While it is feasible to secure federal student aid independently, the truth remains that most new private student loans necessitate a creditworthy cosigner. This prerequisite applies to more than 90% of new private student loans for undergraduate students and surpasses 75% for graduate and professional students. Nonetheless, there are alternative loan avenues accessible that do not mandate the involvement of a cosigner.
Key Takeaways About Cosigners
- Federal student loans are the best options for borrowers without a cosigner.
- Private student loans without a cosigner are available but typically only for creditworthy borrowers.
- To be creditworthy is to have good to excellent credit score with a strong credit history.
- Income Share Agreements (ISAs) are also available to students without a cosigner and require a contract agreeing to pay a percentage of future income in exchange for the money to pay for school. However, there may be limitations based on your year in school, college of attendance, and declared major.
The Best Student Loans Without a Cosigner
Federal student loans are the best options for students without a cosigner. Direct student loans, including subsidized and unsubsidized loans, do not require a cosigner. PLUS loans only require an endorser (similar to a cosigner) if the borrower has adverse credit history as defined by the federal government.
It's worth noting that the credit check for a PLUS loan is not as strict as that for a private student loan. Even if you didn't pass a private student loan credit check, you may still be eligible for a PLUS loan.
To apply for federal loans, including Parent PLUS Loans, you must file the FAFSA®.
Direct Subsidized Loans
A direct subsidized loanis a loan offered by the federal government with a fixed interest rate and flexible repayment terms. With a subsidized loan, the government pays the interest while you are in school at least half-time, during your grace period, and during authorized periods of deferment. Demonstrated financial need is required for this loan.
Direct Unsubsidized Loans
A direct unsubsidized loanis offered by the federal government with a fixed interest rate and flexible repayment terms. With an unsubsidized loan, you are responsible for the interest that accrues while you are in college, during your grace period, and during authorized periods of deferment. This is not a need-based loan.
PLUS Loans
A PLUS loanis a loan offered by the federal government for parentsand graduate students. PLUS loans come with a fixed interest rate. The borrower is responsible for interest of a PLUS loan, and there is no grace period.
What Student Loans Can You Get Without a Cosigner?
If you have an excellent credit score and work history, you may qualify for a student loan on your own without a cosigner. If you fall into this category, we recommend comparing student loan lendersto find the best rates and benefits for you.
If you do not fall into this category it may be difficult for you to find a student loan that you qualify for without a creditworthy cosigner, but you can still explore federal student loans and income share agreements.
No-Cosigner Student Loans
- Ascent
- Edly
Variable rates as low as: 6.01% APR1
Fixed rates as low as: 3.69% APR1
Apply Now
Ascent Non-Cosigned and Cosigned Student Loans
- AFFORDABLE fixed rates starting at 3.69% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for eligible undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursem*nt fees. No late fees and no prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
Variable: 0.00% APR - 23.00% APR1
Apply Now
Edly IBR
- MUST BE a US citizen or permanent resident
- MUST attend an Edly-supported school
- Cosigner and Non-Cosigner student loan products available
- Income-based repayment with built-in protections, like hardship forbearance if you lose your job
- Pre-qualify without affecting your credit score
Who Can Cosign a Student Loan?
A student loan cosigner is usually a parent, but can also be another relative or trusted adult. A good cosigner will meet the following criteria:
- Have a good credit history
- Have stable employment
- Be a U.S. citizen or permanent resident
- Have no recent bankruptcies, liens or foreclosures
Once you have located a suitable cosigner, you can apply for a student loan.
What is the Minimum Credit Score for a Private Student Loan?
The minimum credit scorerequired for a private student loan depends on the lender. Each lender sets their own requirements, but generally speaking you will need a FICO® score of 660 or better on a scale from 300 to 850. The average FICO score in America in 2022 was 716.
An alternative to student loans and something to consider for students without a cosigner, is an income share agreement(ISA). These agreements are growing in popularity as a means for students to pay their tuition. Here’s how it works:
When you enter into an income share agreement you agree to borrow the money you need for school in exchange for a percentage of your future salary. To repay an income share agreement, you commit to pay the decided upon percentage of your salary for a set period of time. ISAs do not charge interest, and the typical repayment period is ten years or fewer.
A note of caution: taking out multiple ISAs could require you to pay a significant percentage of your income during repayment. Plan ahead for what you will be able to afford once you are out of school.
Apply for Scholarships and Grants
If you find yourself without a cosigner for a student loan, then gift aid, such as scholarships and grants may be an option. Scholarships and grants do not require a cosigner and eligibility does not depend on your income, credit score or credit history. Contact your school’s financial aid office to ask about scholarships and grants you may qualify for. Many institutions have their own in-house scholarship, grant, and aid programs for students in need, but you won’t know unless you ask. Your financial aid office may also be able to help you find additional scholarships and grants outside of the school that you qualify for, such as state aid.
You can also seek out additional scholarship opportunities on our siteor apply for easy, no essay scholarshipson our site.
Attend a Cheaper School
This is the answer most students don’t want to hear, especially if they have the opportunity to attend their dream school. But the hard truth may be that you can’t afford to attend the school of your choice. Look at community colleges and state schools for more affordable options. They offer a competitive education at a fraction of the price of most private colleges and universities.
Ask About Tuition Payment Plans
You don’t always have to pay all of your tuition up-front. Many colleges offer tuition payment plans to make it more affordable. If you or your family can work to make payments on a schedule as set forth by your school, you may be able to eliminate the need for loans.
FAQ’s
Can I get a student loan without a cosigner?
Federal Loans are the best options for students who do not have a cosigner as they do not require a credit history. Federal Loans also have flexible repayment options. If you have an excellent credit history and work history, it is possible to qualify for private loans without a cosigner. Private Lenders offer different rates and benefits, so we recommend that you compare to find the best fit for you.
How can I get my first loan without a cosigner?
In order to get Federal Loans, you simply need to apply for the FAFSA.
To qualify for private loans, private lenders will review your credit report and work history. Many undergraduate students don't have an established credit history, meet the minimum credit score, payment history or steady income which makes it difficult to qualify for student loans without a cosigner. However, federal loans, income share agreements, scholarships and grants are still options to pay for school.
Sallie Mae does not require a cosigner if you meet certain criteria to qualify on your own:
- Student loan borrowers must be 18 years old at the time of application and a U.S. citizen or permanent resident of the country
- Student loan borrowers must be enrolled at least part time in a college or university
- Student loan borrowers must have good credit history and a reliable source of income
What Private Loan Lenders do not require a cosigner?
There are some private student loan lenders that offer loans to students that do not require a cosigner, even if you don’t have a strong credit score. There are two types of borrowing options: Non-cosigned private student loans and Income Share Agreements
Non-cosigned loans may be offered to a student with a strong GPA, certain majors, as well as future income.
Non-cosigned Student Loan Options
Income Share Agreements are a way to fund your education, and when it come to repayment, your payments will be based on a fixed percentage of your income for your repayment term.
Want to Know More?
Undergraduate Student Loans
Introduction to Federal Student Loans
How to Find a Good Cosigner
Private Student Loans and Credit
Student Loans for Borrowers with Bad Credit
5 Things to Consider Before Seeking a Cosigner
Income Share Agreements
Emergency Student Loans
