Ways To Get College Loans Without Having A Cosigner

Over the past decade, the recessing economy has made it quite difficult to get a job. Those without college degrees tend to have an even more difficult time to get a job, and because of this, going to college has quickly become a necessity for people looking to have a good career. At the same time, the cost of college has gone up dramatically, forcing most students to take out student loans. When applying for student loans, most banks will prefer that a parent or other person cosign the loans. While this is often preferred, there are several ways that a student could get a student loan without a co-signor.

One of the best ways to get a student loan without a cosigner would be to take out federal loans. The federally sponsored Stafford Loans are the ideal choice for someone that is looking to get a student loan without a co-signor. Stafford loans do not require credit check or income verification when applying for the loan. Furthermore, Stafford loans cannot be absolved via bankruptcy, so their risk of loss is much lower than a private student loan provider. Because of this, an applicant will almost always be approved a loan without the assistance of a cosigner.

While Stafford loans are widely available, many students will find that the interest rates are a bit higher than those provided by banks. Because of this, getting a private loan from a bank may end up being a better option. One way to get no cosigner student loans would be to provide collateral. If a bank receives an asset as collateral, the loan may not be considered unsecured, which will provide them with enough security to provide cosigner-less student loan. Some assets to pledge as collateral could include cash, a car, or various other personal assets. While this may help, it likely will not result in receiving enough money to fund an entire education.

Another thing you could do to help your chances of getting a loan would be to build your credit. Banks are often resistant to providing loans to students because they have no credit history. People that are looking to take out loans in the future should find ways to improve their credit history and score. Some great ways to do this would be to take out a prepaid or secured credit card, which will require them to make regular payments, which will then lead to a significant improvement in credit scores if they make the loan payments on time.

Showing some income is something else that many people overlook or just do not know about that will help. Banks avoid lending to students because most show no income. A student that shows that they have even a little bit of income will have a much better chance of being approved for a loan than a student that does not have a job. Students that are looking to apply for a loan will need to show that they have at least three or six months of experience at the same job in order for banks to place any credence on their income.

Chad is a writer who enjoys topics such as finance and college life. You can follow him on twitter @studentloanansw.

Related articles

• 5 Mistakes I Made in College and Wish I Could Do Over (whatisa529plan.com)
• Why Students Default on Their Loans (whatisa529plan.com)
• The Student Loan Debt Bubble – Infographic (whatisa529plan.com)
• Falling Behind On Student Loans? There are Options (whatisa529plan.com)

Category: College, Loans