If you are looking to finance your college education, a private student loan is one of the best options out there. However, getting approved for a private student loan without cosigner can be difficult if you don’t have an established credit history or high enough income. Luckily, there are lenders who offer the option of getting a cosigner release after you’ve made 36 consecutive on-time payments and meet other criteria such as maintaining good credit scores.
This guide will help walk through some of those options so that you can find the best private student loan without cosigner for your needs!
Get Student Loan Without Cosigner
1 There are many ways to finance your college education. One of the most common options is by taking out a student loan.
There are many ways to finance your college education. One of the most common options is by taking out a student loan. The average student loan debt in America is $37,172. When you apply for a Federal Student Loan, you will be required to pass an underwriting process that considers factors such as your credit score and income level. You will also need to meet other eligibility requirements set forth by the Department of Education (DOE).
If you are unable to qualify for federal aid through DOE or another agency, there are private student loans available with lower interest rates than those found on federal loans. However, these loans typically require collateral and usually require cosigners if the borrower has no income or assets.
2 On average, students borrow $37,172 in student loans.
The average amount of student loan debt for graduates in the U.S. is $37,172. The amount you’ll have to borrow depends on your major and program at school, as well as the school itself. For example, students studying medicine or engineering at Ivy League schools will likely be able to borrow more than those studying history or social work at a community college.
On average, students borrow $37,172 in student loans.
3 Applying for a student loan doesn’t have to be complicated, confusing or time-consuming.
Applying for a student loan doesn’t have to be complicated, confusing or time-consuming. With a simple online application, you can get the money you need without having to visit any banks or government offices. You don’t even need to go to your local college campus!
Here’s how it works:
- Complete an online application with no paperwork or faxes required.
- We’ll check your credit score and confirm that you’re eligible for our lowest interest rates available on student loans. If approved by both Sallie Mae (our parent company) and the Department of Education, we’ll deposit your funds directly into your bank account within 48 hours!
4 Private student loans generally come with higher interest rates but they come with some attractive benefits that you won’t get from federal student loans.
Students who have perfect credit and cosigners with good credit can often get a better deal by applying for private student loans. Private student loans are not guaranteed or insured by the federal government, but they do provide some attractive benefits that you won’t get from federal student loans. Here’s what you should know about them:
- Lower interest rates
- Flexible repayment options
- Higher loan limits
- No origination fees (a percentage of your total loan amount) or application fees (a flat dollar amount) charged upfront on Federal Stafford Loans, which means more money in your pocket today! Also note that Federal Perkins Loans don’t require an application fee. All of these types of loans also have no prepayment penalties–you can pay them off ahead of schedule without having to pay any additional fees! And finally…the best part–they don’t require a co-signer!! So if you haven’t been able to qualify for one yet because your parents aren’t willing/able to help out financially (even though they probably would), now may be a great time!
5 Most private lenders will require you to apply with a cosigner if you don’t have an established credit history or a high enough income to qualify on your own.
For example, if you have no credit history and don’t meet the minimum income requirements for a loan, then your lender may require that you apply with a cosigner. A cosigner is someone who signs the agreement along with you and assumes some financial responsibility for the loan. That means both parties are equally responsible for repaying any outstanding balance and any late fees associated with the account.
To be eligible to use a cosigner on your student loans, they must:
- Be 18 years or older
- Have an established credit history (or good enough credit to qualify on their own)
6 Luckily, some lenders offer the option of getting a cosigner release after you’ve made 36 consecutive on-time payments and meet other criteria.
Some lenders offer the option of getting a cosigner release after you’ve made 36 consecutive on-time payments and meet other criteria. Other lenders offer it after 60 consecutive on-time payments, while still others will give you this option after 120 consecutive on-time payments or 240 consecutive on-time payments.
If your lender offers cosigner release, they usually require that all of their requirements have been met (such as making all the required monthly payments) before they can release your co-signer from their obligation to pay back your student loan debt if you defaulted.
7 Use this guide to help find the best private student loan without cosigner for you.
A cosigner is a person who agrees to be financially responsible for the loan if the student borrower does not fulfill their obligations. It’s standard practice for lenders to require a cosigner when lending money to students, but that doesn’t mean it’s always a bad thing. If you do get a private student loan with a co-signer and later have them removed from your account, it can result in lower interest rates and less hassle when applying for future loans.
In this article we’ll explain what getting rid of your cosigner means and how you can go about doing so. We’ll also tell you everything else you need to know about applying for student loans without one!
Hopefully, this guide helped you learn about the different types of private student loans available and how to get one without a cosigner. If you have any questions or concerns about your specific situation, don’t hesitate to reach out to us. We are here to help!