Do Student Loans Without A Cosigner Exist

Q: Do Student Loans Without a Cosigner Exist? If so, how do I get a student loan without a cosigner, and where can I apply?

A: This is a very common student loan question, and it is typically asked in reference to private student loans. It is important to keep in mind that private student loans are very similar to most other types of loans, and in most cases having no credit, bad credit, or the lack of a creditworthy cosigner (if you do have poor/little credit history) will hurt your chances of securing private student loans.

However, there are federal student loans for college you can apply for which are not based on credit. Federal student loans are need-based loans that are based on your financial need, rather than your credit history. Applying for federal student loans is done by filing a FAFSA (Free Application For Federal Student Aid). It is recommend that all college students exhaust their Federal Financial Aid options before moving onto private student loans, since federal student loans often offer the best interest rates and repayment options.

Depending on your credit history / credit score, you may not need a cosigner for your private student loans. Many times students are under the perception that you automatically need a cosigner for private student loans, this is not true. Borrowers can secure private student loans for college if they are in good credit standing. It will be important for all borrowers, regardless if they need a cosigner or not, to compare different student loan lenders, understand the terms and rates of the loan, and get answers to any questions they may have before locking into the loan.