help for private student loans

The first step to getting a student loan without a cosigner is to apply for admission to the college of your choice. If you are accepted, you will be asked to fill out an application for Federal Student Aid (FAFSA). This form is used by the government to determine whether or not you qualify for student loans and grants. The FAFSA also helps determine how much money you can borrow. In this article we will discuss help for private student loans, Federal Student Loans Without Cosigner, Personal Loans Without Cosigner, Private Student Loans For Bad Credit And No Cosigner and Steps For Taking Out A Student Loan Without A Cosigner.

How to Get a Student Loan with Bad Credit or No Credit - Bestmarket Inc.

Once you have been accepted into college and filled out your FAFSA application, you will receive a Student Aid Report (SAR). This report contains information about your financial situation and how much money you may qualify for in terms of federal financial aid. The SAR also indicates whether or not you will need a cosigner for any loans that you take out. You will need this report when applying for private student loans without a cosigner as well as when applying for federal student loans without a cosigner. Read on to know more on help for private student loans, Federal Student Loans Without Cosigner, Personal Loans Without Cosigner, Private Student Loans For Bad Credit And No Cosigner and Steps For Taking Out A Student Loan Without A Cosigner.

help for private student loans

We begin with help for private student loans, then, Federal Student Loans Without Cosigner, Personal Loans Without Cosigner, Private Student Loans For Bad Credit And No Cosigner and Steps For Taking Out A Student Loan Without A Cosigner.

Private student loan volume grows when federal student loan limits remain stagnant.

Private student loan volume grew much more rapidly than federal student loan volume through mid-2008, in part because aggregate loan limits on the Stafford loan remained unchanged from 1992 to 2008. (The introduction of the Grad PLUS loan on July 1, 2006 and the increases in the annual but not aggregate limits had only a modest impact on the growth of private student loan volume. The subprime mortgage credit crisis of 2007-2010, however, limited lender access to the capital needed to make new loans, reining in growth of the private student loan marketplace.) The annual increase in private student loan volume was about 25% to 35% per year, compared with 8% per year for federal loan volume.

Then the Ensuring Continued Access to Student Loans Act of 2008 increased the annual and aggregate loan limits on the federal Stafford loan starting July 1, 2008. This shifted significant loan volume from private student loan programs to federal. Private student loan volume dropped in half in 2008-09, according to the College Board’s Trends in Student Aid 2009.

Private student loan volume is expected to return to the 25% annual growth rate unless there is another increase in federal loan limits or an expansion of the availability of federal student loans. For example, the proposal for expanding Perkins loan funding from $1 billion a year to $8.5 billion a year will cause a significant decline in private student loan volume. But so long as federal loan limits do not increase every year, private student loan volume will continue to grow at double-digit rates.

If current trends continue, annual private education loan volume will surpass federal student loan volume by around 2030. Accordingly, it is important that students have tools they can use to compare different private student loans.


As a general rule, students should only consider obtaining a private education loan if they have maxed out the Federal Stafford Loan. They should also file the Free Application for Federal Student Aid (FAFSA), which may qualify them for grants, work-study and other forms of student aid. Undergraduate students should also compare costs with the Federal PLUS Loan, as the PLUS loan is usually much less expensive and has better repayment terms. Grad students can find the best graduate loan options on Finaid as well.

The fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can ultimately cost more than a loan with a somewhat higher interest rate and no fees. (The lenders that do not charge fees often roll the difference into the interest rate.) A good rule of thumb is that 3% to 4% in fees is about the same as a 1% higher interest rate.

Be wary of comparing loans with different repayment terms according to APR, as a longer loan term reduces the APR despite increasing the total amount of interest paid. Finaid’s Loan Comparison Calculator may be used to generate an apples-to-apples comparison of different loan programs.

The best private student loans will have interest rates of LIBOR + 2.0% or PRIME – 0.50% with no fees. Such loans will be competitive with the Federal PLUS Loan. Unfortunately, these rates often will be available only to borrowers with great credit who also have a creditworthy cosigner. It is unclear how many borrowers qualify for the best rates, although the top credit tier typically encompasses about 20% of borrowers.

Generally, borrowers should prefer loans that are pegged to the LIBOR index over loans that are pegged to the Prime Lending Rate, all else being equal, as the spread between the Prime Lending Rate and LIBOR has been increasing over time. Over the long term a loan with interest rates based on LIBOR will be less expensive than a loan based on the Prime Lending Rate. About half of lenders peg their private student loans to the LIBOR index and about 2/5 to the Prime lending rate.

Some lenders use the LIBOR rate because it reflects their cost of capital. Other lenders use the Prime Lending Rate because PRIME + 0.0% sounds better to consumers than LIBOR + 2.80% even when the rates are the same.

It is not uncommon for lenders to advertise a lower rate for the in-school and grace period, with a higher rate in effect when the loan enters repayment.

Federal student loans are not available for expenses incurred by law, medical and dental students after they graduate, such as expenses associated with study for the bar or finding a residency. There are two types of private student loans for these expenses:

  • A Bar Study Loan helps finance bar exam costs such as bar review course fees, bar exam fees, as well as living expenses while you are studying for the bar.
  • A Residency and Relocation Loan helps medical and dental students with the expenses associated with finding a residency, including interview travel expenses and relocation costs, as well as board exam expenses.


Key information to understand student loans includes being aware of the annual and cumulative loan limits, interest rates, fees, and loan term for the most popular private student loan programs. Often the interest rates, fees and loan limits depend on the credit history of the borrower and co-signer, if any, and on loan options chosen by the borrower such as in-school deferment and repayment schedule. Loan term often depends on the total amount of debt.

Most lenders that require school certification (approval) will cap the annual loan amount at cost of education less aid received (COA-Aid). They may also have an annual dollar limit as well.

Lenders rarely give complete details of the terms of the private student loan until after the student submits an application, in part because this helps prevent comparisons based on cost. For example, many lenders will only advertise the lowest interest rate they charge (for good credit borrowers). Borrowers with bad credit can expect interest rates that are as much as 6% higher, loan fees that are as much as 9% higher, and loan limits that are two- thirds lower than the advertised figures.

The APRs for variable rate loans, if listed, are only the current APRs and are likely to change over the term of the loan. Borrowers should be careful about comparing loans based on the APR, as the APR may be calculated under different assumptions, such as a different number of years in repayment. All else being equal, a longer repayment term will have a lower APR even though the borrower will pay more in interest.

This page provides a basic comparison chart that highlights the key characteristics of the major private education loans. FinAid also provides a separate list of private consolidation loans. In addition to the private student loan programs, there are several websites like Credible and other student loan comparison sites that provide tools for comparing private student loans which help identify the loans that match your criteria.

Private student loans are a great way to make sure you can afford your education. Here’s some information about how they work, and what you should know before taking out a loan.

How do I qualify for a private student loan?

The answer depends on where you go to school and what kind of degree program you’re pursuing. Generally speaking, though, if you don’t qualify for federal student loans (and sometimes even if you do), there may be options available through one or more private lenders who specialize in helping students pay for their education.

What kinds of things should I consider before taking out a private student loan?

There are several factors that may influence whether or not it makes sense for you to take out this type of loan:

Your credit score: Your credit history will play an important role in determining whether or not the lender offers approval for your application. If your credit score is too low, it may be difficult to get a loan.

If you have no credit history, a lender may require you to get a cosigner. A cosigner is someone who agrees to pay the debt if you can’t. The cosigner must have good credit and income levels that meet the lender’s requirements.

Federal Student Loans Without Cosigner

Next, we review Federal Student Loans Without Cosigner, Personal Loans Without Cosigner, Private Student Loans For Bad Credit And No Cosigner and Steps For Taking Out A Student Loan Without A Cosigner.

8 student loans without a co-signer:

  1. Federal Subsidized/Unsubsidized Loan
  2. Ascent Private Student Loan
  3. Funding U Private Student Loan
  4. A.M. Private Student Loan
  5. MPOWER Private Student Loan
  6. Prodigy Private Student Loan
  7. Stride Funding Income Share Agreement
  8. Avenify Income Share Agreement

Federal student loans don’t require credit history or a co-signer. They’re also the most flexible when it’s time to repay, so use them first.

But to afford college, some students may need private student loans, which are credit-based. A small number of private lenders offer student loans without a co-signer. You’ll pay higher interest rates as a result.

Best Student Loans Without a Co-Signer

LenderNerdWallet RatingMin. credit scoreFixed APRVariable APR
Federal Subsidized/Unsubsidized Loan5.0/5
Best for All student loan borrowers as their first option
Ascent Independent Student Loan5.0/5
Best for Upperclassmen with no credit, income or co-signer
A.M. Money Private Student Loan4.5/5
Best for Students with a strong GPA
MPOWER Private Student Loan4.5/5
Best for International students
Prodigy Private Student Loan4.5/5Best for International graduate studentsN/AN/A7.52-12.00%
Stride Funding Income Share Agreement4.5/5Best for Income share agreementsNoneN/AN/A
Avenify Income Share Agreement5.0/5
Best for Income Share Agreement for Nursing Students
Funding U Private Student Loan5.0/5
Best for Students with a strong GPA

Personal Loans Without Cosigner

Now, we find out Personal Loans Without Cosigner, Private Student Loans For Bad Credit And No Cosigner and Steps For Taking Out A Student Loan Without A Cosigner.

Most traditional lenders require cosigners for loan applicants with bad credit or no credit history. A cosigner shares responsibility for repaying the loan and has to make payments if you fail to do so.

Students and immigrants, in particular, often have to depend on a cosigner, as they tend to have little or no credit history in the US.

Unfortunately, those who need a cosigner the most are often unable to find one. Students and immigrants might not know US citizens with good credit and are forced to find alternatives that don’t require a cosigner.

In this guide, we go over what types of loans you may be eligible for if you have no credit history and no cosigner, specific lenders to check out, and more.

4 Ways to Get a Loan Without a Cosigner & Bad or No Credit

If you are a student, immigrant, or anyone else struggling to find a cosigner while also having bad or no credit history, the task of getting a loan can be daunting.

But with research and the right help, you can secure a loan with no credit. Read on or click an option below to jump down:

  • Online personal loan lenders
  • Secured loans
  • Loans from credit unions
  • Payday loans

Let’s dive in:

1. Online Personal Loan Lenders

There are online lenders (such as those highlighted below) that offer personal loans to those with no cosigner and limited/poor credit histories—such as students and immigrants.

Whereas banks often primarily consider your credit score, online lenders take into account other aspects of your life. They look at your income, employment status, and reasons for needing the loan while also offering competitive interest rates.

Online lenders have to compete with banks and other online lenders. If you do your research and find the right company, you could be surprised that you not only get a loan but one with a good interest rate and repayment terms.

2. Secured Loans

Although you may not have a cosigner, you may have something of value that can act as collateral for the loan.

Whereas a cosigner acts as extra protection to help you become eligible for a loan, a secured loan uses possessions like cars, boats, and motorcycles to make up for a lack of credit experience.

As an immigrant or student, for example, you may not have had time to form the trusting bonds that are required for someone to cosign for you. You may, however, have an item of value that you can risk to secure a loan.

In essence, this valued possession acts as a cosigner. It means you are willing to have that item repossessed if you default on your loan.

3. Credit Unions Loans

Credit unions can be a direct antidote to those struggling with finding a cosigner. Credit unions are designed for people who share similar characteristics with similar financial interests to join a collective group that supports them.

If you are an immigrant of a certain ethnicity, there are credit unions across the United States that are designed to accommodate the financial handicaps that come with your circumstance.

If you apply and are accepted as a member, then you can receive financial assistance from a fellowship that shares common demographic characteristics.

4. Payday Loans

Payday loans are an option—but a very risky one—for those having trouble finding a cosigner.

Payday loan providers sell themselves as a quick and easy stop for cash on the spot, and there is some truth to that. With a driver’s license, Social Security card, and a post-dated check, you can leave with cash in hand.

However, with extremely high interests rates, relying on payday loans can be like stepping in quicksand. The quick fix option is exactly what they provide to hook you into further mounting debt.

If at all possible, you should avoid payday loans however you can.

3 Online Personal Loan Lenders That Don’t Require Cosigners

If you choose to go the online lender route for getting a personal loan, you’ll have a few options, including:

  • Stilt
  • Avant

Here’s a closer look at each:

1. Stilt

Stilt is an online lender that offers personal loans to students and immigrants with a lack of credit experience.

Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender.

Stilt considers factors other than credit history when determining eligibility, such as employment/employability, education, and financial behavior.

Another great thing about Stilt is that it reports your monthly payments to the credit bureaus each month, helping you build your credit score as long as you make on-time payments.

Stilt’s loan application process takes less than 5 minutes and you can receive an offer within 24 hours.

2. Avant

Avant is a competitive online personal lender that can disburse money to your bank account within a day if you are approved. The only issue is Avant has a minimum credit score of 600. Those without any credit history or credit scores below 600 may not be eligible.

3. is another option for those with bad credit or no credit history at all. The company is not a lender itself but connects you with bad credit loan offers that you may be eligible for. If you do not have a cosigner, is a potential avenue to explore.

Who Do People Typically Use as Cosigners?

A cosigner is a person assuming co-responsibility for your loan. He or she is liable to make payments to the bank or financial institution on your behalf, in case you fail to do so. In addition, his or her credit score can be damaged if you both fail to make payments on the loan.

With that being said, a cosigner almost always has to be someone you have a close relationship with.

Cosigners tend to be people you trust like family or friends; people who will take into account your situation, and be willing to take on a bit of risk so that you can be approved for a loan.

A cosigner with a strong financial background can help you secure a loan at a lower interest rate, qualify for a second personal loan, or become eligible for a higher loan amount. Their good credit score offsets your poor credit history (or lack thereof), and a lender takes into account both when they decide whether you are eligible or not as well as what loan options you qualify for.

Groups That Struggle to Secure Cosigners

Unfortunately, not everyone is able to easily secure a cosigner. Two of the groups who struggle the most include:

  • Immigrants
  • Students

If you fall into either of these categories, don’t feel bad—you’re not alone!

1. Immigrants

Immigrants are new to the United States and usually have not had time to create a network of people with strong credit reports.

They’ve just arrived to the States, have no credit history of their own, are attempting to set up a life, and have yet to create strong, trusting relationships with potential cosigners.

A cosigner has to be someone with a US credit history, while also being someone willing to take a risk on you. If you’ve only been in the US a short while then it’s quite possible you haven’t had a chance to socialize and network with people who may then become willing to cosign for you.

2.  Students

Students tend to be young meaning they have had little time to build a credit history. Most teenagers are deemed too irresponsible or risky to be given loans or credit cards, making it hard to build up a FICO score.

Ironically, students tend to be in most need of a loan. They are training for their careers and are not pulling in much more than a part-time minimum wage. Students need cars, residences, and student aid which require payment plans.

If a student has not had to pay off any credit previously, then it will be hard to convince a lender that you will be able to hand the responsibility of a loan.

Private Student Loans For Bad Credit And No Cosigner

When Looking For Student Loans Without A Cosigner, You Should First Consider Federal Student Loans. These Do Not Require A Cosigner And There Is No Credit Check During The Application Process With Most.

How to Get a Student Loan Without a Co-signer?

While federal student loans should be your starting point for all student loan needs, there are limits on the amount you can borrow. Because of these limits, many students turn to private student loans to help fill the gap.

If you don’t have someone to cosign a student loan, you can compare our partners who offer private student loans without a cosigner.

Compare No Cosigner Student Loans

No cosigner student loans for all grade levels

Ascent Logo

Best for Juniors and Seniors

  • Receive a 1% cash back reward at graduation
  • Pre-qualify and check your rates without impacting your credit
  • Rates (APR) from 4.37% to 14.96%
Funding U Logo - Horizontal

Best for Undergraduates

  • Eligibility is based on academic performance—not your FICO score
  • Prequalify without impacting your credit score
  • Rates (APR) from 7.49% to 12.99% for Bachelor’s degree candidates
Edly Logo

Best for Income-Based Repayment

  • Borrow from $5,000 to $20,000 per school year, and up to $30,000 lifetime
  • Must be a US citizen or permanent resident that is a current college junior, senior, or grad student at a supported school
  • Prequalify in minutes with no impact on your credit score

Best Private Student Loans Without A Cosigner

Private student loans are offered through non-government banks and lenders. Each lender has a unique application process with its own eligibility requirements.

If you don’t have a strong credit score or a creditworthy cosigner, you likely won’t be eligible for most lenders. However, our partners below offer student loans specifically to borrowers without a cosigner.

  • Best for undergraduates: Funding U
  • Best for juniors and seniors: Ascent
  • Best for income-based repayment: Edly

Steps For Taking Out A Student Loan Without A Cosigner

Before you apply for student loans without a cosigner, follow these steps to make sure you take all the necessary action to fund your education.

  1. Maximize your federal student loan options. Federal student loans do not require a cosigner and come with several benefits not available through private lenders. These benefits include low interest rates and access to income-driven repayment plans and forgiveness programs. To apply for federal financial aid, you must first fill out the Free Application for Federal Student Aid (FAFSA).
  2. Make sure you’ve considered all of your cosigner options. Your approval odds for a private student loan will be higher if you can add a cosigner to your loan. Our statistics show that the odds of being approved without a cosigner is nearly five times less than if you have one. With this in mind, it’s important that you consider all your options for adding a cosigner to your loan. If you do find a cosigner to add to your loan, check out the best private student loans where you can likely receive lower rates.
  3. Improve your odds of approval. To improve your chances of being approved for a private student loan, you should stay up to date on bills, lower your credit utilization, and ensure your credit report doesn’t have any errors.
  4. Compare your options. You should never apply for a student loan without comparing your options first. By comparing your options, you can see which company offers you the lowest rate, what repayment options you have, and whether or not there are any fees. For a direct comparison of private options.
  5. Put together a plan for repayment. Once you have settled on a lender and have been approved for a loan, you should put together a budget that accounts for your student loan payments so you can make sure you stay on top of them.

In the end, it all boils down to this: if you are a dependable individual with a stable job, and you have good credit and income history, you will likely be approved for a student loan without a cosigner. The best thing that you can do is shop around for lenders, compare the different loan types and terms, and choose the one that is best for you. Then apply for your loan as early as possible so that any credit issues can be resolved before the start of your next semester. After all of that, remember to pay your loan on time in order to avoid any late fees or penalties. You’re half way there—now just have some faith in yourself and stay focused on what you want. To answer the question “can I take out a student loan without a cosigner?”—yes. Yes, you can!

Add a Comment

Your email address will not be published. Required fields are marked *