No-Cosigner Student Loans Helps Make College a Reality for Thousands

For many high school graduates, starting college brings with it many challenges. There are, for example, the stresses involved in moving away from home for the first time, of living on campus, of the pressures of study and of paying living expenses and tuition fees. As regards the latter pair, loans are necessary and, for some, no-cosigner student loans are the only option.The inclusion of a cosigner is hugely beneficial for all loan applicants, especially for students who have no or bad credit ratings. This is because the cosigner effectively guarantees the repayments will be made on time. However, not everyone has contact with someone with excellent credit ratings and a high income, and it can be difficult to get loans approved for students without a cosigner.However, it is not impossible, and while some banks and lending institutions can place highly difficult terms on their loans for students, there are some practically guaranteed cosigner-free loans for students available from other institutions and sources. Often, these loan options are more accessible than those from traditional lenders, and advice is provided by the financial aid services available on campus.Federal and Government LoansThe main advantage of getting loans from a government or federal agency is that they are guaranteed by the government. While, strictly speaking, they are no-cosigner student loans, in effect the government is the cosigner. What this means in real terms is that interest rates are lower and terms are better. And, if the loan is defaulted upon, the tab is picked up by the government, not by a cosigner who might be a member of family.Also, government loans approved for students without a cosigner are usually granted without any attention paid to the credit rating of the applicant. So, a credit check is not necessary, thereby making them available to practically everyone.A third main advantage is that the repayments are delayed until after graduation. This lifts much of the pressure that students usually feel, allowing them to concentrate on their studies. And when payments eventually begin, the interest is low enough to ensure that monthly repayments are not too difficult to manage.Arguably, the Perkins and Stafford loans, as the options are known, are as close to guaranteed cosign-free loans for students as can be had.Online Loan OptionsThe modern option includes online lenders, many of which provide low interest loans, in comparison to banks and credit unions. The use of a cosigner is always a good idea, but without one, the online no-cosigner student loans that are available are amongst the most manageable.However, as with all loans approved without a cosigner, there needs to be criteria met regarding the ability to repay, with a delayed repayment schedule not always on offer. For this reason, the amount available to borrow is very limited, but as guaranteed cosigner-free loans for students go, these are a affordable option.Private Loan OptionsOf course, when all else fails, going to a traditional private lender is a viable option. But it is worth remembering to shop around, as the best no-cosigner student loans can sometimes take a little time to find. In comparison with the government options, the range of loans are not as great, with loan often requiring immediate repayments, and credit checks usually carried out before any loans approved without a cosigner.There are some options that offer delayed repayments, but it is worth noting that when repayments begin, some strict non-payment penalties come into play. Strictly speaking, they are hardly guaranteed cosigner-free loans for students but if the applicant has some income then a larger no-cosigner student loan might be attainable.