Guaranteed Student Loans Without Cosigner
Q: As a college student with some bad credit history, who is unable to secure a private student loan, and unable to find a cosigner for a student loan, are there any guaranteed student loans without cosigner to apply for?
A: “Guaranteed student loans without cosigner” do not exist in the private student loan sector. Private student loans are based upon the credit history and credit standing of the borrower, the borrowers cosigner, and/or a combination of both. It is standard practice for private student loan lenders to use a borrowers credit as a way to determine risk, and therefore there is not a lender who would be willing to offer “guaranteed student loans without cosigner” to every individual that applied. This is not to say that it is impossible to find a private student loan lender willing to lend to a borrower with bad credit, however this scenario would be rare (without the help of a creditworthy cosigner), and the loan would likely come with extremely high interest rates.
The only guaranteed student loans without cosigners are federal student loans. Most federal student loans are not based on credit, but rather on an individual financial need. With federal student loans there is no guarantee that the borrower will get the full amount of money they need to cover the costs of college, however it is likely that the borrower will qualify for some federal student loans, and will not need the help of a cosigner to do so regardless of their credit history. Federal student loans are free to apply for and can be applied for by completing a FAFSA.
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