bhutan travel: Discover How to Get Student Loans without a Cosigner

Wednesday, July 27, 2011

Discover How to Get Student Loans without a Cosigner - Free ...

Finance Guides announces a new series of informative articles to explain consumers' options when seeking student loans without a cosigner.

There are many reasons for trying to get student loans without a cosigner. You might not have anyone with a credit score good enough to cosign the loan, or maybe you want to keep the responsibility of the loan on yourself. For what ever reason, options are available. Read on to find them out.

Getting student loans without a cosigner has never been easier. However, experts will always recommend that you seek aid from the government first. Why? Because they give loans to help out students, not go make a profit. First is because federal student loans have very low fixed interest rates. Second is that federal student loans tend to have more flexible payment schemes.

How to Get Student Loans without a Cosigner from the Government

Ask anyone who has ever taken out a student loan. Chances are they?ve taken out federal Stafford and Perkins loans. These are the most popular student loans, and for good reason. The interest rates are favorable to student borrowers. Not only are they smaller, but they?re also fixed. Fixed interest rates, as the name suggests, have interest rates that do not vary over time. This will give you the opportunity to effectively plan your payment schedule. They also have more manageable payment terms. You only start payment on Perkins loans and subsidized Stafford loans after you graduate or leave school. Both loans have at least a 10-year repayment period. Federal loans are the safest way to get student loans without a cosigner.

Let's Discuss Stafford Loans

The Stafford loan is by far the most popular option to get student loans without a cosigner. It has a low fixed interest rate of only 4.5%. There are two kinds of Stafford loans - subsidized and unsubsidized. Subsidized Stafford loans are only offered to students with financial need. If you do, interest on your loan will not accrue until you graduate or leave school. This is unlike unsubsidized loans which immediately accrue interest upon the first loan payout.

Interested in getting a Stafford loan? The first thing you should do is complete a Free Application for Federal Student Aid (FAFSA). The form is available for completion online. Your borrowing limit will be determined by your school with the use of the information on your FAFSA. Upon the first payout, you are required to file a Master Promissory Note (MPN). The MPN is a legally binding document that contains the terms and conditions of the loan. It also states your intention to pay back the loan.

What about Perkins loans?

Another relatively easy way to get student loans without a cosigner is through Perkins loans. They have a fixed interest rate of 5%. As with subsidized Stafford loans, interest will not accrue until you start paying for the loan and you are given ten years to repay the loan in full. To apply for a Perkins loan, just complete a FAFSA on the internet. An MPN will also be required upon the first payout.

Knowing Ways to Get Student Loans without a Cosigner from Private Lenders

Federal student loans should be enough in most cases, but what if you need more money than you can get with Stafford and Perkins loans? You go to private lenders. However, this is the riskiest way to get student loans without a cosigner. You have to understand that the goal of these companies is to profit, and that means making money out of you! Private lenders will generally offer higher interest rates compared to the government loans. You will also usually only be offered loans with variable interest rates. Your interest rate may go up or down, disabling you from planning out an effective payment scheme. Given all that, possibly the most disadvantageous feature of private loans are the penalties. Private lenders have notoriously high late payment fees. It's very easy to owe more money from accumulated late penalties.

About the Author

Roland Creienne is a personal injury attorney for student loan companies and an ardent writer.

Roland Creienne is a lawyer for student loan companies, and has been a technology and finance buff for many years. He has composed articles in numerous technology, gadget, and investment blogs and forums to share his passion for those topics. He resides in Portland, Idaho, together with his wife, 5 children, a few pet dogs, and a gibbon.

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