What to Do if You Are Struggling to Find a Loan Without a Cosigner 🎓
You may have heard that having a cosigner is necessary to get a student loan. However, not everyone has access to a cosigner to help with their student loan funding. If you’re in this situation, the good news is there may be options for you. This post will explore the ways that those without a cosigner can still get the student loan funding they need.
Finding a Cosigner Can Be a Challenge
Cosigners need to meet specific credit related eligibility requirements, including sufficient income levels. In addition, to the credit hurdles, some prospective cosigners may be hesitant to risk their credit for your student loan. International students may face the challenge of finding a US citizen who’ll apply when it comes to finding a cosigner.
With that, let’s look at some alternative pathways to consider for you to get the student loan funding you need:
Option #1: Federal Student Loans
In most cases, a cosigner is not required to get a federal student loan. Considering the relatively low rates and deferred payment options that federal student loans can offer, this can prove to be a great option. As we cover in Student Loans 101, the FAFSA should be your starting point when it comes to getting the funding you need. In addition, be sure to explore any available grants or scholarships to limit costs. Your school’s financial aid office can get you pointed in the right direction.
Option #2: Look Elsewhere for a Cosigner
Many students turn to their parents for cosigning help and may be discouraged if it doesn’t work out. Don’t give up yet— there are other people you can reach out to. Friends or other relatives that meet eligibility requirements can be a good option. Anyone who is willing to invest in your educational future and support you for the long run can serve as your cosigner.
A cosigner should be someone who would be proud to cheer you on at graduation. Avoid looking for a cosigner through online databases that connect you with a cosigner for a fee — they can be unreliable and may be illegitimate. When you find someone, who is open to being your cosigner, explain to them that you are committed to success with your education and loan repayment. Depending on the loan program, you may be able mention that the lender will release your cosigner after certain conditions are met.
Option #3: Apply for a non-cosigned Loan
Finally, there are student loan funding options that don’t require a cosigner. The Ascent Non-cosigned loan provides opportunities for college juniors, seniors and graduate students who do not have a cosigner. Just like with a cosigned loan, you can get up to 100% of your tuition and eligible living expenses covered as you complete your educational journey. Eligibility for loans such as these depend on a variety of factors, such as creditworthiness, school, program, and your GPA.
Stay the Course
Just because you may not be able to find a cosigner does not mean you can’t reach your educational goals. By utilizing the above options, you can forge your own path ahead when it comes to your college experience. Take the time to explore your available options and think outside of the box, and you’ll find there are many that are willing to assist you along the path.
Ascent is dedicated to providing resources for aspiring graduates, in and out of the classroom. Not only do we provide student loan funding for those in need, but we’re also committed to offering the latest college finance tips and tricks, so you can financially informed, throughout college and beyond.
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