Single Mom School Loans

Loans Without A Cosigner-Are You Really Better Off Without Loans Without A Cosigner?

Are loans without a cosigner possible to find? If yes, where do you find them? These might be just a few of your questions regarding non-cosigner student loans. Honestly, your choices for these are quite narrow. However, there are still many good options that you can take to serve as alternatives to loans without a cosigner.

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Generally, a cosigner is needed when applying for unsecured student loans. An unsecured student loan means that a borrower doesn’t need to apply with collateral. A cosigner is very important if you don’t have an established credit history, income, and a job. Take note that a cosigner is only needed for private education loans.



Sources for “free money” should always be your first options when looking for financial aid for college. Ask your parents if their companies have education scholarships and grants. As early as possible, file a FAFSA to see if you qualify for grants, campus-based aid, and perhaps the Federal Work-Study (FWS).

With the exception of PLUS loans, most federal education loans are not based on credit. They also have lower fixed interest rates, so you should always apply for them first. A PLUS loan does take into account adverse credit history. However, the credit check doesn’t really involve your credit score.

A credit score is a summary of your credit history. Lenders use this to assess an individual’s capability to pay off debts at the required amount and period. This is normally represented by a FICO score, which ranges from 300-850. If you want to qualify for a private student loan, you should have a 650 and up FICO score.

An education loan borrower (or their cosigner) with excellent credit history is mostly likely to receive lower interest rates because of their lower margin value. A margin value is needed when computing for your interest rate, which is the sum of the current LIBOR index plus the assigned margin value to an applicant.

Improving your credit score is really the best way to freely access alternative education loans. It will not take overnight, but it’s do-able. Just remember to be a consistent on-time payer and, if possible, pay the full amount. Never max out your credit cards. Also, don’t open new accounts if you won’t use them that much.

So, what if no one will co-sign for you? What’s next? Fortunately, there’s still a small portion of private education lenders that don’t use credit scores as bases. Their criteria for credit risk usually revolve around a borrower’s GPA, course, year level in school, and so on. Check out MyRichUncle.com, for instance.

Frankly, you’re really better off not using loans without a cosigner; the interest rates will really make repayments difficult. If you need additional sources for money for school, apply for student loans with cosigner rather than loans without a cosigner.