Private loans seem like a logical next step if you still need money after using up all of your federal student loan amounts from your financial aid package. Although they can help you cover the cost of your education, private student loans frequently need a cosigner.
90% of new private student loans, according to data from the Consumer Financial Protection Bureau (CFPB), required a cosigner. Finding a willing cosigner for your debt may be tough. But there are student loans without a cosigner available. Here’s where to find private student loans without a cosigner.
7 lenders offering the best student loans without a cosigner
Private financial institutions that offer loans rely on your credit history to determine your eligibility. It can be challenging to get approved if you’re young and have weak or no credit history. However, some private student loans do not require a cosigner. Let’s review the best student loans without a cosigner.
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. Even though graduate students may have a higher chance of receiving approval for student loans without a cosigner, Sallie Mae still encourages graduate students to have a cosigner. Their loans are practical, and you can save time by submitting a single application to obtain funds for the entire year. Due to their extensive network of schools they can lend to, we have listed them first because they frequently convert the best for our readers. The remaining lenders we list alphabetically.
One of the few private student loan providers, Ascent, offers uncosigned loans to graduate students and juniors and seniors in college. In order to pay for your education and certain living expenses, you can borrow up to $20,000. That could be sufficient to cover costs for your final year or two of college without requiring parental assistance, along with Stafford loans and other financial aid. While in school, you can put off paying back loans, and Ascent gives you a 1% cash-back incentive after you graduate. If you enroll in auto-pay with Ascent, they will also reduce your interest rate for their undergraduate “future income-based loan” product by 1%. ¹.
For borrowers with good credit, Citizens Bank provides private student loans without a cosigner (more on that later). There are no application or origination fees. You can also score up to a 0. 50% interest rate reduction by signing up for autopay (0. 25%) and if you have an account with them already (0 25%). There are 5-, 10- and 15-year repayment term options available.
Although a cosigner and a minimum credit score are typically required for College Ave private student loans, you can check your eligibility for one without one here.
You can check if your credit score qualifies you for a loan on your own by using the pre-qualification tool at the company’s website using the link above. College Ave will require a cosigner for your private student loan if you are an international student.
Private student loans are available from Discover Bank without a cosigner, but approval is conditional upon having good credit. You will require a cosigner if your credit history is weak or nonexistent. However, if your credit has been established and is in good standing, you can obtain student loans without a cosigner. For international students who do require a cosigner who is a U.S. citizen, there is an exception. S. citizen.
Earnest private student loans have no prepayment or origination fees. Compared to some of the other lenders on this list, Earnest typically provides more benevolent borrower protections, such as a nine-month grace period (instead of the more common six months) and the option to skip one payment per year if necessary. Most borrowers who use Earnest need a cosigner. But highly qualified borrowers with some work experience might be successful in applying on their own. Earnest will pay up to $250,000 of the certified educational costs in full.
Funding U offers an undergraduate student loan without a cosigner. You are permitted to borrow up to $15,000 per academic year from smaller lenders, with a lifetime cap of $75,000 available. You can get pre-qualified quickly in just two minutes. They base their lending decision in part on information based on your federal loans as well as academic success. It is simple to obtain a private student loan without a cosigner because Funding U is one of the few private lenders that doesn’t require a credit history. Juniors and seniors will have the most luck being approved.
Federal student loans without a cosigner
It’s important to review your options for federal student loans as part of your financial aid package if you don’t want to take out a cosigned loan.
We’ve been discussing private student loans without a cosigner, but federal student loans should always come first because they have fixed interest rates and don’t require a minimum credit score. You can receive a discount on automatic payments when you sign up for them.
Examine the following when contrasting federal student loans with private student loans:
The fact that federal loans don’t require a credit check is the main distinction between them and private student loans. Rather, federal borrowers simply fill out FAFSA. Private student loans do call for a credit check because they are credit-based.
Additionally, the interest rates on federal student loans are fixed, while the interest rates on private student loans can be either fixed or variable. Federal student loans also give you more repayment options, and typically don’t require a cosigner.
Building credit to get approved
There’s no doubt about it. The caveat that you need to have good credit in order to be approved for private student loans without a cosigner appears to be shared by nearly all private student loan lenders. So you’re probably out of luck if you want student loans but have no credit history and no cosigner. But how do you obtain credit, and what exactly is good credit?
Experian defines good credit as having a FICO credit score of 700 or higher. Your credit score is a measure of your creditworthiness that aids lenders in determining your likelihood of repaying loans.
Your payment history and credit utilization, which together account for 65% of your credit score, are the main ways that credit is built. Following these actions may boost your credit:
Sites like Credit Karma or Credit Sesame allow you to monitor your credit score. You might have access through your bank or credit card as well. You can gradually establish credit by making on-time payments and keeping your balance low. A high credit score makes you more likely to be approved for independent loans.
Federal vs. private student loans
The same goal of both federal and private student loans is to help you pay for your education. Though they do the same thing, they’re wildly different. Government agencies issue federal loans, whereas financial institutions issue private loans.
While private student loans are credit-based and require a cosigner, the majority of federal loans do not require either a credit check or either. Apart from that, there are significant variations in the advantages for borrowers.
Federal student loan borrowers can opt for income-driven repayment to make monthly payments more affordable (in some cases $0). Borrowers also have deferment and forbearance options if they face hardships. On top of that, there is student loan forgiveness available under a variety of programs like the Public Service Loan Forgiveness Program (PSLF) as well as under income-driven plans if your balance isn’t paid off at the end of your repayment term. When you take out federal student loans, you have access to various repayment plans. You can have the Standard Repayment Plan or an Income-Driven Plan that suits your needs and more.
The benefits that private student loans can provide borrowers are constrained, and they can differ depending on the lender. But there’s definitely no forgiveness or income-based options. Therefore, using private loans can make it more difficult to pay off debt or reduce payments.
Private loans may also have higher interest rates depending on the private lender, your credit, and other variables.
Therefore, before even considering private student loans, we advise using all of your federal student loan options. Private student loans should only be used as a last option after careful consideration. If you do require private loans, there are crucial factors to take into account and you should compare several lenders to find one that works well for you.
For the 2022–2023 academic year, the most qualified borrowers may be able to find private student loans with interest rates that are lower than those offered on federal student loans.
What to be aware of with private loans
When you are prepared, visit AnnualCreditReport to check your credit report before applying for a private student loan without a cosigner. com to make sure everything is correct. You should dispute any errors with the credit reporting agencies if there are any. To see where you stand right now, you should also check your credit score. When you are confident that your credit is strong, you can apply.
But look into these things before accepting a private student loan without a cosigner:
All of these things have a significant impact on your experience as a borrower when you obtain a student loan. Compare lenders in order to find the lowest interest rate possible and maximize your interest savings. You should also be knowledgeable about your available repayment options to avoid any surprises. By exercising due diligence and being knowledgeable about these aspects of your loans, you can prevent any mistakes with private student loans. The more research you do, the better, because if you choose this path, you want to be ready to handle this on your own.
How can I get a student loan with bad credit and no cosigner?
- Borrow the maximum amount of federal student loans first. It’s generally a good idea to take out federal student loans first if you need to borrow money for school.
- Fill in the gaps with private student loans. …
- Build credit during college.
Can a student get a private student loan without cosigner?
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.
Can I get a student loan without a cosigner and no credit?
Federal student loans should be your first choice when looking for student loans without a cosigner. Most of these don’t require a cosigner and don’t run a credit check before you apply.
How can I get a personal loan with no credit and no cosigner?
- How to obtain a personal loan without cosigner or credit:
- Get a secured personal loan. When you use collateral to secure a loan, it doesn’t matter as much if you have good credit or bad credit.
- Take out a credit-builder loan. …
- Use your home equity. …
- Borrow from someone you know.