In order to receive student loans without a cosigner, the applicant has a few different options. For example, the student may choose to fill out a FAFSA (Free Application for Federal Student Aid) with the government at www.fafsa.ed.gov.
Once this application is filled out completely, including information about the student’s parents if under the age of 24, the application will be processed by the student’s university and an award letter will be sent out. On the FAFSA, if the student opted to be considered for federal student loans, the applicant will receive information on their award letter about how much their loan award is, and how to receive those funds. Student loans, such as the Stafford Loan, or Direct Loans are student loans without cosigner, and therefore do not need a cosigner to get approved.
If the student is not eligible for student aid through the Federal government, they may opt to apply for student loans through private lenders. Options include banks such as Bank of America, Chase Manhattan Bank, or Charter One. All of these options offer private student loans, with or without a cosigner. If the applicant chooses to go through a private lender, such
as a bank, they must meet credit requirements and restrictions that are not present for federal student loans. These loans will also accrue interest and require payments that will start immediately.
Student loans offered through the Direct Loan or Stafford Loan system have two options, which are subsidized and unsubsidized. Unsubsidized loans also accrue interest payable by the student immediately, however loans received through Federal Aid can often allow the student to defer repayment until after graduation. Subsidized loans accrue interest that is paid by the federal government until graduation, at which point the student must begin repayment. Getting a loan through a Credit Union at which the applicant is a good standing member can lower interest payments, but will also require a credit check. In the end compare all of your options, both federal and private, if you want to get the most financial aid you can for the upcoming school year.