score.

Loan amounts: $15,000 to $220,000.

7, 10, 15 or 20 years

Income Share Agreement for Nursing Students

Avenify Income Share Agreement

Avenify provides income share agreements to nursing students who will graduate in less than a year.

Periods of unemployment count toward your payment total.

Lending decisions are not based on your credit score.

You receive a discount for paying off your ISA early.

Funding is available only to nursing students.

Nursing certificate programs currently aren’t eligible.

You must be within 12 months of graduation to qualify.

Eligibility is based on factors like your GPA and potential cost of living, not credit score.

Loan amounts: $1,000 to $15,000.

Income share percentages: Typically range from 1.5% to 7.5%; average is 3.99%.

5 years, but can extend to up to 10 years.

How to shop for a student loan without a co-signer

Take out federal student loans first. Fill out the Free Application for Federal Student Aid, known as the FAFSA, to get access to federal loans, grants and scholarships. Federal loans should be your first stop: They offer lower interest rates and come with income-driven repayment plans and forgiveness programs.

Build credit before you apply for a private student loan. While undergrads generally don’t have the credit history required to get a loan in their own names, graduate students over age 21 might. You’ll have the best shot at a private loan with competitive interest rates if your credit score is 690 or above. Strengthen it before applying for a loan by fixing errors on your credit report, paying all bills on time and using as little of your credit limit as possible.

Compare loan features. When shopping for a private loan without a co-signer, compare offers to get the lowest interest rate you qualify for. Note whether the lender will postpone payments in case you have difficulty affording them, and for how long. Find out if there are origination, prepayment or late fees, and how easily you can reach the lender by phone, email or live chat if you encounter a billing or customer service issue.

Opt for a fixed interest rate. Given the choice, a fixed interest rate is a safer bet than a variable interest rate. It won’t increase over time.

Keep an eye on the bottom line. Use a student loan calculator to see what kind of payment you’ll face after borrowing for multiple years.

Consider refinancing in the future. Once you’re out of school and have built a credit profile, you may be able to refinance private student loans to a lower interest rate. You’ll generally need solid income, a credit score of 690 or higher and a history of on-time debt payments.

Student loans that don’t require a co-signer

Lender	Type of loan	Available to
Federal direct student loan	Requires no cosigner or credit history	All student loan borrowers as their first option
Ascent	Based on future income	Juniors and seniors
Ascent	Based on credit history	Borrowers with 680 or higher credit scores and adequate income
Funding U	Based on academic record and future potential	Undergraduates at eligible schools
A.M. Money	Based on GPA	Undergraduates at a limited list of schools
MPOWER	Based on earnings potential and positive payment history	International students
Prodigy Finance	Based on earnings potential	International grad students
Stride	Income share agreement	Primarily health care and STEM grad students; juniors and seniors may also qualify
Avenify	Income share agreement	Nursing students nearing graduation

STUDENT LOAN RATINGS METHODOLOGY

In addition to the top 10 lenders by market share and top 10 lenders by online search volume, our survey of more than 29 banks, credit unions, and online lenders that provide student loans and student loan refinancing also includes lenders that target niche or non-traditional markets.

For each financial institution, we take into account 40 features and data points. These can include the availability of biweekly payments through autopay, disclosures of the minimum credit score and income requirement, accessibility to borrowers in all states, longer grace periods, and in-house customer service, depending on the category.

Star ratings range from one star for poor to five stars for excellent. Ratings are rounded to the nearest half-star.

Learn more about our rating criteria for student loans as well as our editorial standards.

Last updated on December 2, 2022

To recap our selections…

NerdWallet’s Best Student Loans Without a Co-Signer of December 2022

You can receive federal student loans without a co-signer. A few lenders do provide funding to students without co-signers if you need to turn to a private loan after using all of your federal aid options.

Fill out the FAFSA to qualify for federal student loans without a cosigner. Private lenders who don’t require a co-signer might assess you based on your credit and potential future income.

To be eligible for a private student loan from Sallie Mae, the majority of undergraduate students will need a co-signer. According to the lender, 90% of its borrowers use a co-signer.

To qualify for a private loan, you probably need a credit score of at least 690. But in order to be approved, you must also satisfy the lender’s other financial requirements, such as having a reliable source of income.

Cecilia is a writer for NerdWallet who assists readers in navigating the world of college finances. Read more.

FAQ

Can I get a federal student loan without a cosigner?

Federal student loans don’t require credit history or a co-signer. Use them first because they are also the most adaptable when it comes time to repay. But some students may require private student loans, which are based on credit, in order to afford college. Few private lenders provide loans for students without a co-signer.

How can I get student loans if my parents won’t cosign?

If your parents won’t co-sign for a private student loan, you can ask a close family member or a reliable friend to do so. The co-signer will typically need to have income and a good credit score in order to qualify, though eligibility requirements vary depending on the lender and the loan you want to apply for.

Can my child get a student loan without a cosigner?

Direct subsidized loans and direct unsubsidized loans are the only federal loan options, aside from PLUS loans, that can be applied for and approved without a cosigner.

Will Sallie Mae approve me without a cosigner?

1. Sallie Mae. One of the most well-known private student loan lenders, Sallie Mae, does provide private loans without a cosigner, but they strongly recommend getting one for good reasons. Cosigners may be able to lower rates for undergraduates and help student borrowers qualify.