College Students: What to Do Before Borrowing Loans for Without a Cosigner

Written by Andrew Pentis

March 31, 2021July 1, 2021Paying for CollegeFeatured, Student Loans1341Andrew PentisAmanda GarciaSEO

Updated on March 31, 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

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	1.19% to 11.98% ¹ VARIABLE APR	Visit Lender
	1.62% to 11.73% ² VARIABLE APR	Visit Lender
	0.94% to 11.44% ³ VARIABLE APR	Visit Lender

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²Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

³Rate range above includes optional 0.25% Auto Pay discount.

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Breakups are never easy, especially if it’s with your student loan cosigner.

When your cosigner helped you take out your first private student loan for college, you probably thought they were in it for the long haul. Now you’ve learned that your cosigner is unable or unwilling to help you borrow again.

This might seem like a major setback, but you can overcome it. In fact, there are plenty of ways to pay for school, including loans for college students without cosigner support. Here’s how you can get started.

1. Fill out the FAFSA
2. Search for scholarships
3. Trim your education costs
4. Reconsider your federal loan options
5. Find a new cosigner for private loans
6. Consider student loans without cosigner support
● Plus: How did you end up without a cosigner?

1. Fill out the FAFSA

You might have leaned on private student loans to cover college costs. The most important thing to do now is to complete the Free Application for Federal Student Aid (FAFSA).

Without the FAFSA, you close the door on federal loans, governmental grants and work-study opportunities. Those options could come in handy as you overcome the loss of your cosigner.

2. Search for scholarships

You might think scholarships are reserved for high school seniors, but that’s just one of the most common myths about scholarships.

There are plenty of scholarships for college students. Prioritize applications that are meant for students of your experience level and field of study.

There are many ways to win scholarships while attending college, including:

Your school’s financial aid office
Your employer
Contests
Local and national foundations

Think about how your major area of study, minor in-school accomplishments, or even your part-time job might help you score scholarships.

3. Trim your education costs

Before you consider borrowing more money without a cosigner on board, try to trim your college costs. That might offset your need for student loans for college students without cosigner support.

Drastic measures include transferring to a more affordable school, even a community college, or taking time off to save for your cost of attendance. But there are also small ways to save, such as:

Despite adopting these measures, you might still need to take out loans for college students without cosigner backing. But you’ll at least be able to lower your potential debt.

4. Reconsider your federal loan options

If you previously relied on private student loans for college, you probably had a good reason. Maybe you scored a significantly lower interest rate with a private loan company, thanks to your former cosigner.

But now that you’re considering loans for college students without cosigner requirements, there’s no better place to look than the federal government. Direct subsidized loans and direct unsubsidized loans for undergraduates don’t require a cosigner. You borrow the loans in your name, and it’s your sole responsibility to repay them.

Federal student loans come with features a private lender likely can’t match. For example, you can switch your repayment plan for a federal loan to an income-driven repayment (IDR) plan, which limits your monthly payments to a percentage of your income, after you leave school.

5. Find a new cosigner for private loans

Perhaps you worked with a private loan company in the past because you maxed out your federal student loan allotment and needed to fill in the gaps.

Whatever the case, understand that you could find a new cosigner to replace your old one. If your mom or dad cosigned your previous loan, you might find a cosigner from a different branch of your family tree. A grandparent or other relative could stand in this time around.

But your cosigner doesn’t have to be a family member — it could be a friend. Many private student loan companies only require your cosigner to be creditworthy and have a positive debt-to-income (DTI) ratio. Ask your lender about its specific criteria before putting your next cosigner through the application process.

6. Consider loans for college students without cosigner help

If a private lender is best for your situation, be aware that it’s possible to take out education loans for college students without cosigner support.

About 91% of undergraduate private student loans had a cosigner in the 2020-2021 academic year, according to a report from MeasureOne. This high percentage is likely because most college students don’t have the credit history and regular income to qualify for private student loans on their own.

You could be in the 9% minority, however. Not all lenders require undergraduate borrowers to have a cosigner. And if you have a credit score near or above 700 and earn a regular paycheck, you could likely earn a private loan approval on your own at most lenders.

Ensure you understand the pros and cons of loans for college students without cosigner assistance. Without the built-in support of a cosigner, you’ll be responsible solely for repayment. So, don’t borrow more than you can repay once you leave school.

Top lenders offering private loans for college students without cosigners

The table below has some private student loan lenders offering loans with no cosigner, as of March 5, 2021.

	Stated eligibility criteria	Note that …
Ascent	Two years of credit history, $24,000 minimum income	If you don’t meet those requirements, you could still qualify for an Ascent income-share agreement-like loan
Citizens Bank	Good credit, no prior student loan default	Noncitizens and non-permanent residents have to find a cosigner
College Ave	Credit score of 660 or above	If you’re unsure if you can qualify on your own, try the lender’s prequalification tool
Earnest	Credit score of at least 650, annual income of $35,000-plus and three years of credit history	Non-citizen students without permanent resident status (who have a Social Security number) are eligible with a cosigner
Education Loan Finance	Credit score of at least 680, annual income of $35,000-plus and three years of credit history	ELFI has a minimum loan amount of $10,000
Funding University	GPA and school graduate rates vary by your year in the degree program	Your academic success, job experience and projected postgraduate income determine the fate of your loan application
MPower Financing	Attend a degree program in the U.S. or Canada and be within two years of graduation	Your future earning potential, not your credit score, is used to determine your eligibility
PNC	“Satisfactory” credit, meet unspecified debt-to-income (DTI) criteria	Students must be citizens or permanent residents living in the U.S. for at least two years, enrolled at least half time; cosigner required for 17-year-olds
Prodigy Finance	Attend an eligible graduate school in an eligible state	International students and American students studying abroad are eligible to borrow
SoFi	Good credit	Half-time enrollment is required for all SoFi loans

How did you end up without a cosigner?

Student loan cosigners carry a great deal of risk.

Your cosigner agrees to be responsible for the repayment of your loan if you fail to keep it up. They also put their credit history on the line, limiting their own ability to borrow money.

That’s why it might not be wise to have your parents cosign a loan. It could harm your relationship with them or put the family’s finances at risk.

With that in mind, a cosigner might refuse to cosign your student loan because:

They have a limit on the amount of debt they’re willing to cosign.
They want to see you repay one loan before agreeing to cosign another.
They have money problems.

If you currently find yourself without a cosigner, don’t waste time being angry. Thank your cosigner for the previous show of support.

Your cosigner will remain a part of your previous loan agreement (or agreements). You’ll want to keep your relationship intact.

Need a student loan?

Check out our top picks below or learn more about other ways to pay for college.

Lender	Variable APR	Degrees That Qualify	More Info
	1.19% – 11.98%¹	Undergraduate Graduate	Visit College Ave
	1.62% – 11.73%²	Undergraduate Graduate	Visit SallieMae
	0.94% – 11.44%³	Undergraduate Graduate	Visit Earnest
	1.64% – 11.45%⁴	Undergraduate Graduate	Visit Ascent
	1.89% – 11.92%⁵	Undergraduate Graduate	Visit SoFi
	N/A ⁶	Undergraduate Graduate	VISIT CITIZENS
Learn more about private student loan lenders. Learn more about private student loan lenders.

¹

²Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

³Rate range above includes optional 0.25% Auto Pay discount.

⁴

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⁶

Citizens Bank Disclosures

Undergraduate Rate Disclosure: Fixed interest rates range from 3.48% – 11.64% (3.48% – 10.78% APR).

Graduate Rate Disclosure: Fixed interest rates range from 4.89% – 11.64% (4.89% – 11.34% APR).

Business/Law Rate Disclosure: Fixed interest rates range from 4.49% – 10.39% (4.49% – 9.68% APR).

Medical/Dental Rate Disclosure: Fixed interest rates range from 4.43% – 9.19% (4.44% – 8.89% APR).

Parent Loan Rate Disclosure: Fixed interest rates range from 4.80%-8.23% (4.80%-8.24% APR).

Bar Study Rate Disclosure: Fixed interest rates range from 7.39% – 12.94% (7.40% – 12.83% APR).

Medical Residency Rate Disclosure: Fixed interest rates range from 6.99% – 10.49% (6.98% – 10.09% APR).

ERL Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of May 1, 2022, the 30-day average SOFR index is 0.29%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the 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 are only available for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical 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.

College Students: What to Do Before Borrowing Loans for Without a Cosigner