There are many lenders who will allow student borrowers to get a student loan without a cosigner, even if they have bad or no credit history. Although this is true, the number of loans available to this targeted audience is very limited. With a little research and time however a borrower can find a qualified lender in their state based on their needs that does not require a cosigner. Here are some quick options that may be feasible.

The first step to finding these type of loans is to first complete the FASFA form. The FAFSA is the Federal Application for Federal Student Aid. This will always be the third party and life line to attaining any type of student loan with bad credit and to get other kinds of federal assistance. The FAFSA will determine how much the student qualifies for and can also open doors to grants. This way, students can find out if they will even need a student loan. If the student is under a certain age, they will need their parent’s income tax returns information including their social security number and other personal information.

Next, the student should get an up-to-date list of their credit report from the three credit bureaus, as this will let the borrower know where they stand and which loans they will qualify for. Going through this process will save them a lot of time and money. There are basically two type of loans the student should look into; private student loans and federal student loans. Private loans are based upon credit, however, more and more lenders are setting up multiple options for those with bad or poor credit. The student can apply for secure private loans which would require a small deposit. This small deposit would be held as collateral and will be held in a FDIC secured savings account that is monitored by the lender. The money in the savings account will not be used or touched, unless the borrower defaults on their loan and doesn’t pay back their loan in the set time that is noted on the loan contract.

Federal student loans are need based and are usually granted to students based on a number of factors such as academic performance and other types of merit qualifiers. These types of loans are easier to get because they do not go off the applicant’s credit score. In conclusion, students should first seek free college grants. Whatever amount that is left uncovered for college expenses can be paid out of pocket or with secure private loans. Getting a student loan with no cosigner is not as hard as it may seems, but it does take some research.

By: Christian Emerson

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Brian asked:


I am a community college student. I need money for expenses, not talking of tuition or books, because federal student aid is taking care of that…but is there any loans out there that I could take out, maybe a $1000-$3000 loan to buy a laptop, gas for my car, and maybe a pair of boots for winter? I have a bank account and good credit, but I just don’t have any money as I work seasonally. Plus my parents are poor and barely have enough to buy groceries.

When a student or parent sets out to obtain a loan and/or financing a college education there are a many different sources they can go to in order to acquire the funding necessary. However, there are two different categories of loans which are either federal loans or private loans.

As for federal funding for college, in many cases it is much easier to get the financing if you fit the criteria set in place. By far, one of the most popular federal student loans is the Stafford loan. There are two types of Stafford loans which are the federal family educational loan and the William D. Ford federal direct loan. The process of obtaining a Stafford loan is through the student filling out a federal student aid application, then once approved they will sign a promissory note on the loan.

The only real difference between the two types of Stafford loans is where the actual funding is coming from. For a direct loan, the funds are coming directly from the federal government as for a FFEL loan, the funding comes from either a bank, credit union or another participating lender in the program.

There are also a couple more that should be mentioned in this article and those are the Parent PLUS and Perkins loans. First, the Parent PLUS loan is designed for parents in need of assistance for paying their child’s college fees. This loan basically will fill in any gaps that the parent needs in order to cover all the college expenses fully.

The Perkins loan is basically a student loan which can be applied for at the college or university financial aid office which usually has a very low interest rat, but has a maximum loan amount of around $4,000 each year for students. They are federal fund and can be added to other types of funding. There are late fees and fees for skipping payments on the Perkins loan as well.

These loans and more can all be inquired upon at your selected college or university.

Credit history may not be as necessary if it is necessary at all in obtaining these types of funding options. As opposed to federal student loan funding, there are many private lenders willing to provide assistance for college funding as well. However, if you so decide to take the private lender route for financing a student loan, it is important to remember that most will need a bit of a credit history from the potential debtor and will most likely require a co-signer on the loan if the student with not much credit history at all is attempting to obtain the financing.

Federal funding for college students who need the financing, as well as parents is very available for anyone who has a need for such funding and it would be a good idea to look at all the options available in order to compare interest rates, fees, and more as these student loans will be around for a while after college as some loans will begin the payment schedule immediately during college like the Parent PLUS. Other repayment schedules will begin after 6 months for Stafford loans and 9 months for Perkins. So it would be a good idea to get all this information first hand before making any quick decisions about your college student loans.

By: S. Michael Windsor

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