Should You Get a Student Loan Without a Co-Signer?
The cost of college tuition has risen exponentially over the past few decades, with the result that the majority of students are now unable to pay for their education on their own. For many students, getting a loan is the only way they can afford to go to college. There are now a huge number of government and private loans available to students in need, but it is essential to carefully consider the various factors involved to ensure you choose the best loan for your needs. In this sense, one of the most important things you’ll need to decide is whether it’s better to attempt to get a loan on your own or have a parent or other person co-sign on your loan.
The decision of whether or not to use a co-signer is one that affects most people applying for a student loan, and this decision can have a huge impact on the type of loan and terms you qualify for. Getting a loan without a co-signer offers a number of useful benefits, but it also comes with numerous drawbacks. For this reason, we’ll now look into the pros and cons of getting a student loan with and without a co-signer.
Advantages of Getting a Student Loan with No Cosigners
Whenever a person co-signs for someone else’s loan, they assume partial responsibility for repaying the loan should the borrower be unable to meet their loan repayment obligations. Co-signing for a loan is a major responsibility and not something that should be taken lightly. Of course, the fact is that the majority of co-signers on student loans are parents, and most parents are willing to undertake this additional responsibility if it means that their child can attend college. That being said, there are still a number of advantages to getting a loan without a co-signer.
If you’re considering applying for a federal student loan, you’ll be happy to know that these loans don’t require a co-signer. This can be very advantageous for both the student and the parents, as the student doesn’t have to rely on anyone else and is instead solely responsible for paying their own education. There are a number of different types of federal student loans that don’t require a co-signer, and these are almost always the preferred option for those who qualify.
Issues with Applying for a Student Loan without a Cosigner
The problem is that not all students will qualify for a federal student loan, which means that they’re left looking for private loan options. Unfortunately, the vast majority of private student loans will require a co-signer. This means that if you don’t have someone who will co-sign for your loan, you will be left having to rely on the federal student loan options, and if you don’t qualify for a federal student loan, you may find it impossible to get a loan without a co-signer.
Lenders generally require that a person has a fairly high credit score in order to be approved for a loan, and the vast majority of students don’t yet have a sufficient credit record or high enough credit score to qualify for private student loans on their own. This means that your options for paying for your education will be severely limited if you don’t qualify for a federal loan and can’t find someone to co-sign.
Although there is always a risk for the co-signer, the truth is that having a co-signer is sometimes the only way that people can receive the necessary funding to pay for college. Federal student loans are almost always the best option for those who qualify. Still, co-signing for a private student loan can also be an excellent option if it allows your child to attend school.
