student loans without cosigner

[Tiggeroo]

I have heard it is possible for a college student to obtain a student loan without a cosigner with only a minimal amount of credit in their name, sometimes even just a checking account.
I'm referring to loans other then Stafford. Does anybody have info on this

 

[Missy Mouse]

I have heard it is possible for a college student to obtain a student loan without a cosigner with only a minimal amount of credit in their name, sometimes even just a checking account.
I'm referring to loans other then Stafford. Does anybody have info on this

Hi, I'm able to obtain student loans every semester without a cosigner, no problem. I took out a TERI loan through Citizen's bank last semester. I have a checking account but it was never asked of me.

 

[MagicalMom]

I could be wrong, but I don't think they even do credit checks for a student loan.

 

[Tiggeroo]

they don't do credit checks for stafford loans but the max amount for a freshman is I believe 2600. I"m trying to find out about supplemental loans if a student has nobody to cosign for them or parents for a plus loan.

 

[Tiggeroo]

ok I just looked at Teri loans. It states you need to be credit-worthy or have a co-signer. I don't know if just maintaining a checking account and having nothing negative would be considered sufficient.

 

[scarlett873]

My husband is in the student loan industry...I'll direct him this way!

ETA: If he doesn't respond by the time he comes to get me here at work, I'll make sure he logs in at home to offer any assistance!

 

[Kirby]

My son is in his first year of college and he had to have a co-signer on a non-Stafford student loan. They said once he had been through his first year, he wouldn't need one.

 

[rhett972]

Hello Tiggeroo.

This is a great question and the answer is a little multi-faceted so I'll try to keep it "jargon-free" as much as I can.
There are two types of borrowers: credit-ready and credit-tested. A credit-ready borrower is someone who has zero credit history - nada, zip, zero. A credit-tested borrower is someone who has some form of credit history. Credit-tested borrowers come in two flavors: credit worthy or credit risk, a subjective description based on your credit score and other factors.

Generally speaking, credit-ready users are prime candidates for certain types of short-term loan situations that require almost immediate repayment installments (i.e. low-limit credit cards). However, they are not good candidates for large loans or loans that feature extended or deferred repayment schedules (i.e. student loans).

Typically, this explanation makes a lot of parents sigh but the good news is that this is not simply a credit/no-credit equation. For the most part, the requirements for supplemental "private" loans varies by school and is part of the lender/school negotiation process. For example, at Stanford, students are not required to have any credit history at all. At University of Nebraska Medical School, there are no minimum income requirements and the credit score requirements are relatively low. Check with the school regarding the typical requirements for private loan borrowers. You'd be surprised how flexible some can be.

I would also throw a suggestion to you, while I am here. There are a lot of financing options for higher education (private loans being only one of them). I don't know about your credit history but you may want to consider taking out a PLUS loan for your student instead of trying to get them into a higher-interest private loan. Granted, this is technically your loan instead of the student's but if you have an arrangement with your student to pay it back for you, this will mean a lot less interest for them over the long run. Even if you have had some credit issues, PLUS is very flexible and a lot easier to qualify for compared to other loan programs.

Please let me know if I can provide additional information.