It’s not rocket science. The further you are in your academic career, the more financially independent you become.
That’s why just 63% of advanced-degree students have cosigners on their student loans. Compare that to 92% of undergraduate students who enjoy cosigner support, according to MeasureOne.
If you’re going to law school, seeking an MBA or considering other professional degrees, you might have already exhausted your financial aid opportunities. In the interest of independence, you could now be considering student loans without cosigner help. To give you some tips, let’s look at the following topics:
- Federal student loans without cosigner requirements
- Private student loans without a cosigner
- Compare your federal and private student loan options
- A final word on student loans without cosigner support
Two federal loan options, which are accessible after completing the FAFSA, don’t require cosigners for graduate or professional students.
Direct Unsubsidized Loans
You’re allotted $20,500 in Direct Unsubsidized Loans to put toward your graduate or professional degree. Your combined limit for your undergraduate and graduate education is $138,500. (At most, $65,500 of that amount can be in Direct Subsidized Loans from your undergraduate degree.)
Attending an MBA program could cost between $70,000 and $200,000, says private lender College Ave. So you can see why you might need help beyond unsubsidized loans.
If you maximize your unsubsidized loan allotment during graduate school, you could then resort to a Direct PLUS Loan.
Grad PLUS Loans
Like Direct Unsubsidized Loans, PLUS Loans don’t require a cosigner. But you would need to have better than an adverse credit history to qualify. That’s key among the facts to know before applying for PLUS Loans.
If your credit history fails to make the grade, you could find an endorser, which is the federal government’s equivalent of a cosigner.
But without a creditworthy cosigner, you might start considering your private student loan options.
If you took out a private loan for your undergraduate degree, you’re already familiar with applying for and securing a loan. You supply personal and financial information to lenders and shop for your best possible interest rate and loan terms.
The key difference is that when you were an undergrad, you likely rode the coattails of a cosigner. Lenders consider credit history, debt-to-income ratio and other factors when evaluating a borrower. Because you were likely a teenage or 20-something borrower without much of a credit history, your cosigner would have stood in for support.
Now that you have an undergraduate degree and possibly even some work experience, you might be able to secure a favorable loan from a private lender on your own. In fact, graduates are four times more likely than their younger peers to secure student loans without cosigner backing, according to Sallie Mae.
So if you were wondering how to get a student loan without a cosigner, now you know it’s possible.
Some lenders even offer student loans without cosigner backing specific to your degree type. For example, Sallie Mae offers loans for students seeking an MBA or pursuing a health profession, among other degrees.
If you’re focused on student loans without cosigner requirements, you can receive one from the federal government or a private lender. Knowing which lender is best is the real challenge.
Your interest rate is a good place to start. Via the federal government, you’ll find fixed interest rates. If you’re borrowing for the 2020-2021 school year, Student Loan Hero has forecasted record-low federal loan interest rates, including:
- Direct Unsubsidized Loans for graduate students: 4.30%
- Direct Grad PLUS Loans: 5.30%
The federal government also applies a fee on these loans. For Direct Unsubsidized Loans disbursed before Oct. 1, 2019, that would be 1.062 percent. For Grad PLUS Loans lent before Oct. 1, 2020, 4.236% was the mark. The fee is taken out from your loan amount, making it important to apply for the right amount of funds.
Many private student loan companies listed on our site don’t charge loan origination fees. They also have competitive interest rates, though these could vary, depending on your creditworthiness.
Aside from offering variable interest rates — rates that can change over the life of your loan — private lenders might be more appealing for other reasons.
If you’re a dental school student, for example, you might have off-campus expenses. A private lender like Citizens Bank lends as much as $350,000 to students pursuing health professions. By comparison, a Direct PLUS Loan would only cover the cost of your school’s attendance.
Being a graduate or professional student makes you independent in the eyes of the federal government. That status allows you to borrow more for your education than a dependent undergraduate. It’s one of many differences between undergraduate and graduate school loans.
But just because you could borrow from the government without a cosigner doesn’t mean you should do the same with a private lender.
If you find yourself Googling the words “student loans without cosigner bad credit,” for example, you might be better off relying on your federal loan options or finding a good cosigner. For example, you can explore ways to find a cosigner when your parents aren’t options.
But you might still be prioritizing private student loans without a cosigner and no credit history required. In that case, ensure that you get your lowest possible interest rate by improving your credit first.
Need a student loan?Here are our top student loan lenders of 2021!
|1.04% – 11.98%1||Undergraduate, Graduate, and Parents|
|1.13% – 11.23%*,2||Undergraduate, Graduate, and Parents|
|3.84% – 9.40%3||Undergraduate and Graduate|
|1.05% – 11.44%4||Undergraduate and Graduate|
|1.22% – 11.66%5||Undergraduate and Graduate|
|2.76% – 7.14%6||Undergraduate and Graduate|
|1.24% – 11.99%7||Undergraduate and Graduate|
|* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers. |
1 Important Disclosures for College Ave.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
Information advertised valid as of 4/22/2021. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.
2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for Earnest.
5 Important Disclosures for SoFi.
UNDERGRADUATE LOANS: Fixed rates from 4.23% to 11.26% annual percentage rate (“APR”) (with autopay), variable rates from 1.22% to 11.66% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.13% to 11.37% APR (with autopay), variable rates from 1.12% to 11.73% APR (with autopay). MBA AND LAW SCHOOL LOANS: Fixed rates from 4.30% to 11.52% APR (with autopay), variable rates from 1.29% to 11.89% APR (with autopay). PARENT LOANS: Fixed rates from 4.60% to 10.76% APR (with autopay), variable rates from 1.22% to 11.16% APR (with autopay). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin and your APR may increase after origination if the LIBOR increases. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 4/1/2021. Enrolling in autopay is not required to receive a loan from SoFi. SoFi Lending Corp., licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. NMLS #1121636 (www.nmlsconsumeraccess.org)..
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
Undergraduate Rate Disclosure: Variable interest rates range from 2.76% – 7.14% (2.76% – 7.14% APR). Fixed interest rates range from 3.01% – 7.50% (3.01% – 7.50% APR).
Graduate Rate Disclosure: Variable interest rates range from 2.19% – 6.73% (2.19% – 6.73% APR). Fixed interest rates range from 2.89% – 7.09% (2.89%-7.09% APR).
Business/Law Rate Disclosure: Variable interest rates range from 1.36% – 9.54% (1.36% – 8.82% APR). Fixed interest rates range from 4.13% – 9.84% (4.13% – 9.12% APR).
Medical/Dental Rate Disclosure: Variable interest rates range from 1.36% – 8.34% (1.36% – 8.04% APR). Fixed interest rates range from 4.03% – 8.64% (4.03% – 8.34% APR).
Parent Loan Rate Disclosure: Variable interest rates range from 2.10% – 7.41% (2.10%-7.41% APR). Fixed interest rates range from 4.69% – 7.83% (4.69% – 7.83% APR).
Bar Study Rate Disclosure: Variable interest rates range from 4.45% – 9.60% (4.45% – 9.53% APR). Fixed interest rates range from 7.39% – 12.94% (7.38% – 12.81% APR).
Medical Residency Rate Disclosure: Variable interest rates range from 3.55% – 7.05% (3.55% – 6.77% APR). Fixed interest rates range from 6.99% – 10.49% (6.97% – 10.07% APR).
Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of March 1, 2021, the one-month LIBOR rate is 0.11%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.
Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7 Important Disclosures for Discover.
Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.