Student Loans Without Cosigner
What are Student Loans without Cosigner
Student loans have become a popular source of funding for higher education. Increasing program costs and inflation have made education unaffordable for many. But now financial assistance through loans is helping many students achieve their academic goals and prepare for a great career.
Student loans fall into two major categories: private loans and federal loans. Private loans mostly require a cosigner. A cosigner on a loan is basically someone who jointly signs a promissory note for a loan given to a student. Cosigners are responsible for payment of the loan incase the student defaults. However, there are loans that do not require a cosigner. Student loans without cosigner are mostly federal based. Student loans without cosigner include the Stafford loan and the Perkins loan.
How to Apply
To apply for Student loans without cosigner, you have to submit a Free Application for Federal Student Aid (FAFSA) form. This is available online at www.FAFSA.ed.gov or at the financial aid office of a university. These types of loans are generally need-based, meaning that the students have to demonstrate a simple financial need through a FAFSA form submission. The FAFSA application is used to collect financial information about students including income support, tax, and employment status. Based upon this information provided, a student’s eligibility is determined for Student loans without cosigner. There are also a number of private loan companies that provide Student loans without cosigner.
The Pros and Cons
There are numerous advantages that come with loans having no cosigner. The greatest advantage of all is that they are easy to apply for and students can pursue their educational aspirations with ease. Another major benefit of these types of loans is that students can boost their credit score and increase their opportunities for loans in the future. Student loans without cosigner usually have a low interest rate and also have very flexible repayment options for students. However it is important to know that Student loans without cosigner come with certain drawbacks. These loans may not cover complete tuition costs and have to be renewed each year. If you are willing to overlook this flaw you will find much freedom in these types of loans.