You have options when it comes to finding student loans without cosigner and no credit. Lenders understand that college is expensive and students, who are young and don’t have a credit history, will need help to finance their books, tuition, and other education expenses.
You may not qualify for independent loans if you have no credit, so it is best to turn your attention to loans that are funded by the government.
This financial aid you need to apply for, using the Free Application for Federal Student Aid — also known as the FAFSA.
FAFSA
The FAFSA is a standard application that all college and universities require you to fill out to determine if you are eligible for financial aid.
This application uses your income, the income and assets of your parents, and size of family to calculate the Expected Family Contribution, which creates a Student Aid Report.
This report serves as a college and university’s tool to determine if you are eligible for grants, loans, and any other types of assistance — all of which provides you with student loans without a cosigner and no credit.
Stafford loans
Stafford loans are given to students in two forms: subsidized and unsubsidized. The difference between the two is who pays interest while you are getting your education.
A subsidized loan, which is what you want, is given to students who have the greatest need to finance their education. This usually means those who have no credit history and come from lower-middle class families trying to make ends meet will qualify for one of these.
An unsubsidized loan is just the opposite: You pay interest from the day the money is sent to your college or university.
Although you may pay interest from day one, you will still get the loan and be able to finance your education, so it is a pretty good deal.
One item to keep in mind is that how your parents claim you on their taxes has a big impact on a Stafford loan.
When you are claimed as a “dependent” on your parent’s taxes, their income — and how much they theoretically could contribute — will be factored in to your financial aid award.
As you expect, this can be bad news if your family makes a good deal of money but is not helping you pay for college.
When you are no longer claimed and are consider “independent,” only your income is factored into your award, which means you will get a higher loan limit.
Perkins loans
Perkins loans are funded by the federal government as well. Higher education institutions administer these loans to students who exhibit extreme financial need.
These loans are more orientated to students with incomes that are low-income — lower than $25,000 annually.
If you qualify — and you still should submit to this when filling out your FAFSA — you could potentially receive up to $5500 annually but no more than $27,000 total.
You would pay interest on this loan, but it does allow you get a student loan without a cosigner.
Private college loans
You may find that a private educational facility is willing to offer a student loan through them. The university I attended did this.
I did not have a solid credit history and receive a small amount of financial aid from my school, with a six-month grace period until I graduated.
These kind of loans are out there and it is best do a little research, checking with your college and checking with banks and credit unions, who may be willing to fund your education with a low-interest rate loan.
With a little searching, you may find one that will provide a student loan with without a cosigner. You might even find alternatives to loans.
Lenders will be more willing to take a risk if you have a good job and the means to pay the student loan back.
As you can see, there are a few options available to find financial aid if your credit history is limited. But you will have to do some calling around to financial institutions and rely on federal government loans to help you through your education. I hope this article about student loans without cosigner no credit has been of help to you.
