Borrowing money has always been a tall order since time immemorial. Many lenders require security before lending their cash. The security is to cushion them against the losses in the event a defaulter is unable to repay the amount borrowed. Giving students loans is risky because most of them are unemployed and preoccupied with their studies. Moreover, most of the students are usually young with little credit history. This is the reason why most of the lenders, require a cosigner before offering the students loans. This write up is going to explore the various ways in which the students can obtain loans without a cosigner.
The government loan program
It is easier as a student to obtain loans from the government other than the private lenders. The government has different types of student loans whereby the students can apply without the requirement of any cosigner. Most of the loan programs that are offered by the government do not require the individual to have a source of income or credit history.
These types of loans are usually referred to as the “sure bet” as far as the student loans are concerned. Students are therefore advised to apply for these types of loans since they are likely to be granted with the loans that they apply provided that they qualify for them. One of the things to note about the government loans is that they come with limits in every academic year. Once the limit is reached, the student can’t be provided with additional funds until the next school year.
Private student loans
Once you have applied for the government loan program, you may go ahead and apply for a loan from the private lenders. You will need to have some form of income and good credit history to be issued with the loan that you applied for. As a student, it is highly recommended that you obtain some form of credit since this is one of the best ways that you can apply for a loan and be issued with one without a cosigner. You should also tread carefully with the private lenders since there are some who are out to scam and exploit the students.
Building your credit
Building your credit score requires time; you may not get the student loan immediately, but you are likely to get one in the future with a good credit score. With a good credit rating, you will not need a cosigner when applying for a student loan. You will need at least two years to build your credit score. You can, therefore, work towards building your credit score before you apply for college. One way of building your credit history is by being a responsible borrower. This is achieved by paying all the pending loans plus the accrued interest on time. Click here for more information on education loans that don’t require a cosigner.