Qualifying for student loans on your own is already hard because chances are you have too limited of a financial history. Now, imagine that you don’t have a cosigner to help with that. It’s even harder. Let’s go through how to find the best student loan for people without a cosigner:
What Is A Cosigner?
Before getting into it, let’s define what a cosigner is and who that can be. A cosigner is someone who agrees to be legally and financially responsible for the loan, just like you. In the event that you can’t make your monthly payment, your cosigner will have to handle it. That’s why it’s important for your cosigner to be someone you can trust and who has good finances. This means having a good credit score and a steady income. They don’t even have to be a parent or family member. Your cosigner can be a friend or someone else you trust.
But if you’re reading this, chances are you weren’t able to find someone who is both willing and able to be a cosigner for you. In that case, you want to look for non-cosigned student loans.
>> MORE: What is a private student loan cosigner?
Can You Get A Student Loan Without A Cosigner?
Yes! You can get both federal student loans and private student loans without a cosigner. Let’s do a quick overview of how you can do so with each.
Federal Student Loans
Most federal loans don’t require a cosigner, so they’re a great option if you don’t have one. Most students need a cosigner because they usually don’t meet the minimum credit score. However, federal student loans don’t look at your credit score. So, there’s not much need for a cosigner in most cases. Normally, as long as you’re enrolled in college and have filled out the FAFSA, you’ll be eligible. An exception to this is the Direct PLUS Loan. To receive a Direct PLUS Loan, they’ll run a credit check for adverse credit history. If you do have an adverse credit history, you’ll need a cosigner to qualify.
There are loans for undergraduate students, graduate students, professional students, and parents of students. They all have their own predetermined, fixed interest rates and loan limits. Federal student loans are especially helpful because they come with benefits. Some of the most notable benefits are flexible repayment plans and loan forgiveness programs. Each loan also comes with a grace period of about six months before you start repayment. Repayment usually starts after graduation.
>> MORE: FAFSA requirements: Everything you need to know
Private Student Loans
You can get a private student loan without a cosigner, but it can be a bit harder. There are two ways of doing this. The first is qualifying for a loan by yourself. Because lenders are funding part of your education, they need to be sure that you are a good investment. They do this by setting certain criteria borrowers have to meet. As long as you meet all the eligibility requirements, you won’t need a cosigner. To do this, make sure you have a good credit score. It needs to be at least in the high 600s. Also, verify that you have enough income to support your current lifestyle plus the monthly payment. There are other requirements that will vary from lender to lender. You’ll need to inform yourself of this. But, having good credit and a steady income is a good place to start.
>> MORE: What credit score is needed for a student loan?
If you are in a position where you think you can qualify on your own, then great! The problem is that’s not everyone. The good news is there are financial institutions that offer non-cosigned student loans. These will also have certain requirements set forth by lenders. They may be easier to meet, so you’ll have a better chance of qualifying. Yet, these loans do tend to have higher interest rates than other private student loans.
With all private student loans, the terms are going to be different depending on the lender. Typically, though, they’ll have higher interest rates than federal student loans. Private student loans may have less flexible repayment options or borrower protections. Before agreeing to accept a loan, make sure you know the:
- Interest rate and whether it’s fixed or variable
- Repayment terms and options
- Length of the loan
- Grace period (if any)
- Borrower protections (if any)
- Benefits (if any)
- Fees and penalties
What To Do If You Don’t Have A Cosigner
Assuming you’ve already accepted free aid (scholarships and grants), then you’ll first want to complete the FAFSA. If you haven’t, then this is your sign to go apply for some free aid right now. Completing the FAFSA allows you to apply for federal student loans. After you’ve taken a look at and accepted any federal student loans you may have been offered, you can shop around for private lenders. If you don’t qualify on your own, you’ll want to look for lenders that offer loans without needing a cosigner. Interest rates will probably be higher, but it’s a good option if you still need more money with no cosigner to help.
With all loans, it’s important to look over the terms and conditions carefully. Only use loans to cover the remaining cost of attendance you have after accepting other forms of aid.
Where to Find the Best Student Loans with No Cosigner
To help get you started, here are our best picks for student loans with no cosigner. You can use Sparrow to find the best student loan rates for no cosigner and compare across multiple lenders in minutes.
>> MORE: Compare student loan rates
The latest rates from Sparrow’s partners
See a rate you like? Click Apply and we’ll take you to the right place to get started with the lender of your choosing.
Find my rate
Arkansas Student Loan Authority
The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA does not require a cosigner, however, you will need a credit score of at least 670 to qualify. ASLA is a great option for Arkansas students.
Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Collectively, the three options provide a great selection for those who do not have a cosigner available, are international or DACA students, or have lower credit scores.
Brazos is a non-profit lender offering educational funding through private student loans available only to Texas Residents. They offer a wide range of loan options, covering undergraduate, graduate, MBA, law, medical, dental, veterinary, and doctoral degree programs. While you can qualify for a loan with Brazos without a cosigner, their eligibility criteria is fairly strict. To qualify, you must have a credit score of 720 or higher and an income of $60,000+. Brazos is a great option if you live in Texas, have a strong credit history, and want competitive interest rates.
College Ave Student Loans offers educational funding for undergraduate, graduate, professional, and career school students, and parents of students. To qualify for a student loan with College Ave without a cosigner, you will need a credit score in the mid-600s. College Ave is a great option if you are seeking a more flexible repayment term that allows you to find a loan that matches your budget.
Earnest’s student loans provide funding to undergraduate, graduate, and professional students. If applying without a cosigner, you’ll need to meet Earnest’s minimum credit score requirement of 650. You will also have fewer options when it comes to repayment, leaving you with either a 5 or 7-year repayment period. Earnest is a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.
Edly Income-Based Repayment (IBR) Student Loans, originated by Edly’s partner FinWise Bank, provide an alternative loan option for students. Students who are approved for an Edly student loan will not have to make payments while in school. Instead, borrowers make payments after graduation based on their income. Due to the structure of IBR loans, borrowers have a variety of benefits when it comes to repayment. An Edly IBR loan is best if you are seeking a loan option with no cosigner, competitive repayment terms, and flexible repayment options.
Funding U
Funding U is an online lender that focuses exclusively on undergraduate students with no cosigner. Rather than looking at your credit score or income, Funding U looks at non-traditional metrics such as your school, major, GPA, and estimated future earnings to assess your creditworthiness. Funding U’s student loan is best if you are a high-achieving undergraduate student with limited credit history and no access to a creditworthy cosigner.
LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. LendKey has a proprietary scoring model that assesses your creditworthiness by looking at standard metrics such as your credit score in combination with non-traditional metrics such as your GPA and major. This offers a bit of flexibility for those applying without a cosigner. LendKey is best for students who want a variety of options, competitive interest rates, and generous forbearance policies.
MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner.
Nelnet Bank offers private student loans for undergraduate, graduate, MBA, law, and health professional students. While you can qualify for a loan with Nelnet Bank without a cosigner, their eligibility criteria is fairly strict. To qualify, you will need a credit score of at least 680 or higher and an income of $36,000. It’s best if you are seeking competitive rates, a variety of repayment terms, and a flexible forbearance policy.
Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a good option for international students who don’t have a credit history and can’t access a qualified cosigner.
Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. To qualify for a student loan with Sallie Mae, you must have a credit score in the mid-600s. They’re a good option for students seeking competitive interest rates and flexible repayment options.
SoFi began offering private student loans in 2019 and has quickly become a strong option for undergraduates, graduates, law and MBA students, and parents looking to fund the cost of their child’s education. They do not disclose their minimum credit requirements for student loans, so while you may be able to get a loan without a cosigner through them, you may need a higher credit score to do so. Nonetheless, if you do qualify, SoFi will offer you competitive interest rates, a diverse set of repayment options, and exclusive member benefits.
Final Thoughts from the Nest
Shopping for student loans can be a pain, especially if you don’t have a cosigner. The good news is that it doesn’t have to be! After accepting other forms of aid, fill out the FAFSA and consider federal loans first. If you still need money after that, use Sparrow to help you look for private student loans. This will make your student loan experience a lot easier. Happy loan shopping!