Getting an education these days is not easy, it costs about as much as buying a Bentley. If you’re not Beyonce-rich (a category all in it’s own), then you will probably need student loans. You might even need more loans than the federal student loans the government will give to you. That just about guarantees you’ll have to turn to private student loans.
While the government is comfortable giving money to teenagers without a co-signer, banks are businesses, and they will not guarantee you a loan. Most college students don’t have a credit history so they have no clue how responsible you are. About 9 of 10 students who use private student loans will do so with the help of a cosigner.
Compare Student Loans That Don’t Require a Cosigner
- See which lenders you are eligible for
- Compare options to find your best fit
- Choose from fixed and variable rates
- Borrow up to 100% of school cost
- Easy application process
- Different repayment terms available
While you might have the budget skills of a financial genius and the earnestness of Jimmy Fallon, there’s no way for a bank to know that. To limit their risk, banks require a co-signer. Even if they don’t require a co-signer, they will often give you a lower interest rate if you have one.
A cosigner is any creditworthy adult who is willing to accept responsibility for the loan should the primary borrower (the student) fail to pay. Most often, parents act as the cosigner. However, cosigning comes with many risks for parents. Studies has shown that cosigning can negatively impact a parents credit and make it harder to save for retirement. So… before you use a cosigned loan, you should look for alternatives!
You, my friend, should be looking for student loans without cosigners. While some might say they’re as real as unicorns, I’m happy to tell you that they do actually exist. They are just rare and not easy to come by.