Getting a student loan without a cosigner is really very easy. Sometimes it seems it’s a little too easy. Student loan debt can be a real burden once you have left school. Statistics show that the average student at a four-year institution leaves school owing about 10,000 at the low end of the scale, and up to 100-200 thousand for some programs at certain institutions of higher learning. Government backing has made the student loan available for little more than a signature and a copy of the Student Aid Report. The higher the need the easier it will be to get the loan.
It is always best to apply for all the available grants, scholarships and other forms of “free or gift monies” that are available before going the loan route with or without a cosigner. The interest rates on loans that are not secured with backing from the government can be hefty. These unsecured types of loans also begin gathering interest before the ink dries on the paper work. Federally subsidized loans give you a break on the interest rates as long as you are considered a student. After graduating you generally have between thirty and ninety days to begin loan payments.
Plan Now For the Future
When considering the merits of getting a student loan without a cosigner you have to consider how you are going to pay it all back. Consider that the average cost of tuition increases at twice the rate of overall inflation. What this means is that what you needed in your freshman year will not be able to cover your sophomore expenses. Subsequently you will need to increase the asking amount of future loans accordingly. Your major is another consideration as it reflects on the current and future of your employability.
This past year over 70% of graduating law students found that the field was saturated to the point that they were unemployable. How then do you get the funds to begin to pay back those high interest rate loans? This is a dilemma that has presented itself to graduating classes all over the country in various fields of study. Employed or not the student loans that you receive will begin to gather interest and payments will be due.
One of the most common loans is the Subsidized Stafford loan this one also can be applied for as an unsubsidized loan. The biggest differences in each case is that one is need based and has a low fixed interest rate, while the unsubsidized version has a higher interest rate and the interest starts to accrue right away. They both can be obtained without a co-signer and credit check. Student loans without a cosigner should really be considered only as a backup plan. It really is best to apply for as many grants and scholarships as possible, after exhausting all of these avenues if you still are short of the amount needed then apply for a no cosigner student loan for the balance. This will ensure that you only need to borrow a small amount. To qualify for a loan you have to be registered as a student with at leas a part time credit load in an approved United States College or University.
A graduate and undergraduate student can obtain a Perkins loan. Applicants for this type of loan must be able to show a financial need in order to be considered and the checks are sent to the school for disbursement.
Go Government First
Most advisers will tell you that it is imperative that you apply for all the government has to offer first. The FAFSA application is free and easy to obtain. To apply for yours today visit http://www.fafsa.ed.gov/, It will give you online step by step instructions on how to apply and list all the credentials you will need for the application process. Some of the things you will need to know is your Dependency Status, the deadline for applying and they will supply a worksheet. The worksheet allows you to gather all the required information on a sample application before you actually enter it into the application you plan to submit. You can set up a PIN number for access to your loan as you may need to stop in the middle to await copies of certain elements such as w-2 forms and income tax returns. School codes are very important in the application process. All the schools you are interested in attending should be listed by their code on the application. This will speed up the process because once your Student aid Report has been generated and you approve it the government will send electronic copies to the schools you have listed. The following site can assist you in the search for school codes the process is simple all you need to do is click on the link provided http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet, you then will enter the information as you are prompted.
The Federal government works with various banks and credit unions all over the country to provide this educational funding to as many qualified low income individuals as possible. President Obama has made education funding a top priority during his administration. He added thousand of dollars for these loans and grants. Getting a grant is the most popular form of funding since it does not require repayment.
Deadlines for Applications
Federal Student Financial Aid applicants need to pay strict attention to the deadline when filing their applications. Paper applications and online applications have different deadlines. The deadline for filing the online application for the FAFSA for the upcoming 2011-2012 year will be June 30th 2011 Central Daylight Time. Corrections to the form can be made until September 15,2011. Schools often have a different view of when a deadline is as it pertains to whether it should be the process date and time or the actually date the application is received. It is important that you ask all of the schools you are applying to and file by the earliest due date. The Federal agency considers your application date of receipt as the time all corrections are submitted successfully. It is important to note that when you apply for the FAFSA or any loan online you should also print out a copy of the application for your records. As a back up have a copy emailed to you at the time of submission this gives you a validated timeframe for your application. All deadlines must be met by midnight on the date specified or you will not be considered.
We’ve compiled a list of some of the financial aid deadlines here if you are interested.
State Student Financial Aid Deadlines
This information can greatly speed up the application process and give you a head start. The sooner you get answers about the free monies you have applied for the sooner you can get started on your application for the no-cosigner student loan.
Conclusion
Obtaining a student loan may be simple even without a cosigner. It is worth noting that the more you borrow the more you will ultimately have to pay back. Most loans are made so that you have to start to pay on them almost immediately after graduation. You may be able to get a six-month deferment in some cases. Your priority at the moment may seem like just getting into school but an eye toward the possible complications a student loan could present in the future is advisable. Have you considered the very real possibility of extended unemployment Offer College is done and what that will mean to your ability to repay this loan? With the new laws you cannot wipe out this debt even through bankruptcy. If a student loan goes into default you will find that the government has authorized the IRS to collect this debt from your tax return. Depending on the amount of the debt you could not see a return for years to come. A Student loan in default also has a bearing on your credit history as well. It is for this reason that all advisers strongly urge that you apply for as many grants and scholarships as you can qualify for. Planning for your education should not stop at the door to the building of higher learning it should also include the first ten years after graduating. Ten Years is not a lot of time to find a position become successful and repays an ever-increasing loan.
Resource List
Here are several websites that discuss this topic in detail:
- http://studentloanswithoutcosigner.org
- http://go.salliemae.com/chlgfixed/index.aspx?dtd_cell=IQMS09IQID8702454
- http://www.fafsa.ed.gov
- http://federalstudentaid.ed.gov
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