No Cosigner Student Loans are loans that can be approved for a student without the need for a cosigner. This usually applies with private student loans. This is loan option can be obtained or approved for student with good credit scores. If you need to borrow a loan to pay for tuition and other academic expenditures, then you should consider this loan. There are some important facts you should know about these loans approved for very few eligible students.
Cosigner student loans
It is important to highlight the role of a cosigner when it comes to student loans. A cosigner is another person signing for the loan with you (the primary lender). This person sureties or guarantees that you would be able to meet your loan obligation. In the event that you are not able to meet the obligation, the cosigner would partly liable for the debt. A cosigner can be your parent, relatives, spouse, friend or anyone who knows you. Lenders only consider cosigner with good credit history, a good debt to income ratio, and a steady income.
Private student lenders often will need a cosigner because most students don’t have a source of income nor the credit rating that would get loans approved for them. In the federal or government loans like Stafford or Perkins, a cosigner is not usually needed because loans approvals here are often based on needs.
No Cosigner Student Loans facts
If you want to apply for a private student loan because the federal loans are barely enough to meet your academic financial need, you should consider will need a cosigner. However, it is still possible to obtain these loans without a cosigner. Yes, it is possible since this loan option is based on your credit history. With a good credit history, a good debt to income ratio and a source of income, a lender can approve this loan for you.
If you don’t have a source income and cannot meet the lenders cosigner requirements, some lenders can still approve this for you. What you need do is to find a way to improve your credit. This can be done in many ways like: resolving any default or delinquent account, correcting mistakes on your credit report etc.
You should as well consider other option like going for:
- federal student loans
- educational grant
- work – study programs etc
With these options what would be more important is your credit scores.
Finally, you should also note that when a No Cosigner Student Loan is approved for you, the interest rate is often high.