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Student Loans Without Cosigner

Article on Student Loans Without Cosigner

Going to college can be expensive, but it can also be the way for a brighter future. The number of people who have decided to go to college is increasing and this may be because many have come to realize the value of having a degree. However, it cannot be denied that majority of households can hardly afford to pay for college tuition and for this reason, student loans are considered the light at the end of the tunnel. There are two types of student loans: one requires a cosigner while the other does not. This article will talk about the various options for student loans without cosigner.

FAFSA

While it can be a challenge to apply for a loan when there is no credit history, it is still possible to get one. This is especially true for students and the first step to take when it comes to student loans without cosigner would be to fill out the Free Application for Federal Student Aid or FAFSA. Ideally, every student in need of financial assistance should fill out the FAFSA every school year. Doing so will determine a student’s eligibility for the 9 federal student aid programs and state financial aids. The sooner he or she applies for FAFSA, the better since many financial grants are provided on a first come, first served basis.

Stafford Loan

The Stafford Loan is one of the lowest student aid programs available for undergraduate and graduate students. With this federal loan, a student can borrow up to $20,000 each school year, with a fixed interest rate that can go as low as 4.5%. A Stafford Loan has two types: subsidized and unsubsidized. The subsidized program is for the most financially needy students, and the government pays for the interest repayment until such time the student already has the means to assume payment. The unsubsidized type is open to all students with financial difficulties but students have to pay for all interest accruals.

Perkins Loan

Another federal loan for financially needy students, the Perkins Loan offers a 5% interest rate for a 10-year term loan. A Perkins Loan approves student loans without cosigner and even those with no credit history. Another benefit of applying for a Perkins Loan is that it gives students a grace period of 9 months from their graduation date, giving them more time to find a job before they are required to start paying off their loans. Moreover, unlike most loan options, this loan can be awarded directly from the college or university that the student is attending.

Low-income families should never think that a college degree is not viable for their sons and daughters just because they do not have the means to make it happen. With the availability of student financial aids, student loans without cosigner can be had. In fact, there are private lenders and institutions offering the same types of loans, as well. Since numerous undergraduate and graduate students are applying for student loans without cosigner, stay ahead of everyone else by starting early and making sure to comply with all the requirements.