This is perhaps the number one question I hear from students, and while the answer is of course “yes”, the truth is that most students won’t be able to get a private student loan without a cosigner because they haven’t had the time to build up their credit history.
Private student loan lenders require a cosigner because their loan product is based on credit and is unsecured, and they need to see that at least the student borrower, or their cosigner can demonstrate the appropriate credentials in terms of credit before they can issue an approval.
The Reality of Getting Private Student Loans Without A Cosigner
Theoretically it may be possible to get private student loans without a cosigner, but the reality is that this seldom occurs in the real world because most student borrowers have little, to no credit history.
No lender in their right mind will ever approve a student who has no credit history, or bad credit, and this is why a cosigner is needed most of the time for an approval to be handed down. Having a creditworthy cosigner will almost guarantee an approval at most private lenders, and can expedite the process of applying for a private student loan by leaps and bounds.
Having a cosigner can also allow you to become eligible for the lowest available interest rates, as most private student loan lenders will adjust your rate in accordance with the strength of your application, and in particular your credit situation.
The bottom-line is that it is foolhardy to apply for a private student loan without a cosigner if your credit isn’t where it should be, and by getting a cosigner you can vastly improve your chances at getting approved for most private student loans.
You should also be aware of the fact that most private lenders will also want to see that you have a substantial income, and not some part-time wage that is customary for most college students.
Federal Education Loans
Not having good credit and a solid income will ultimately force you into getting a cosigner if you want to get approved for a private student loan, and I highly suggest you either take the time to improve your application, or get a cosigner if you don’t want to go through the harrowing process of being denied.
The only authentic type of student loan that doesn’t require a cosigner under any circumstances are federal student loans, as they are based on financial need and not your personal credit profile.
These are the education loans that you should take advantage of first before you look into applying for private student loans, and by submitting a FAFSA by the appropriate deadlines you can make yourself eligible for these types of loans with relative ease.
Federal loans can provide you with a substantial amount of funding for your college education, and hopefully by completing the FAFSA you can get enough federal aid to make your quest for private funding obsolete.
