If you’re worried about paying for your next or last year of graduate school, you might revisit the world of student loans. After all, a loan could deliver money straight to your school before you run the risk of missing a single class.
The difference now that you’re in grad school is that you might not have (or need) a creditworthy cosigner for a private loan.
Student loans without cosigner support could help pay for your next degree. But you’ll want to brush up on your options before signing on the dotted line.
Federal student loans without cosigner requirements
If you’re looking at student loans without cosigner requirements, you might have already maximized your federal loan allotment. Or maybe you’re just looking for better loan terms than those offered by the government. Whatever the case, you could benefit from a quick refresher on your federal loan options.
As an independent student, you can take out up to $20,500 worth of Direct Unsubsidized Loans per year. You’re also limited to $138,500 total when you include any federal loans you took out to pay for your undergraduate degree.
Those restrictions might make Direct PLUS Loans appealing despite the fact they’re tagged with higher interest rates and origination fees.
The good news is that PLUS Loans allow you to borrow any amount up to the cost of your program. The bad news is that an adverse credit history would require you to document special circumstances or find a cosigner. The Department of Education uses the word “endorser.”
If you’re prioritizing student loans without cosigners, that might erase PLUS Loans from your list of options.
Private student loans without cosigner requirements
It’s also possible that you’re looking for student loans without cosigner support because your previous cosigner can’t (or won’t) cosign a new loan. Whatever your situation, you do have private loan options.
There are many benefits of going to a private lender. For one, you save on the loan origination fees of PLUS Loans. Citizens Bank, for example, claims that their average graduate student borrower saves $948 on fees.
Graduate student loans from private lenders also come with lower interest rates than those offered to undergraduates. For example, at Sallie Mae in January 2018, the highest interest rate offered to undergraduates was 11.85%. Meanwhile, the highest rate presented to grad students was 8.56%.
But there’s a hard truth. Without a cosigner, you’re less likely to score a rate at the bottom of the range.
How to find a private student loan without cosigner support
Some top lenders, including CommonBond, require you to have a cosigner for your graduate school loan. Others, such as Sallie Mae, point out that graduate students with good credit are four times more likely than an undergraduate student to qualify for a loan on their own.
So, the first step in shopping around is to identify reputable lenders that offer private student loans to grad students without requiring cosigners.
Then you can focus on making yourself the best possible applicant. For most lenders, you’ll need to meet some basic criteria. That’ll include handing over a valid ID and being a U.S. citizen or permanent resident.
The application itself will be decided on primarily by your credit history and your debt-to-income ratio. Those two factors will also shape the interest rate that you’re quoted.
If you have a bachelor’s degree, some job experience, and a superior credit score, you’re well-positioned. We estimate that you increase your chances of qualifying with top lenders when your credit score reaches 690. Once you’re in the 720-and-above range, you’re more likely to secure a low rate.
But maybe you haven’t had time to find employment or build your credit into those ranges. If you’re anything like the average grad student, you probably already have student loan debt, too.
Be wary of no-credit student loans without a cosigner
During your search, you might come across private student loans without cosigner requirements and no credit history needed.
That might sound appealing at first. But remember that in the world of private loans, your credit history is like currency. It helps you (or doesn’t) get a favorable interest rate and the loan terms that fit your needs.
Without your credit (or a cosigner’s) to consider, there’s no way for less reputable lenders to judge how likely you are to repay your loan. As a result, you might be stuck with some of the consequences of no-credit loans:
- A higher interest rate
- A shorter repayment term
- A lack of repayment protections
Ideally, you’ll find a private loan that matches all of your needs, from how much you need to borrow to how you repay it.
Say you have another couple years of grad school ahead of you, for example. You might hold out for a loan that allows you to defer payments until after graduation. You might also seek out lenders that offer forbearance. It could protect you if the job you have lined up after school doesn’t pan out.
If you don’t have the credit score needed for a private student loan with these friendlier terms, return to the drawing board. After all, you’ll want to avoid student loans without cosigner requirements that accept bad credit. To do so, consider spending the time necessary to improve your credit score. You might even rethink enlisting a cosigner.
Find the right graduate student loan for you
If you made it this far, you’ve already considered all the ways to get financial aid for grad school. You’re also done wondering, “Is there any way to get a student loan without a cosigner?” Now you know it’s possible.
Taking out a federal or private student loan without cosigner help probably wasn’t your top preference. But if you find the right loan from the right lender, it will do more than cover the cost of your next year of grad school. It will also set you up for a successful repayment once you receive your diploma.
Need a student loan?Here are our top student loan lenders of 2018!
1 = Citizens Disclaimer.
2 = CollegeAve Autopay Disclaimer: All rates shown include the auto-pay 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.
* 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.
3 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
|4.12% – 11.85%*3||Undergraduate and Graduate||Visit SallieMae|
|3.69% – 12.07%2||Undergraduate, Graduate, and Parents||Visit CollegeAve|
|4.07% – 12.19%1||Undergraduate, Graduate, and Parents||Visit Citizens|
|3.83% – 12.11%||Undergraduate and Graduate||Visit Ascent|
|4.63% – 9.71%||Undergraduate and Graduate||Visit LendKey|
|3.62% – 9.79%||Undergraduate, Graduate, and Parents||Visit CommonBond|