As you have probably found out by now, taking out student loans without a cosigner is not an easy task. It can be done. Given that most students are young and do not have a credit history, some lenders will be understanding and may be willing to work out an agreement. Of course, it is easiest to get a loan if you have someone willing to cosign for you, but it is still possible to get a loan without having a cosigner.
Students With Good Credit History
The easiest and most common way to get a loan without having someone to cosign with is if you have a good credit history. Having a good credit history is representative of responsible behavior and spending habits and makes you appear as less of a risk to lenders. However, since most students have not built up a credit history until junior or senior year at the earliest, this option is typically not available to younger students.
Before applying for a student loan, you may want to look at your credit score. Because there is no universal way of compiling credit scores, your rating may vary depending on who you ask. There are, however, certain factors that will be factored in as a way of ensuring some sort of uniformity in rating credit scores. When asking about your credit rating, you need to know your rights. Remember, you have the right to know:
- If the information contained in your credit report has been used against you.
- What information is contained in your credit report.
- To dispute any information contained in your credit report that you feel is inaccurate or incomplete.
As of 2003, it is illegal for these credit bureaus to withhold information relating to your credit score. You have a right to receive a free copy of your credit report.
Exhaust All Federal Options First
Younger students without a solid credit history should first look into taking out federal loans before considering private loans. Taking out federal loans is the easiest way to get student loans without a cosigner. Federal loans are given out on a basis of financial need, rather than credit score. On top of that, federal loans are cheaper and easier to pay back than private loans. The downside, however, is that there is a limit to how much you can take out. This means that a federal loan may not cover all your financial needs. To get more information about these loans, you can visit your college financial aid office. It is always advisable to engage in federal loan programs before shifting to private student loans without a cosigner.
What Works Best For You
When applying for student loans, it is best to exhaust all your federal options first. Federal loans are cheaper and easier to pay back. They are also the easiest way to get student loans www.online-marketing-systems.com without a cosigner. Private loans are generally reserved for older students or graduate students who have had more experience and built up a credit history. It is possible, though, to find lenders who are willing to work with you. But you need to be aware that since you have no credit history you will be seen as a risk and may have to agree to stricter terms such as higher interest rates and a shorter deferment period. Also, remember not to take out more than you really need as this will cost you more in the long run.