Best Student Loans Without a Co-signer
Federal Direct Subsidized Loans
Why We Picked It
Among undergraduate and graduate student loan options, federal direct subsidized loans are the cheapest and most flexible. Only undergraduate borrowers with financial need—as determined by the information in the Free Application for Federal Student Aid, or FAFSA—can get subsidized loans. The government will pay the interest when students are in school, during their grace period and when they put their loans into deferment.
The interest rate on subsidized loans is one of the lowest you’ll find, and no co-signer is required. All eligible undergraduate borrowers qualify and they receive the same rate regardless of credit history. Most importantly, borrowers of federal subsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.
While there is an origination fee of 1.057%, it’s lower than what many private lenders offering loans without a co-signer charge.
Pros & Cons
- Low fixed interest rate
- Multiple repayment and forgiveness options available
- Interest subsidy during certain periods
- Charges an origination fee
- Low annual loan limits
Details
Loan terms: 5, 7, 10, 15 and 20 years
Loan amounts available: $5,000 minimum; no maximum, except for associate’s degree graduates, who can refinance up to $50,000.
Eligibility: Must be enrolled at least half-time in a school that participates in the federal direct loan program. Must be an undergraduate and be determined to have financial need.
Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.
Federal Direct Unsubsidized Loan
Why We Picked It
Federal direct unsubsidized loans offer low fixed interest rates, and this type of loan isn’t credit-based and doesn’t require a co-signer. All eligible undergraduate borrowers qualify, and they receive the same rate regardless of credit history.
While there’s a chance the most creditworthy borrowers could get a lower interest rate with a private student loan, they’ll miss out on a range of consumer protections that might be useful in the future. Borrowers of federal direct unsubsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.
Direct unsubsidized loans come with an origination fee of 1.057%, while most private loans do not. But in many cases, the low interest rate and loan benefits make the fee worth it.
Pros & Cons
- Low fixed interest rate
- Multiple repayment and forgiveness options available
- No co-signer required in order to get lowest rate
- Charges an origination fee
Details
Loan terms: Terms of 10 to 25 years are available, depending on the repayment plan.
Loan amounts: Loan amounts up to $12,500 per year and $57,500 in aggregate in aggregate are available.
Eligibility: You must be enrolled at least half-time in a school that participates in the federal direct loan program.
Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.
Co-signer release policy: N/A
Ascent Undergraduate Future Income-Based Loan
Why We Picked It
The Future Income-Based Loan is one of two student loans Ascent offers to undergraduates that don’t require a co-signer. It’s aimed at borrowers without any credit history or who don’t meet the income requirements for Ascent’s other loan that doesn’t require a co-signer, the Non-Co-Signed Credit-Based Loan. Your eligibility and interest rate are based on your school, educational program, time to graduation, GPA and other factors.
It’s only available to college juniors and seniors, though, and you must have a GPA of 2.9 or higher. Like other Ascent loans, it comes with no origination fee, a generous 24 months of forbearance and a graduated repayment option that allows payments to start out low then gradually increase, keeping the original loan term the same length. If you’re an international student, you must apply for an Ascent loan with a U.S. citizen co-signer, meaning you don’t qualify for a non-co-signed loan.
Pros & Cons
- Up to 24 months of forbearance available
- 1% interest rate discount for automatic payments
- No origination fee
- Low annual loan limit
- Not available to international students
Details
Loan terms: 5, 7, 10, 12, 15 or 20 years
Loan amounts available: $2,001** to $20,000 per year, up to $200,000 in aggregate for all Ascent loans.
Eligibility: Must be a college junior or senior with a GPA of 2.9 or higher enrolled at least half-time. No minimum credit or income requirement.
*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates are effective as of 3/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
Federal Graduate PLUS Loan
Fixed APR
8.05%
(graduate school only)
8.05%
(graduate school only)
Why We Picked It
The federal graduate PLUS loan also offers wide-ranging benefits to borrowers, but fewer than direct unsubsidized loans offer. Since borrowing limits are higher for PLUS loans than direct unsubsidized loans, they’re an option to cover any funding gaps after you’ve maxed out direct unsubsidized loans for graduate study.
The graduate PLUS interest rate is slightly higher than the unsubsidized loan rate; the origination fee—4.228%, which comes out of the loan amount that’s disbursed to you—is much higher. PLUS loans are also the only federal loan type that require a credit check, but it’s possible to get a PLUS loan even if you’re determined to have an adverse credit history (more on that below).
Pros & Cons
- Low fixed interest rate
- Multiple repayment and forgiveness options available
- High maximum loan amount
- Charges an origination fee
Details
Loan terms: 10 to 25 years, depending on the repayment plan
Loan amounts available: Up to total cost of attendance, minus other financial aid received
Eligibility: Must be enrolled at least half-time in an eligible school. Must not have an adverse credit history.
Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.
Co-signer release policy: None
Ascent Undergraduate Non-Co-Signed Credit-Based Loan
Why We Picked It
This option is for students with at least two years of credit history and who earn at least $24,000 per year. If you can qualify, Ascent says that rates on this loan may be lower than on a Future Income-Based Loan. It also has a higher annual loan limit and is available to borrowers regardless of year in school. But it comes with a smaller interest rate discount for making automatic payments (0.25%) compared to the Future Income-Based Loan (1%).
Like other Ascent loans, it comes with no origination fee, a generous 24 months of forbearance and a graduated repayment option that allows payments to start out low then gradually increase, keeping the original loan term the same length. If you’re an international student, you must apply for an Ascent loan with a U.S. citizen co-signer, meaning you don’t qualify for a non-co-signed loan.
Pros & Cons
- Up to 24 months of forbearance available
- Graduated repayment option
- No origination fee
- Not available to international students
Details
Loan terms: 5, 7, 10, 12, 15 or 20 years
Loan amounts available: $2,001** to $200,000 per year; $200,000 in aggregate for all Ascent loans.
Eligibility: Must have at least two years of credit history, earn at least $24,000 per year, and meet minimum credit and debt-to-income ratio requirements.
Forbearance options: Up to 24 months of temporary hardship forbearance available, in one- to three-month increments
*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Rates are effective as of 3/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
A.M. Money
Why We Picked It
Similar to Funding U, borrowers qualify for A.M. Money loans based on their educational background and GPA, not their credit. The company does not allow co-signers. A.M. Money also stands out for the fact that it offers an income-based repayment plan for up to 36 months for borrowers who need it. The minimum monthly payment on the plan is $50.
A.M. Money charges a 4.5% origination fee, and unpaid loans go into default sooner than most other lenders: 14 days, unless otherwise specified by state law.
Pros & Cons
- No late fees
- Income-based repayment available
- 4.5% origination fee
- Short amount of time before default occurs on unpaid loans
Details
Loan terms: 10 years
Loan amounts available: $2,001 to total cost of attendance, up to a $50,000 cap.
Eligibility: The loan is merit-based, so it has no credit or income requirements. Students must attend one of several eligible schools, mostly located in the Midwest. But A.M. Money encourages prospective borrowers to apply even if their school isn’t yet listed.
Forbearance options: Up to 12 months of forbearance available. Borrowers can make income-based payments for up to 36 months.
Co-signer release policy: No co-signer required
Funding U
Fixed APR
6.99% to 12.49%
with auto-pay
6.99% to 12.49%
with auto-pay
Why We Picked It
While Funding U’s rates are higher than other private lenders’, the company is unique in that it doesn’t make loans based on credit history and it doesn’t require student borrowers to use a co-signer. Borrowers qualify for a loan based on academic and work background, current courses, graduation prospects and likely future earnings.
Also, while Funding U’s loan limits are comparatively low, private loans should be used sparingly, so ideally borrowers won’t need them to finance larger gaps in funding.
Pros & Cons
- No late fees
- Interest rate estimate available without undergoing a hard credit check
- Co-signer not required
- Just one, 10-year loan term available
- No options for international students
Details
Loan terms: 10 years
Loan amounts available: $3,000 to $10,000 per year ($50,000 per student aggregate).
Eligibility: Students must meet GPA requirements and attend colleges that meet certain six-year graduation rate thresholds, depending on the student’s year in school. To qualify, first-year students must have a minimum high school GPA of 3.5, second-year students must have a minimum college GPA of 3.0, juniors must have a minimum GPA of 2.75 and seniors must have a minimum GPA of 2.5.
Note that only borrowers in these states can apply: Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, West Virginia and Wisconsin.
Forbearance options: Up to 24 months of forbearance allowed in 90-day increments. Borrowers must pay $30 per month while in forbearance, which is less generous than payment-free forbearance that other lenders offer. But this policy helps borrowers avoid occurring large amounts of interest.
Co-signer release policy: No co-signer required
Prodigy Finance
Why We Picked It
Many international students don’t qualify for federal student loans, and they typically need a U.S. citizen co-signer in order to get approved for a private student loan. Prodigy Finance is a London-based company that offers private student loans to international master’s students without requiring a co-signer.
You must attend an eligible school in one of the 18 countries Prodigy Finance lends in. All interest rates are variable, meaning they can change with market conditions, and borrowers receive rate offers based on their course of study and future earning potential. The average rate, according to Prodigy Finance, is 7.3%. The loan comes with a 4% administration fee.
Prodigy Finance doesn’t lend to U.S.-based borrowers living in these states: Alabama, Arkansas, Connecticut, Delaware, Hawaii, Idaho, Indiana, Iowa, Maine, Michigan, Mississippi, Minnesota, Montana, Nevada, New York, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Washington, West Virginia and Wyoming.
Pros & Cons
- No co-signer required
- Available to international students
- Multiple hardship repayment options available
- Charges an origination fee
- Only variable interest rates available
- High minimum APR
Details
Loan terms: 7 to 20 years
Loan amounts available: $15,000 minimum; maximum amount based on individual application.
Eligibility: Must be a resident of an eligible state and country attending an eligible school either part-time or full-time
Forbearance options: Available for nine months. Borrowers with financial hardships may apply for an interest-free payment arrangement; those facing low incomes, medical emergencies, unexpected family responsibilities or unemployment can apply for $0 or reduced payments.
Co-signer release policy: N/A
Methodology
We collected data from six student loan entities that offer student loans without a co-signer in at least 25 U.S. states and scored them across 12 data points in the categories of interest rates, fees, loan terms, hardship options, application process and eligibility. We chose the best to display based on those earning three stars or higher.
The following is the weighting assigned to each category:
- Loan terms: 25%
- Interest rates: 20%
- Hardship options: 20%
- Fees: 15%
- Application process: 10%
- Eligibility: 10%
Specific characteristics taken into consideration within each category included number of months of forbearance available, hardship repayment options beyond traditional forbearance, origination fees, clarity of non-credit-based requirements and other factors.
Lenders that offered maximum interest rates below 12% scored the highest, as did those that offered more than the standard 12 months of forbearance, offered interest rate discounts beyond the standard 0.25% for automatic payments, charged no origination fees and made the loan available to non-U.S. citizens.
In some cases, lenders were awarded partial points, and a maximum of 3% of the final score was left to editorial discretion based on the quality of consumer-friendly features offered.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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How to Get a Student Loan Without a Co-signer
If you want to get student loans without a co-signer, consider federal student loans first. Many student borrowers can qualify for federal unsubsidized or subsidized student loans. These types of loans don’t require a credit check and everyone who is eligible receives the same fixed interest rate.
Graduate students can qualify for grad PLUS loans, though these do require a check for adverse credit. Your credit score isn’t a factor, but the check looks for other red flags. If you’ve had a defaulted debt, foreclosure, repossession, tax lien or other major marks in the last five years, you may be denied. However, it’s possible to appeal that decision (or add a co-signer) to become eligible.
Federal student loans offer added protections that private debt does not. Federal loans are eligible for income-driven repayment plans, forgiveness and cancellation programs, and more flexible forbearance and deferment. During Covid-19, federal student loan payments were paused and interest rates were set at 0%—private student loan borrowers did not receive these perks.
If you’ve maxed out the federal aid available to you or you’re otherwise ineligible, you can borrow from private lenders without a co-signer—but you’ll generally need good credit and a stable income to do so. Most private lenders require a credit score in the mid- to high-600s to be eligible. Each lender sets its own requirements for applicants, so if you can’t qualify with one lender, search for others with less stringent criteria.
Can I Get Student Loans With No Credit and No Co-signer?
If you have poor credit or no credit and don’t want to add a co-signer to your application, you could still qualify for certain types of student loans—but you’ll pay more to borrow money.
Some lenders specialize in non-co-signed loans for students and provide alternate ways to gain approval. Instead of looking at your credit profile and income to determine eligibility, these lenders review factors like your grade point average, field of study, graduation prospects and estimated future earnings. While you may have an easier time getting approved for these loans, you’ll pay higher interest rates for the privilege.
Tips for Comparing Student Loans Without a Co-signer
If you don’t have access to a co-signer, start with federal subsidized student loans if you qualify, then borrow up to the maximum in federal unsubsidized student loans. As a graduate student who needs more money for school than what unsubsidized loans provide, you might turn to graduate PLUS loans, which require a credit check.
But there are specific negative marks the government is looking for, and if you learn you have an adverse credit history after you apply, you can explain the circumstances that led to it. The government could then determine that you’re eligible for a PLUS loan after receiving loan counseling. Otherwise, an additional option is to get an endorser, similar to a co-signer, that can help you qualify.
But if you are an undergraduate, or a graduate student who wants a PLUS loan and doesn’t have an endorser, it’s time to turn to private loans. When considering private student loans without a co-signer, look closely at fees and interest rates, which are often higher than what federal loans charge. It’s best to compare the overall cost by getting prequalified on the lender’s websites, if they allow you to. If you have a very high GPA or high future income potential, a student loan that qualifies you based on major and academic performance could be a strong option.
How to Apply for Student Loans Without a Co-signer
If you plan to borrow federal student loans, you’ll need to submit the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for all types of federal student aid, including loans and grants. You’ll need to include your personal and financial information (and that of your parents, if you’re a dependent student) and submit a new form for each year you attend school.
If you plan to apply for private student loans, check your credit score first so you know which lenders you might qualify for. If your credit score is low and you can wait to apply, spend some time improving your credit before borrowing money.
Once your credit is as strong as possible, research private lenders and compare their offerings. Look at factors such as the eligibility requirements, interest rates, applicable fees, repayment terms and how the lender can help if you later have trouble making payments. You can also prequalify with many lenders, which allows you to see the estimated interest rates you might qualify for before you formally apply.
After you’ve narrowed down your preferred lenders, you can submit an application. Most lenders come to a decision within a few days.
3 Alternatives If You Can’t Get Student Loans Without a Co-signer
1. Contact the Financial Aid Office
If you have trouble borrowing what you need to pay for school, contact the financial aid office. They can help you identify additional aid you might be eligible for, either through federal programs or local opportunities.
2. Search for Scholarships and Grants
Unlike student loans, scholarships and grants don’t need to be repaid. You might be surprised at what awards you can qualify for. Organizations give out money based on dozens of factors, including your academic achievements, athletic accomplishments, family income, ethnicity, niche interests or special talents. Any money you can earn via these awards reduces what you have to borrow now (and repay later).
3. Look into Income-share Agreements
An income-share agreement (ISA) allows you to pledge a portion of your future earnings in exchange for receiving college money today. These agreements are offered by colleges and third-party lenders, which will review your college major, expected future salary, grade point average and other factors.
If you qualify, you’ll agree to the terms offered—for example, you might pay 6% of your future salary for 10 years in exchange for $20,000 today. As your salary increases, your ISA payment will rise with it. There are often caps in place; for example, you may need to earn a minimum salary before payments kick in. The total repayment amount is also usually capped, so if you earn a high salary you may pay off the agreement ahead of schedule.
Unlike student loans, ISAs don’t accrue interest, but they can still be costly. Maximum repayment amounts can be as high as 2.5 times the amount you originally borrowed. Depending on the exact terms, some borrowers (especially high-earners) can pay more with this method than traditional student loans.
Summary: Best Student Loans Without A Co-Signer
Frequently Asked Questions (FAQs)
How are non-co-signed student loans different from co-signed loans?
In general, co-signed student loans come with lower interest rates because lenders view borrowers with co-signers as less of a risk. Student loans that don’t require co-signers may attempt to assess risk in other ways—by looking at your course of study and future earning potential, for instance, or your income and credit history, even if it’s minimal.
Non-co-signed student loans may charge higher origination fees to offset the higher risk they’re taking on by lending to borrowers without much experience with credit.
How is the interest rate on a non-co-signed student loan determined?
Since lenders may not be able to use your credit history to determine your interest rate, they’ll look at other factors. Students pursuing majors with strong job prospects and comparatively high post-graduation incomes may get lower rates. Depending on the lender, if you are an upperclassman or have a high GPA, your rate also could be reduced.
It’s also often possible to qualify for a lower interest rate if you choose a shorter repayment period, and if you opt to make monthly payments automatically from a checking account.
How should I choose a non-co-signed student loan?
First fill out the FAFSA for each year you’ll be in college so that you qualify for federal student loans. If you need to take out additional private loans, decide whether a merit-based student loan is an option for you and whether you could qualify for a lower rate based on your course of study and GPA. If not, choose a lender that does not take these characteristics into consideration. Also keep in mind that non-co-signed loans often come with low annual loan limits, so make sure you apply through lenders that will provide the amount of money you need.
Is it better to have a co-signer for a student loan?
If you have poor credit, you’ll likely have trouble qualifying for private student loans. Even if you can qualify, you’ll pay higher interest rates than what you could get with a qualified co-signer.
While many students can access federal student loans without a co-signer, those pursuing private loans are often better off using a co-signer with excellent credit.
Do student loans affect co-signer’s credit score?
Your student loans will appear on your co-signer’s credit report and can affect their credit score. That is one of the cons of co-signing a loan—any missed payments or negative marks will affect both the primary borrower and co-signer’s credit. Both parties’ debt-to-income ratios will also be affected by the student loan.
What credit score do you need to not have a co-signer?
Federal student loans do not require a minimum credit score. For private loans, exact criteria vary but most require a minimum credit score in the mid- to high-600s. However, to get the best interest rates, you’ll likely need a score around 800.
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