Paying for College

Paying for college can be challenging, but paying for college without the help of a cosigner is even more difficult.

There are some student loan programs which do not require a cosigner. The popular federal Stafford Loan does not require a cosigner because it is not credit-based, so the Stafford Loan is the appropriate first step for all students in search of low-cost financing. Unfortunately, the Stafford loan comes with loan limit restrictions- freshmen can only borrow $3,500, sophomores can borrow $4,500 while juniors and seniors can borrow up to $5,500 a year.

If you need more than the Stafford loan program allows, finding a student loan without a cosigner is difficult. Private student loans are generally credit-based, so either the borrower and/or the cosigner must pass a credit test imposed by the lender. For most traditional students, it’s difficult to pass a lender’s credit test on their own. In most cases, the student would need a steady job and years of credit history to qualify without a cosigner. If you do not meet those criteria, a private student loan will be difficult to find.

Students without access to a creditworthy cosigner are one of the most disadvantaged constituencies when it comes to finding college financing. While scholarships and federal loans can help, it’s often not enough.

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