My father cosigned a private student loan for me last year, but is unable to cosign another loan for me this year. How can I get the money I need to pay for college tuition?
Most new private student loans require the borrower to have a creditworthy cosigner. This includes more than 90% of new private student loans to undergraduate students and more than 75% of new private student loans to graduate and professional students. But, what if the student doesn’t have a creditworthy cosigner? How can a student get student loans without a cosigner?
Options for students who don’t have a creditworthy cosigner are limited.
Federal student loans, including the Direct Loan, Perkins Loan, and PLUS Loan, do not require the borrower to have a cosigner. (If the borrower of a PLUS Loan has an adverse credit history, the borrower may still qualify if he or she has an endorser who does not have an adverse credit history. The endorser is similar to a cosigner. The other federal student loans do not consider the borrower’s credit history.)
Apply for an Edly IBR, No-Cosigner, Income-Based Repayment Loan
5-12 years
Variable: 0.00% APR - 23.00% APR1
- MUST BE a US citizen or permanent resident
- MUST BE a college junior, college senior, or grad student
- No co-signer required
- Get approved in minutes. Pre-qualify without affecting your credit score
- Income-based repayment with built-in protections, like deferred payments if you lose your job
Edly Student IBR Loans are unsecured personal student loans issued by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 - $15,000 per academic year ($25,000 lifetime) with repayment terms of 60 or 84 months depending upon loan product. Example: $10,000 IBR Loan (60 month repayment term) with a 7% gross income payment percentage for a senior student making $65,000 annually throughout the life of the loan. Payments deferred for the first 12 months during final year of education. After which, $270 Monthly payment for 12 months. Then $379 Monthly payment for 44 months. Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example: The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make in this example is 60 (loan with a 60-month repayment term). You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
Funding U Merit-Based, No-Cosigner Student Loan
10 years
$20 minimum/month OR interest-only payments while in school
Fixed: 7.49% APR - 12.99% APR (not including 0.5% ACH discount)*
- Up to $15,000 per academic year with no cosigner required
- Fixed Rates (APR) from 7.99% to 12.49% (plus an additional 0.5% discount for ACH auto-payments)*
- No origination fee. No late payment fees. No prepayment penalties.
- Quick prequalification and rate check that won’t impact your credit
- Multiple repayment options
- Dedicated loan officer for every borrower
New student loans of $3,001 up to $15,000 per school year will be granted to residents of eligible states enrolled as undergraduates in bachelor’s degree or equivalent- granting programs at eligible schools.
Funding U offers fixed interest rate loans, without a cosigner, to students who are serious about their academic success and post-grad career. Eligibility is determined by several factors, including: school graduation rate, class hours completed, estimated graduation date, academic record, major; employment or internship experience; and, other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals and is on track to be able to repay debt accrued.
Eligibility is also limited by state of permanent residence. Terms and conditions vary by state. Not all loans are available in all states. Loan amounts available may vary by state.
DISBURSEMENT All Loan proceeds will be sent to the student borrower’s school around the time classes begin, on the date your school prefers. Funding U will require documentation to verify your registration and certify your loan need prior to disbursement. Your school must also certify your loan need. Your loan may be adjusted based upon the amount of need certified by your school.
REPAYMENT TERMS New Undergraduate loans for the 2021-2022 school year will have an Annual Percentage Rate (APR) of 7.49% to 12.99%. All loans have a fixed interest rate range of 7.49%* to 12.99% (before consideration of ACH discount). There is no origination fee. Interest accrues while students are in school.
In-school partial payments: Students may choose either $20 monthly as a “Fixed Payment” while enrolled in school or “Interest Only” payments. These payments will be reported to credit agencies like other student loans. All loans have a 10-year repayment term (paid monthly over 120 months starting 6 months after graduation). Both In-School payment options may not be available in all states. Student’s electing to make Interest-Only payments will receive a 0.5% interest rate discount.
PREPAYMENT PENALTIES There is no prepayment penalty on your loan.
Additional details, terms & conditions will be included in each loan offer.
*The lowest rate shown is available only to juniors & seniors with outstanding academic performance and is not typical of the rates offered to most borrowers. Your actual rate will depend on creditworthiness and other factors, such as your school year and GPA.
Some state loans do not require cosigners, but the borrower must have very good credit scores. Small local banks and credit unions do not require a cosigner for personal or signature loans. Secured loans, such as home equity loans and lines of credit, often do not require a cosigner.
Mortgages and other secured loans involve a different set of risks than student loans. If you default on a home equity loan or HELOC, you can lose the home. If you default on a federal or private student loan, the lender cannot repossess your education.
Students who are seeking a private student loan should consider casting a wider net for potential cosigners, not just parents. Aunts, uncles, grandparents, older siblings and other relatives may be eligible to serve as cosigners. However, these relatives may be less forgiving than the student’s parents if the student defaults on the loan and ruins the cosigner’s credit. It can lead to awkward holiday dinners.
Alternately, relatives who are unwilling to cosign a private student loan might be willing to borrow on the student’s behalf on their own. The relative will make the payments on the loan, safeguarding their credit, and the student makes payments to the relative to cover the cost of the loan payments. It is often best to have such a scenario memorialized in a formal written agreement such as a loan promissory note to have the student make the payments on the relative’s loan. Otherwise, disputes can arise as to the nature of the assistance from the relative.