Best Place to Get Private Student Loans Without a Cosigner

Without a cosigner, the best student loan is either a federally subsidized or unsubsidized loan.

With the former, the government provides the interest during specific periods and is only available to undergraduates, while the latter is for all students.

The annual cap on how much you can borrow with the federal government is usually set at a certain amount.

If you need more money, private loans are also available. Graduate students can borrow through the PLUS program but must have a credit check to take out these types of loans.

This article will cover the best places to get student loans without a cosigner.

Read on as we throw more light on these loans.

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Best Place to Get Private Student Loans Without a Cosigner

The following are places where you can get private student loans without a cosigner;

Federal Direct Subsidized Loans

Federal student loans are the most flexible and cheapest option for Graduate and undergraduate loans. Only those with financial needs can receive subsidized loans.

When students are enrolled in school, the government will pay the interest on their loans until they graduate.

This is only done during their grace period and when they put them into deferment.

Subsidized loans have one of the lowest interest rates on the market. No cosigner is necessary, and all eligible undergraduate borrowers get the same rate regardless of their credit history.

With the help of income-driven repayment plans, federal student loan borrowers can lower their monthly payments and reduce their loan balances.

The lower interest rate and the availability of income-driven repayment options are reasons federal student loans are the most flexible and cheapest option.

Federal Direct Unsubsidized Loans

Unsubsidized loans are available to graduate and undergraduate students regardless of their financial needs.

Unlike subsidized loans, these don’t come with a break in interest. As an undergraduate, it’s essential to consider maxing out subsidized loans before taking out unsubsidized ones.

Unsubsidized loan borrowers who are likely to get a lower interest rate on a private student loan won’t have the same consumer protections.

Federal Direct Unsubsidized loans can be used by those who work in the public service sector to lower their loan payments.

Unlike private graduate loans, unsubsidized loans come with a 1.057% fee.

Although this fee is typically worth it, the low-interest rate and the loan benefits are more important than the amount.

Ascent Undergraduate Future Income-Based Loan

One of the student loans offered by Ascent is the Future Income-Based Loan.

This is a loan for those without a credit history or those who don’t meet the income requirements for the company’s other loan.

Your school, educational program, and GPA determine your interest rate and eligibility.

This product is only available to college juniors or seniors with a GPA of at least 2.9.

Like other Ascent loans, this comes with a 24-month forbearance period and no-origination fee.

It also has a graduated repayment plan that allows payments to start at a low rate and gradually increase.

You’ll need to apply for a loan with a US citizen cosigner if you’re an international student.

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Federal Graduate PLUS Loan

Although the federal Graduate PLUS loan has various benefits, it’s less than the direct unsubsidized loans.

Since the borrowing limits for these loans are higher, they’re an option to cover any gap that emerges after you’ve used all of your unsubsidized loans.

The interest rate on the Graduate PLUS loan is higher than that of the unsubsidized loan.

Also, the fee, which is derived from the loan amount, is much higher.

PLUS loans are the only federal loan type requiring a credit check. You can still get one even if you have a credit history issue.

Funding U

Unlike other student loan providers, Funding U doesn’t require a cosigner.

Instead, it bases its eligibility on various factors such as your school’s academic record, current courses, and your likelihood of earning more in the future.

Although it doesn’t operate in every state, the company’s lowest rates are only for those graduating high in the academic year.

Although Funding U’s loan limits are relatively low, private loans should only be used sparingly to avoid having to cover more significant gaps in the student’s funding.

Prodigy Finance

Many international students don’t qualify for federal student loans due to the requirement for a US citizen cosigner.

A London-based company called Prodigy Finance offers private student loans to those studying in a master’s program.

To be eligible for a loan from Prodigy Finance, you must be a student in one of the company’s 18 countries.

According to the company, the average rate it offers is 7.3%. Its variable interest rates can change with the market’s conditions.

Also, it comes with a 4% administration fee, which is spread over your monthly payments.

Unfortunately, for US-based students, the company only provides loans to those in states such as Connecticut, Arkansas, Mississippi, and Delaware.

It also doesn’t offer loans to Nevada, New York, or North Dakota residents.

SEE ALSO: Loan Portfolio Manager at Winock Limited

Conclusion

Graduate students can get private student loans without a cosigner through the PLUS program but must have a credit check to take out these types of loans.

As a graduate student needing a private loan, you can check out any of the above-outlined organizations.

With the right attitude and perseverance, you’d get a loan in no time. Good Luck.