Exploring student loans to fund your education? This guide should help you out. Let’s look at this in detail. Every year there are millions of students that are in need of money for school and the first thought that comes to mind is to take out a student loan. The reality is that taking out a student loan should be last on your list as far as financial aid is concerned. Your first stop should be to look at Scholarships or grants. Why, simply because scholarships and grants do not have to be repaid. This is why grants and scholarships are heavily sought after and even with the numerous grants and scholarships that are available each year, it can realistically only help a few of the many thousands that apply for one.
Sometimes you will find that even with a scholarship or grant you are still short of money and you need either a second scholarship or grant or you need to look at a loan, a student loan to be more precise. You can apply for a student loan with a cosigner or without a cosigner. There are many advantages to applying for a student loan with a cosigner. However if that is not an option for you then read on.
No Cosigner Student Loans
Now that we are looking at student loans without a cosigner, your first option should always be federal student loans. These are loans provided or guaranteed by the federal government. You have both subsidized as well as unsubsidized student loans such as Stafford loans and Perkins loans that offer many many advantages. We have extensive details about each of these loans, read them to understand eligibility and how to apply. All federal student loans do not need a cosigner and if you are very particular about a student loan without a cosigner then these are your best options.
If you do not qualify for federal aid or you need additional funds your last option is to look at private loans. These loans are not guaranteed by the government and are made by private institutions such as banks and credit unions. Private student loans are given out based on the applicants credit score, history and credit worthiness. Unless you have good credit history your loan approval chances are very slim. Even if you are approved, your rate of interest will be very high. Most students applying to school will have very little credit history and therefore always prefer to apply for a private student loan with a cosigner.
Your only option in this case is to build up a good credit score, find a job to be able to show regular income and in the process improve your credit worthiness before you can think of taking out a student loan. This approach might be realistic for someone that is looking to study part time while keeping their day job going.
Getting a student loan with no cosigner is possible and is pretty straight forward with federal loans. It is with private loans that you might run into issues and will have to work with the lenders for loan approval and on terms that is attractive to both you as well as the lender.
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