Single Mom School Loans

Student Loans No Cosigner: Sources Of Money For School

Many use student loans no cosigner as additional sources of funding for some of their college education expenses. However, looking for these types of student loans can be a painstaking task. Your choices are very limited. So, where do you find these? Do student loans no cosigner even exists today?

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Naturally, federal loans and grants are the first options when finding ways to finance a college education. You apply for these by filing the FAFSA. Unfortunately, federal education grants and loans are insufficient because of very low limits. For example, the Stafford loans award only a maximum of $3,500 each year to a freshman student.

If you’ve already exhausted all federal education funds, you can always look for free sources of money for school. A killer GPA could greatly help you access many scholarship programs offered by corporations and non-profit organizations. If your parents are working, they could also ask if their company offers scholarship or grant programs for employees’ children.

Honestly, it’s almost impossible to find student loans no cosigner programs. Most private lenders highly require a cosigner. A cosigner serves as their assurance that someone will pay if ever the student defaults the loan. And even if you apply with a cosigner, he or she should still meet the lender’s credit, income, and citizenship requirements.

Each company has their own standards and requirements for qualifying a cosigner. Aside from satisfying the citizenship requirements, a cosigner should also be earning a certain yearly income level and has a satisfactory credit history. Take note that the duration of employment could also be used as a qualification basis.
Private student loans with cosigner are often attractive choices because of their faster approval time. They also have flexible repayment periods and competitive interest rates. The CitiAssist Student Loan program offers a 0.25% rate reduction if you use their auto-debit payment program; the U.S. Bank has a higher rate reduction of 0.50% for auto-payments.

Private education loans will normally allow students to borrow up the whole cost of their attendance minus other financial assistance. Wells Fargo, for instance, has a total borrowing limit of $100,000-$120,000. For Citibank, it’s $120,000 for undergraduates and $150,000 for graduates. Make sure to check your loan servicer’s interest rates and service charges before applying.

The eligibility requirements for a student borrower vary for each lending institution. But in general, a student should satisfy the credit, employment, and income requirements. A cosigner should also be present during application. Most banks require a student to be enrolled in a bachelor’s degree or post-baccalaureate program at an accredited U.S. college or university.

Exhausting your options for free sources of additional financial aid for college is always a good move. There are plenty of scholarship and grant programs out there, such as the U.S. Bank Internet Scholarship Program. As much as possible, you should only use student loans no cosigner as a last resort.