Wanting to take out a student loan, but don’t have a cosigner? Maybe your parents are bankrupt, your friends are stingy, and/or you’re too shy to ask extended family. Don’t worry- here are some student loans you won’t need their help in getting:
Unsubsidized Stafford Loan– This federal student loan is available to students regardless of financial need. You can only take out a certain amount each year based on which year of schooling you’re in. For instance, Freshman usually have a cap of $3500.00- $5500.00, while upperclassmen and graduate students can borrow greater amounts. You will not require a cosigner or any credit history for this loan.
Subsidized Stafford Loan- Subsidized Stafford Loans are available to low-income students. This loan is better than the previous one because the government pays the interest on it while you’re in school, during the grace period, and during deferment. It does not require a cosigner or any credit history.
Perkins Loan- This loan is grabbed pretty quickly, and it is only given to the neediest students. It has a very low interest rate attached to it (5%). Your school will decide how much of a Perkins loan you can take out, but it is usually between $2000 – $4000. No cosigner or credit check is necessary.
Private Student Loans– Some Loan vendors will allow you to take out a loan without a cosigner, but you will need at least 27 months of established credit. The worse your credit is, the higher the interest on the loan will be, and the lower your chances of actually getting one.
People– All right, I know this sounds weird, but hear me out. If you can convince someone in your family/someone you know to loan you money, it would be for the best. You can even attach a little interest rate to it to sweeten the deal. If you want, you can try to borrow a small amount from different people in order to accumulate a lot overall. To assure them that you’re legitimate, sign a contract (if you’re 18+). Just make sure that you pay them back. The upsides to getting loans this way are that the interest rate will be low and fixed (most likely), and they probably won’t hassle you if your payment comes a bit late. Just try it. I recommend writing a letter detailing your future goals, why you need the money, and how you’re planning on paying it back to them. Then you can work out the details from there.
A Private Benefactor- There are some organizations that will pay for your education/loan you money if you sign a contract with them assuring a percentage of your future earning to them. The most popular of these companies is My Rich Uncle, found at http://www.myrichuncle.com. However, their program is on pause at the moment, and I don’t know when it will start back up again.
Sally Mae- This isn’t exactly a vendor, but there are many tips on how to get student loans on this website from many walks of life. Look into it a bit- you might be amazed. http://www.salliemae.com/.
Note: If you are expecting to get these loans, you had better submit your FAFSA as early as you can (January 1st) of the year you’ll be needing them, because some of the grants that may come with them (as well as the actual loan opportunities) go on a first-come-first-serve basis. When the money is gone, it’s usually gone until next year. You want to be one of the first people to get your paperwork in. Also note that your loan amounts will usually increase if you are an independent student. For instance, an independent Freshman in college can take out a Stafford loan of around $7500.00.
