joliejoe
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It is the problem of most of the college going or appearing students. Since they have not their credit score as they have not done any kind of activities, their own credit can’t work. Cosigner is the option that can work in this situation but it is not possible for all the students. There are some loan programs that offer student loans without cosigner. Some of them are Subsidized Stafford loans, unsubsidized Stafford loans, Perkins loans, PLUS Graduate loans and private loans are options for students to consider when they do not have a co-signer.
Perkins Loans
It is issued by the college or university where you study and is subsidized by the federal government. Every school get a certain amount of government funding for the Perkins loans and the school decide how to use these funds for the students. The annual limit for undergraduate student is $5500 and graduates get $8000. Due to the government subsidization the government pays the interest while you are in school and 9 months after graduation. Long repayable time of 10 years is also an attractive point for students.
Subsidized Stafford Loans
It is given by the federal government and for this you have to fill FAFSA (Free Application for Federal Student Aid). If you are deemed with the requirements then you get awarded with the subsidized Stafford loans. Long 10 years of repayment with extension up to 30 years makes it ideal. In the first year the student can take $3,500, in second year $4,500 and $5,500 per year for third year and beyond.
Unsubsidized Stafford Loans
If you don’t get the subsidized student loans then you can go for the unsubsidized loans. FAFSA is also applicable for this too. These student loans without cosigner carry interest rates when you are in school and you can make interest only payments while in school or allow the interest to accrue. If you are dependent on your guardian’s taxes then you get $5,500 for first, $6,500 for second and $7,500 for third and beyond. For the independent student the loan for first year can be $9,500, second year 10,500 and $12,500 for later years.
Grad PLUS Loans
These are only for graduates who are attending the school for at least half time. The loan amount is limited to the cost of attendance minus other financial aid. It carry a credit check and the borrower must need to pass it. In year 2009 the interest rate is 8.5% repayment starts after leaving the school. The repayment time is from 10 to 25 years.
Private Loans
Other than federal options there are Private student loans without cosigner that can cover all the costs of your education and there are number of companies that are offering these kinds of loans. Some popular lender for this is the Sallie Mae, Educap and Citi. Different lender charge different rates but the rates are higher. The repayment time also less as compared to federal loans. Students with bad credit or no credit generally are not eligible for these kinds of loans.
 155 days ago
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