Student Loans F&Q
Student Loans without A Cosigner: FAQ
For an impending foray into the hallowed halls of academia on the college level it will take a substantial amount of financing. In other words if you want to go to college you will need lots of dough. The Average 4-year degree at a private non-profit University is 27,293.00 a year. You can cut that cost by attending a public 4-year institution to about 7,605.00 a year for state residents and around 11,990.00 a year for a non-resident. The highest colleges are your Ivy League Universities like Harvard, Yale and Tulane with an average tuition of more than 40,000.00 a year. The top five include Vassar and Bucknell, and you can just about forget George Washington University it has the highest tuition in the country right now. Bear in mind this does not include the costs of living such as food, clothes, shelter and transportation. Forget about going to a movie while attending any of these unless you are independently wealthy.
Sources for financing your education range from free Government grants to Student loans the choices are as different as night and day. Government Grants are the types of monies that do not have to be repaid. Federal Student loans give you a break by no accruing interest while you are actually attending classes. Then there is the Private financial institutions that offer Student loans without a Co-signer. Depending on your previous credit history these can be either hard to obtain or very easy. Either way you will get stuck with a loan that starts to accrue interest before the ink dries on the approval letter.
These are called non-need-based loans. You should consider looking at a website that will help you compare different student loan options. This will go a long way into helping you determine how much debt you want to ultimately end up with.
Frequently asked Questions?
1. Can I get a loan without a cosigner?
As it stands getting a loan without a cosigner is relatively easy. The first option is to pursue federal student loan funding. By applying for a federal student loan, you won’t need any sort of credit check or cosigner to qualify for the loan.You can apply for federal loans by filling out the FAFSA application.
Another option, if you have exhausted federal loan funding, is to look at alternative student loans (also called private student loans). To find out about these, you should visit and talk with loan officers at the banking location of your choice. Keep in mind these are mostly cosigner student loans, though some of the companies may have special clauses that make the loan more attractive for potential cosigners such as the ability to be removed as a cosigner once the student graduates.
As most young people heading off to college have little or no credit the loans are easily given out with enormous interest rates attached. Though getting the loan on your own is a dream of a lot of young people it is best for your future to use a co-signer if at all possible as this will guarantee lower interest rates.
2. Can I get a loan with bad or no credit?
Surprisingly the answer is not a clearly defined, no. There are some lending institutions that will make you a loan even with a shaky credit history. The interest on this loan will be high and the loans will have all types of penalty clauses and other stipulations. There are other types of student loans available without a co-signer that are governmentsubsidized these are the best bets as most don’t start adding interest until after you graduate.
There is, however, a definitive student loan that you can get with bad credit: the federal student loan (also called the Stafford student loan). This is a federally backed student loan that requires not credit check nor any sort of cosigner. Check out the official website here: www.staffordloan.com
There are also a whole wack of private student loans you can apply for online that may be given to you with bad credit.
3. Are there any alternative ways to pay for college besides student loans?
Yes. You should consider looking scholarships and grants as a means to supplement you loan funding. Start by applying for federal student aid with the FAFSA application. This will give you access, should you qualify, to a variety of federal grants that are need based. You will also want to look at institutional grants offered by your college, as many colleges and universities to make available need-based grants for students as well. You can also get a list of grants and scholarships to apply for directly from your college financial aid office.
Another source for aid can be found through online scholarship programs. Some of these function as “giveaway” grants. You fill out the free form and get entered into a monthly draw (often for $10,000 dollars). Here is a short list:
- $10,ooo Scholarship for Dads
- $10,000 Scholarship for Working Adults
- Scholarship Zone ($10,000 Monthly Scholarship Giveaway)
You might also want to consider looking to some part time job options. We address some campus-based work programs later on in the article. You can also consider looking a work at home job like writing articles. You can look at either RealWritingJobs.com or oDesk
to find work writing articles or performing tasks for people/individuals online. These websites will line you up with a job.
4. What is a Work-Study Program?
Work-study programs are federally funded and provide funds to students for labor at various positions at the school that they are attending. There are approximately 3400 schools nationwide that participate in the FWS. Check with the enrollment or financial aid department to see if your school of choice is a participant. Using a standardized formula developed by congress the department determines a students eligibility. They rely on information from the FAFSA to determine the expected family contribution. The items taken into consideration are the students income (including all assets, if the student is no longer at home), the income of the parents and their assets, the family size and the number of members of the family attending a post-secondary school. The assessment rates and allowances differ for dependent and nondependent applicants. To find out what your EFC is you can look on the SAR or student aid report, which you get after filing the FAHSA.
5. What is FAFSA?
The acronym is for The Free Application for Federal Student Aid and it is a form that can be a gateway to many other grants and loans for the purposes of higher education. Over nine federal student aid programs and the other 605 state and most of the rest of the institutional aid programs are dependent on your acceptance for the FASHA. The application process is rather lengthy, over 130 questions alone. There will be questions about your personal income and assets and if you are dependent on your parents their income and assets are taken into consideration. This information is then entered into a formula to determine the amount of the expected family contribution. Whether this information has a bearing on the truth if you live in their household the government expects them to contribute something. After the processing of all the information you will be sent a Student Aid Report or SAR this should be carefully reviewed for errors if you do not contest an error the ISIR, which is the electronic version of the SAR, is sent to all the colleges you are applying to.
See more info at the official FAFSA website: http://www.fafsa.ed.gov
6. Can I use student loans to pay for off-campus housing?
In a word yes, you can use student loan funds for off campus living expenses. You may also take out a loan in some areas specifically for that purpose. However a word of caution about using loans to finance your living situation one you will need to cover all of the months of the lease this can be quite expensive and two the interest rates for these loans are much higher. If at all possible this should be a last resort.
7. What kinds of loans do not need a cosigner?
The Stafford Loan and most other federally backed loans do not require a credit check or a cosigner. These loans are to be paid back after graduation. Most allow you six months to a year to begin the payment process. The interest starts to accrue upon graduation so the sooner you start the better.
8. What is the Stafford Loan?
In 1988 the federal government renamed the Federal Guaranteed Student Loan in Honor of US Senator Robert Stafford. The loan is available for grad students and under-grad students attending American Colleges and Universities. It has a fixed rate of interest and the terms of the loans can be found in Title IV of the Higher Education Act of 1965 (it has since added several amendments), which guarantees repayment to the lender if a student defaults. These are easier to obtain because of the guarantee.
9. Can you apply for student loans even if you are already a student?
You may apply for a student loan at anytime but be aware that you will have to follow the normal processes and the loan may not be approved for the current school term. This is especially true, as most loan applications have cut off dates.
10. When should I start to apply for Financial Aid if I am in High School?
If you are graduating in June you should have prepared your financial aid packet for the coming school year in January. The senior year has long been seen as a time to goof off and get ready for that first summer that you will not have to consider returning to your home of the last four years. That is the way it is if you are not planning to go on to college if you are then that final year is one of preparation. From September to July of your final year you have items that are “musts” that need to be taken care of.
September – You should be researching the school choices for your major, sign up for the SAT or retake it if your scores were less than stellar. Ask teachers for recommendation letters and start to consider your college essay. This is only a small list of what could be accomplished here is a website for more information.
October – Start work on the applications for colleges of your choice and have your test scores sent to them. Create a schedule to help you keep track of all of the different deadlines associated with the college applications.
- November – Finalize your essay- mail all applications and request financial aid packets
- December – start your search for sources of financial aid in earnest. For example start applying for scholarships and grants.
- January – This is when you should receive the FASHSA loan and Stafford loan applications.
- February – the application for financial aid should be finalized in this month or you risk not getting it in time.
The list continues for a complete list of things that should be accomplished during your final months of high school visit http://www.quintcareers.com/college_application_timeline.html and check out all of the resources they have to help prepare you for the next big step.
11. Are there income limits on student loans?
Subsidized loans that are based on need and therefore subject to limitations of income size. Unsubsidized loans are not granted based on hardship so your income is not a factor.
12. Are there certain occupations that can preclude you from paying back a student loan?
Having a minimum wage job and tons of outstanding debt could provide you a way out. There are steps you will have totake to prove hardship and it is not easy. You cannot take a lesser paying job just to qualify they investigate these things thoroughly. You will need to have several years of tax returns and copies of all debts. If you have been in an accident and are unable to work because of it you can apply for a hardship alteration and maybe keep your loan out of default. These days even bankruptcy cannot save you from having to pay back your student loan.
This is not meant to be all-inclusive but a general nudge in the right direction for all of you interested in going to college. Whether you are a single mom. High school graduate or just wanting to expand your life going back to school is a great solution. Getting the financial aid you seek can be stressful at best but armed with what you know now you are ready to enter the fray.
Student Loan Help Resources:
