According to a recent survey, conducted by US Department of Education, nearly two-third of the country’s fresh graduates have an average student loan debt of 25,000 USD on their shoulders. Very few candidates are able to fund their higher studies completely. To be precise, some students don’t even have a cosigner to help them with the loan procedures. This is when the hunt for student loans that can be acquired without a cosigner becomes prominent!
The loan market has plenty of options for deserving students, which can be acquired without a cosigner. And, in this article, you will read about these financing strategies.
Loan #1 – Federal Stafford Loans
The list of student loans that can be obtained without a cosigner begins with the Stafford Loans. This is a special loan funded by the Federal Government. The loan takes care of the borrower’s college tuition, living expenses and personal needs. It does not depend on the borrower’s credit background. Students who qualify for this financial aid should pay at a monthly interest of 4.5%. Moreover, borrowers are not expected to reimburse when they are in school.
Stafford Student Loans are classed into two different categories, namely the subsidized and unsubsidized Stafford loans. The prime difference between these two loans would be its requirements and interest rate. Students who qualify for subsidized Stafford loans must prove strong signs of financial need. Conversely, the Federal Government would pay the loan’s monthly interest on behalf of the student, during their college days! Additionally, the loan has a grace period of 6-months. On the contrary, unsubsidized Stafford Loans don’t have any financial constraints. And, borrowers should reimburse the loan (with its interest) completely before or after graduation.
Loan #2 – Perkins Loan
Another interest student loan that can be obtained without a cosigner would be the Perkins Loan! This is an exquisite loan for those with extreme hardships! Students who apply for the Perkins Loan must be academically strong and determined. They should be fully (or at least partially) enrolled in an accredited course. Generally, the Perkins Loan has a rock bottom rate of interest. Few interesting benefits of the Perkins Loan would be as follows:
- Perkins Loan delights borrowers with an interest of 5%.
- The loan does not charge additional fees or pre-payment charges from borrowers.
- The loan has a longer grace period than Stafford loans.
Stafford or Perkins, you should fill the FAFSA Application online. The Federal loans have a similar application procedure.
Loan #3 – Private Loans
Last but certainly not least, you can approach private loan lenders with special monetary plans for students who don’t have a cosigner. Private loans must be your last alternative. This is because private loans are usually customized for applicants with high credit scores and a stronger financial image. Private loans will not ask for a cosigner; nevertheless, students with a cosigner will have an increased chance of approval and a better rate of interest.