College Loans with No Cosigner
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Do you need to apply for a student loan to pursue your college degree?
One of the main problems for students seeking financial aid for college on their own, is locating college loans with no cosigner. Having little or no previous credit building opportunities is the status quo for most prospective college students, and this leaves many students at a loss for exhibiting reputable creditworthiness. The average person seeking a car or mortgage loan, for example, could turn to a cosigner to augment their financial stability when borrowing money, however, many college students are not afforded this option for a variety of reasons.
Do you need college loans with no cosigner?
Apply for college loans with no cosigner today!
The Department of Education offers a plethora of options for college loans with no cosigner via the two federal financial aid lending entities: The Federal Direct Student Loan Program and The Federal Family Education Loan Program.
Student college loans with no cosigner from the federal government include:
• Federal Perkins Loan Program from the FDSLP
• Direct Stafford Loans from the FDSLP
• Stafford Loans from the FFELP
• Direct Graduate PLUS Loans from the FDSLP
• Graduate PLUS Loans from the FFELP
The typical college student’s networking web includes mostly immediate family members, relatives, and friends. Cosigning a loan for someone else is a notoriously financially risky decision, and understandably, many parents and relatives of students ascertain the fiscal liabilities involved with cosigning college loans are too great given their personal sentiments and financial status at the current time. With professional student loan assistance, finding student loans with no cosigner is available to all interested students.
Federal Direct Student Loan Program loans, or FDSLP loans, all necessitate no cosigner for borrowing the loan amount. Federal Family Education Loan Program loans, or FFELP loans, may or not require cosigners for the loan transaction to occur. This is due to the fact FFELP loans are essentially subcontracted by the U.S. Department of Education to affiliated lending entities, which may or may not approve a student loan on the sole merit of that student’s creditworthiness and FAFSA information. Interest rates on Perkins Loans are a fixed rate of 5% with an expected repayment period of ten years for those dispersed in 2008. The Graduate PLUS Loan, from the FDSLP and the FFEL, carry interest rates of 7.9% and 8.5% respectively. Rates for both FFELP and FDSLP Stafford Loans in 2008 are 6.8% to be repaid with the principle amount over the course of ten to twenty-five years depending on preferred repayment timeframe. With the ratification of the College Cost Reduction and Access Act, the interest rate on Stafford Loans will drop to 6% for those loans dispersed after July 1, 2008 and will continue to drop regularly until July 1, 2012 with a fixed interest rate of 3.4%.
Although the low, fixed interest rates of government loans appeal to students and parents, several pertinent points prohibit the vast majority of college students covering their college costs exclusively through government loans. First, the department of education disperses loans on a need-basis, and secondly, all federal government loans instill a maximum borrowing amount on each loan. With 20% of student borrowing over $17.3 billion dollars in private lending loans according to the National Center for Education Statistics in 2006, clearly federal funding cannot meet all educational expense needs for students. Not only do private college loans with no cosigner deplete the need of a family member taking a fiscal risk, cover the cost gap of tuition and expense, but also in addition, private banking institution loans do not require filing a FAFSA form for basing loan terms or amounts on financial need.
Do you need college loans with no cosigner?
Apply for college loans with no cosigner today!