Sourcing College Money With No Cosigner
With education costs continuing to rise from one year to the next it is becoming harder to find the money necessary for college and many students spend more time worrying about raising the money needed than they do working at their studies. If this was not bad enough all too many students discover that once they have left college they are left with so much debt that it simply drags them down and will probably take many years to pay off. Now, if this seems to be a grim picture then for all too many students the problem of funding a college education is magnified by the requirement to raise the money needed without having a cosigner to their loan applications.
These days college funding is not simply a matter of looking to a single source of finance for the majority of students but is a matter of putting together a portfolio of funds from a variety of different sources.
The first action for every student must be to look for grants and scholarships. A lot of students simply overlook this source of effectively free money altogether and yet you would be surprised at just how many grants and scholarships are available these days. In many instances of course the sums of money in question are relatively small but even so can be extremely helpful as one part of your overall funding plan.
The next source of funding should be federal loan funding through schemes such as Stafford and Perkins loans which are offered as both subsidized and unsubsidized loans. Perkins loans particularly useful because of their low interest rate but are also the most difficult loans to get and need a student to demonstrate financial hardship.
Unfortunately at this point despite the fact that you will have started to create your portfolio it is unlikely that it will provide you with sufficient money and you will need to begin casting your net wider and will have two roads to follow.
If you are fortunate enough to have the help and support of a parent or guardian then they may apply for a federal student PLUS loan to cover the shortfall between the funding you have been able to source yourself and the overall cost of attending college. Student PLUS loans are conditional upon your parent or guardian having a reasonable credit rating but the requirements are generally less strict than those applied by a private lender.
If you do not have a parent or guardian you can turn to or decide to go it alone then you will need to find a private loan and precisely how easy this will be will depend to a large degree on your own credit history. In the majority of cases private lenders will be happy to offer you a loan if you have a good credit rating and will ask for a cosigner if you do not have a credit history on which they can base their lending decision or have a bad credit rating. However, with a growing number of people with a poor credit rating today there is also an increasing number of private lenders who are prepared to offer loans without the need for a cosigner so it is merely a question of shopping around.
A bad credit loan with no requirement for a cosigner will naturally cost you more than a standard good credit loan although as long as you take your time and shop around with care you will get a loan at a fair rather than exorbitant interest rate.
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