Finding Student Loans Without A Cosigner

You're graduating high school, applying to all your favorite colleges, and are ready to start the next phase of your life, but finding the funding for college can be a challenge. Most young people right out of high school do not have much in the way of savings or credit scores to fall back on. Fortunately there are a number of ways that the college-bound can find student loans without a cosigner.

The first step in figuring out your financial aid is to fill out the FAFSA (Free Application for Federal Student Aid) form.  This form details the financial state of both you and your parents and makes an estimate of how much you can reasonably contribute to your own college fund.  This form is used to determine need and may result in a number of different forms of financial aid.  Be sure to fill this out early and accurately, as it is the key to almost all federal student aid.

If you can, it is better to get student grants than loans.  These are a free contribution towards your tuition and never have to be paid back.  Some are based purely on need, like the Pell Grant, while others are based on need and qualification, like the SMART Grant.  It is important to do your research to see what you might qualify for.  Using grants to lower your financial need will prevent you from having costly loan repayment plans once you graduate.  Finding no cosigner student loans may be tricky, but there is never any need of a cosigner for grants.  Your qualification for these grants is largely determined by your FAFSA form as well.

Scholarships are another way to get help for college that doesn't have to be repaid.  These are largely dependent on your individual school, but a number of organizations offer their own private scholarships as well.  The qualifications for these funds can include financial need, academic excellence, belonging to a particular group, serving your community, having a particular special interest, or any number of other factors.  There is even a scholarship for designing and wearing a duct tape dress or tuxedo to the prom.  You will have to apply for these scholarships individually, but the payout may be well worth the effort.

A significant portion of the financial aid available to students is not based on credit at all.  For this type of student loans no cosigner is necessary, only financial need as determined by your FAFSA.  Federal loans also have the advantage of lower fixed interest rates and more flexible payment plans depending on your income and future schooling.  There are a number of different types of these student loans without a cosigner.

The subsidized Stafford Loan is a college student's best deal.  It is a need based loan, which means no credit scores, for full or half time students, and you have up to a full ten years to repay it.  The best part about this loan is that the interest does not begin accruing until after you graduate, meaning a lower repayment cost.  You don't have to start making payments until six months after your graduation date.

Unsubsidized Stafford Loans are essentially the same, except that the interest begins accumulating as soon as you take out the loan.  Fortunately you will still receive loan deferment until six months after you graduate and further deferment if you intend to go to graduate school.

The PLUS Loan (Parent Loan for Undergraduate Students) is also need based, but is taken out by the parents rather than the students.  If your parents have poor credit but still want to help you get the college loan money you need, you can get this student loan no cosigner necessary.  If your parents are unable to contribute for other reasons however, you will be unable to take out this type of loan.

You may also be able to apply for the Perkins Loan.  This is another need based student loan that goes solely to the student.  Typically the federal government gives a fixed amount for Perkins Loans to a university each year, so it is important to apply as early as possible in order to get the loans you need.

Private loans are typically the last type of loan a college student should apply for.  They are exclusively for students who need further aid after scholarships, grants, and federal loans.  These loans usually have a higher interest rate that accumulates immediately.  Many of them also require payments from the date you take out the loan.  These loans are owned by private companies, like banks, and will require a credit check.

It is possible to get this type of student loan without a cosigner, but you will have to spend some time building up your own credit.  Getting a part time job, using a credit card responsibly and entirely paying it off each month, or making your own car payments on time can all boost your own credit score and help you qualify for these loans.

Finding financial aid can be a difficult process, especially when you need to get all of your student loans without a cosigner.  It is doable, however.  Apply for grants scholarships, and federal loans first.  Talk with your university's financial aid services to see if there is any way in which they can help you.  And finally, if you must, take steps to boost your own credit score to qualify for private, no cosigner student loans.