If you don’t have a strong credit history, then you might find that it’s tough to get loans without a cosigner. You might also find it tough to find someone who wants to cosign for you. However, there are different types of loans. Some are easier than others to get without an excellent credit history. For example, you might be able to get student loans without a cosigner.
What Is a Cosigner?
Just in case you’re unfamiliar with the term, a cosigner is a person with better credit history than you who agrees to add their name to the loan. This essentially provides insurance to the lender. Since you have a bad or no credit history, they aren’t sure if you’ll repay your loan. So, they ask someone else to cosign, agreeing to repay the loan if you fail to do so.
As you can guess, though, it’s tough to find someone who wants to take on that financial risk for you. Parents or other family members are the most common cosigners. You might have friends who would be willing to cosign for you. However, if you’re all young and starting out, then it’s possible none of you have the credit history necessary to qualify for cosigning.
Ways to Get a Student Loan Without a Cosigner
Luckily, you can sometimes get a student loan without a cosigner. Here are some of your best options:
1. Establish Good Credit Early
If you’re thinking ahead before college, then you can start to establish good credit while still in your teens. Therefore, you lower the need to get a cosigner. After all, if you already have good credit yourself, then lenders are more likely to trust you with student loans.
2. Apply for Government Loans Through the FAFSA®
This is the first thing you should do when you start looking into paying for college. You fill out the FAFSA to find out what types of student loans you are able to get through the government. Everyone who goes to college should fill out this form to get started. Usually, the loans you qualify for through FAFSA don’t require a cosigner.
3. Apply for Grants
There is a lot of financial aid available to assist you with paying for college. Exhaust your resources! Apply for grants of all kinds. Grants are free money to help you pay for college. Since they aren’t a loan, they don’t require a cosigner.
4. Apply for Scholarships
Scholarships are similar to grants. The primary difference is that grants are typically given for financial need, whereas scholarships are given based on merit. So, if you’re an athlete or a musician or can write a great essay, then you might have good luck with scholarships. Again, since this is free money, no cosigner is required.
5. Get Paid to Go to College
Avoid the need for loans entirely by getting paid to go to college. The military is the best example of a program that pays for you to go to college. However, some companies and large businesses also offer tuition payments.
6. Research Non-Cosigned Loans
Exhaust the resources above first. However, you might discover that you still need more loan money for school. This is where non-cosigned student loans come in. Yes, there’s such a thing.
Lenders, such as private student loan company Ascent, work specifically with students and offer cosigner and non-cosigned loans for graduate and undergraduate students. As you review your options, check out Ascent and their student loans, monthly scholarships opportunities, cash back rewards, and more for students.
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