Student Loans You Can Get Without Cosigner

You have just graduated, and now you want to start paying off your student loans. Unfortunately, you do not yet have a job lined up, and you are in need of some cash to get started. Your parents could lend you money, but they are already struggling financially, and you know that asking them for additional funds will likely result in an argument between the two of you.

Fortunately, you may qualify for federal student loan forgiveness if you work hard at repaying your debt, and you have access to helpful assistance programs. Here are three great options that can help you pay down your student loans without using cosigners.

The first option is called Public Service Loan Forgiveness (PSLF). Under this program, eligible borrowers will have their remaining balances forgiven after 10 years of qualifying payments. To make sure that you qualify, you must either work full-time in public service, or serve a public service organization while enrolled at least half-time. If you meet those qualifications, you will receive a monthly income-based repayment plan for these loans once you begin working.

Another good option is known as Income Based Repayment (IBR). Borrowers who qualify for IBR must enter into a standard ten-year payment plan, though unlike PSLF, they will not be able to obtain loan forgiveness after completing that period. As long as borrowers remain employed in a qualifying occupation, they will continue making scheduled payments.

The third option is Pay As You Earn (PAYE), which requires borrowers to make a fixed monthly payment based upon their financial circumstances. There are no caps on how much you can borrow under PAYE, and the length of time you can use the program is unlimited. However, borrowers should contact their lenders immediately to find out whether they qualify due to certain conditions.

If you are still unsure about your eligibility for any of these programs, you can apply directly to the Department of Education. You can also speak to a private student loan counseling agency that specializes in helping people with student loans navigate the repayment process.

Student Loans You Can Get Without Cosigner

Federal Direct Subsidized Loan

The federal direct subsidized loan (Direct Subsidized L) is a federally guaranteed student loan program. Eligible borrowers may borrow without regard to their credit history and parents cannot claim any interest on these loans. Borrowers do have to pay back the government after graduation, regardless of how much money they make.

Federal Direct Unsubsidized Loan

The unsubsidized form of the federal direct loan is popularly referred to as the PLUS loan. Eligible students who earn at least half-time enrollment while attending school and meet certain financial requirements qualify for a PLUS loan. If a borrower wants to receive the full amount of his/her loan, he/she should not co-sign for the loan. However, if he/she does want to help cover the cost, then he/she may sign as cosignor on the loan. The amount of the loan is determined based on the borrower’s expected family contribution.

Perkins Loan

This type of loan is administered by the U.S. Department of Education Office of Student Aid. Unlike Direct Subsidized Loans, Perkins Loans require repayment beginning right after graduation. Perkins Loans are considered private loans since they don’t come directly from the federal government. Unlike Direct Subsidised Loans however, Perkins Loans require a cosigner to guarantee the loan.

Parental Loan Forgiveness Program

If a parent uses a Perkins Loan to finance higher education costs, then he/she could potentially qualify for this loan forgiveness program. Qualifying parents must demonstrate sustained payments of $50 per month for 10 years; show no delinquency on the loan; and complete 20 hours of service work annually outside of college.

Private Loan Programs

Private lenders offer many types of loans to students including consolidation loans, consolidation refinancing, private educational loans, and private educational loans. These programs vary in terms of eligibility and price.

6.. Grants

Grants provided by the federal government assist students in financing their education. Grants aren’t loans and therefore don’t need to be paid back. Students who qualify for grants often get assistance covering tuition, room and board, books, supplies, transportation, and even some fees. Each year, about 100 million dollars worth of grant money is awarded to students through the Pell Grant and the Supplemental Educational Opportunity Grant (SEOG).

Scholarships

Scholarships offered by organizations (such as local foundations), companies, sports teams, or schools are generally awarded based on grades or test scores. Most scholarships are merit-based awards and tend to be small amounts compared to student loans. Scholarship applications are typically sent out in February or March of each year.

Student Loans You Can Get Without Cosigner

Private Student Loan

A private student loan does not require a cosigner or co-borrower. There are several reasons why a borrower may choose this type of loan over other options. First, the interest rates are lower than those of federal loans. Second, many private lenders make their money off of servicing the loan rather than charging upfront fees. Third, the repayment terms tend to be longer than those of federal student loans. In fact, some private lenders offer 10 years of no payments. Finally, the private lender’s decision whether or not to extend the loan term after graduation is dependent upon the amount of credit score improvement the borrower makes. If the borrower fails to improve his/her credit rating while enrolled at school, the lender might decide to end the loan agreement. However, if the borrower excels academically and makes significant improvements to his/her credit score while attending college, then he/she could potentially receive a longer loan term.

Federal Stafford Loan

The federal government offers two types of student loans: direct and guaranteed. A federal direct loan requires neither a cosigner nor a co-borrower, whereas a federally guaranteed loan requires both a cosigner and co-borrower. Direct loans do have the advantage of lower interest rates, but they are only offered by certain schools. In order to qualify for these loans, students must meet income guidelines set by the government. These rules vary depending on what program the student applies for, but generally involve calculating how much money the student’s family earns per year. Students who graduate without having earned enough money to cover their monthly expenses often find themselves unable to pay back their debt. In addition, unlike private loans, federal programs charge higher interest rates than private ones. On average, the interest rate for a federal plan is 5 percent higher than a comparable private loan (though there are exceptions). And even though private loans don’t require co-signers, there still isn’t any guarantee that a student won’t lose his/her job and default on the loan before he/she graduates.

Perkins Loan

Perkins loans are a type of guaranteed student loan that are funded by the US Department of Education. Borrowers must meet strict criteria in order to qualify for this loan. Applicants must demonstrate financial need, cannot already be receiving federal aid, and must maintain good academic standing. Borrowers must also agree to work in the field of study for which the loan was granted. As with all student loans, repayments begin after the borrower graduates and enters the workforce. The interest rate on Perkins loans varies based on factors including the borrower’s grade point average, household size, and length of time since the application was submitted. In general, borrowers with higher grades, married couples, and families with children tend to receive the lowest rates on these loans. A family with four members earning $50,000 a year would pay about $3,400 a year in interest on a five-year loan; however, this same family would pay $5,800 a year if they had borrowed the same amount over 30 years.

PLUS Loan

PLUS loans are similar to Perkins loans in that applicants must meet specific requirements. The biggest difference between the two is that PLUS loans are backed by the Department of Health and Human Services and are therefore guaranteed by the US Government. Like Perkins loans, PLUS loans are awarded to students demonstrating financial need and maintaining good academic standing. Unlike Perkins loans, PLUS loans carry a variable interest rate. This rate fluctuates annually based on changes in the Consumer Price Index and is capped at 8.25% for 2018-2019. Borrowing period is based on years of enrollment, with undergraduate students eligible for three-years and graduate students eligible for six-years. Borrowers must submit their annual earnings and tax returns to prove that they earn the necessary income. While they are technically allowed to defer payment until after graduation, it’s almost impossible to do so unless the borrower is working full-time. The maximum loan amount is $31,000, although this limit is rarely approached due to rising cost of education and increasing value of the dollar.

Parental Plus Loan

Parental Plus loans are another option for parents looking to help their child finance an educational expense. Parents borrow a fixed amount of money to fund their child’s education each semester. Repayment begins when the student enters repayment status. Interest accrues at a variable rate. The loan amount limits depend on the number of children in the household, but will range from around $7,500-$30,000. Depending on the state, borrowers may be required to attend class during the first few weeks of every semester, but will not be expected to start any coursework until the third week of classes. This system allows parents to monitor their children’s progress and ensure that they are meeting the minimum requirements for graduation. Borrowers must prove their income to their parent lenders each month by providing tax documents and proof of employment. Payment amounts may differ slightly from lender to lender, and are subject to change annually with the Consumer Price Index.

Student Loans You Can Get Without Cosigner

Federal Direct Loan (FDL)

This loan is offered directly by the federal government and requires no cosigning. There is no income limit, and the student pays interest only while in school. FDL loans are available for both undergraduate and graduate students. The maximum amount that may be borrowed is $31,500 per year. If you borrow less than $31,500 a year, then you do not have to pay any fees. However, if you want to borrow more than $31,500, then there are some fees associated with this loan, including a fee of 1% of the total cost of attendance and a monthly service charge of 2%.

Perkins Loan Program

This program is for those who need financial assistance to attend college. Students should apply before beginning their first term at school. Your school’s financial aid office should provide information about this program. The maximum loan amount that you can receive for tuition and fees is $7,000. Additionally, there is a co-signing requirement with this loan.

PLUS Loan

If you don’t qualify for the above programs, then this option is for you! Undergraduate students can get a maximum of $12,500 in subsidized loans while graduate students can get as much as $20,500. Both amounts can be paid back over four years. This type of loan is considered private, meaning that it doesn’t require a cosigner. An additional benefit of this loan is that it can be repaid after you leave school, unlike the FDL. Fees are based on the borrower’s annual earnings, the cost of attending school, and the length of time the loan remains active.

Student Veterans Educational Assistance Program (SVIP)

The SVIP is designed to help veterans and active duty military members gain access to higher education. It provides funding for undergraduate and graduate degrees at accredited colleges and universities. If you are a veteran or member of the armed forces, you can get qualified for this loan. To qualify, you must have been honorably discharged or released under conditions other than dishonorable. In addition, you must be enrolled or accepted into an eligible educational institution, meet residency requirements, and demonstrate evidence of military service.

Stafford Loan

Stafford loans are for undergraduate and graduate students. Subsidized and unsubsidized loans are available, depending on whether or not you have demonstrated financial need. There’s a minimum annual repayment of $0, and the maximum loan amount varies widely according to the size of the expected family contribution, as well as how long you take to repay the loan. In addition to fixed rates, there are variable rates, which change annually. However, if you have a good credit history, fixed rates may be an attractive option.

Private Education Loans

Private loans are made by lenders outside of the federal government. These types of loans are often harder to obtain than public ones. Interest rates tend to be high and the application process is strict. However, these loans are the best way to ensure that you have enough money to live without having to resort to other options such as selling precious belongings or even skipping meals.

Grad Plus Loans

Grad Plus loans are similar to federal Pell Grants. They are awarded to students who are unable to cover the costs of enrollment due to financial circumstances. Students who receive Grad Plus loans must be enrolled full-time at an eligible school. A maximum of $7,500 is authorized, with a maximum of $500 for books, supplies, fees, room and board, and living expenses. While the funds are granted as a grant, they are still taxable.

Student Loans You Can Get Without Cosigner

Federal Stafford Loans

Federal Stafford loans allow you to borrow money at interest rates lower than any other type of student loan. These loans have low monthly payments of about $0-$50 each month depending upon your income level. Your payment amount generally does not change based on how much extra debt you incur after borrowing.

Subsidized Direct Plus Loan

The direct plus loan program was created to help students who cannot afford private student loans and would otherwise receive little financial aid. You may be eligible if you meet certain requirements, including being enrolled full-time and receiving less than $20,000 in financial aid. A subsidized direct loan carries a fixed interest rate between 4% and 6%, while unsubsidized loans carry variable interest rates ranging anywhere from 2% to 8%.

Perkins Loan

Perkins loans were designed to help those individuals who could not afford private student loans. Students who qualify for these loans include those who do not receive enough federal financial aid to pay for college expenses and those who want to attend school in a location that does not offer adequate financial assistance. Perkins loans provide a fixed interest rate of 5%, making them ideal for students seeking to finance their studies.

PLUS Loan

PLUS loans are a popular option because they offer borrowers flexibility and the opportunity to choose from a wide range of repayment options. Borrowers can use this loan to cover tuition, fees, books, and housing costs. The interest rate for a PLUS loan varies between 6% and 10%. If you already have an existing private loan, you may still take out a PLUS loan to help cover additional expenses. However, you should only apply for a PLUS loan if you have exhausted all other loan options. Otherwise, you run the risk of incurring excessive amounts of debt.

Parental PLUS Loan

If you have parents who also work outside the home, then a parental PLUS loan may be a good choice for financing education expenses. Because parental PLUS loans are considered second mortgages, they carry higher interest rates than traditional student loans. Interest rates vary widely, though, from a low of 3.76% to a high of 9.17%. Also, borrowers may need to repay the entire balance of the loan before graduation if they default on the loan, unlike in the case of other types of loans.

Graduate Student Loan

Graduate student loans are similar to PLUS loans because both are aimed at helping students finance graduate education. Unlike regular PLUS loans, however, graduate student loans are available only to borrowers pursuing advanced degrees. Another difference is that graduate student loans generally require borrowers to make a down payment.

Private Loan

Private student loans are also known as alternative loans or consolidation loans. Like government student loans, they offer borrowers the opportunity to borrow money without having to worry about paying back their debts. To obtain a private loan, you may need to complete a credit application online. Depending on your circumstances, private lenders might even consider your credit score. Many lenders also impose restrictions on borrowers’ ability to access private loans if they owe creditors money.

►HEY, we’ve got more valuable information here: ►CLICK HERE LOANS FOR STUDENTS◄

►Cloud of related items ▼

►Loans For Students◄

 

bloque1x