While you are still studying the source of income is hardly consistent enough for you to have a decent credit score. And there lies the problem with securing any student loan. Without a good credit score or rather in the absence of one, you will require to present a co-signer in order to secure a student loan. Research says that 90 percent of all student loans in the U.S. have a parent or a guardian as the co-signer.
Securing financial aid is critical for you to ensure your long-term education goals. Unfortunately, without a co-signer, getting a student loan might be a challenging feat. Thankfully, there are federal loans as well as few private student loans that do not require a co-signer.
However, before you pursue these lenders, you must remember that education is becoming expensive by each passing year. Yet, federal loan lenders don’t seem to be keeping up. While federal loans are the safe bet, given the gap in the system, many may not be able to get by with the maximum amounts offered.
FEDERAL STUDENT LOANS OPTIONS
These student loans are offered based on an individual’s financial need and the government pays the accrued interest during the individual’s studying years. These loans also offer subsidized interest.
This federal student loan is offered to parents instead of students themselves. These loans have an interest rate of 7.6% which is quite high compared to other types of federal student loans. However, the PLUS Loan given its other benefits still stands to be a better choice than loan deals offered by private lenders.
This Student Loan Program though discontinued since 2017, used to be offered to students who can demonstrate genuine financial need and prove their merit based on consistent performance record and hail from an approved post-secondary school.