Check Your Eligibility For Student Loans With No Cosigner

Even though higher education is a necessity for better job opportunities with higher paying salaries, it is an expensive pursuit that can leave your parents’ and your bank accounts dry. For those who want to pursue higher education, and do not have the means to pay the colossal amount of tuition fees; after federal grants and scholarships, taking an education loan is your best option. Preferably, while borrowing money for your education, try federal student loans rather than private student loans. Moreover, federal student loans do not require a cosigner whereas getting a private student loan without a cosigner is quite strenuous.

TYPES OF FEDERAL STUDENT LOANS

The US Department of Education, to aid students financially, has two federal loan schemes:

1. The William D. FordDirect Loan Program which is the largest federal student loan program. Under this program, the US Department of Education is your lender. The various types of loans available under this scheme are as follows:

1. Direct Subsidized Loans:

These are for eligible undergraduate students who illustrate their financial need to assist in covering their cost of college or career school.

1. Direct Unsubsidized Loans:

These are made available to eligible undergraduate, graduate and professional students who do not demonstrate financial need.

1. Direct PLUS Loans:

These loans are for graduate or professional students, and parents of undergraduate aspirants who need assistance to pay for education expenses not covered by other financial aid.

1. Direct Consolidation Loan:

It allows you to combine all your other federal student loans into a single loan with a single loan servicer

2. The Federal Perkins Loan Program is a loan program that is school-based for undergraduate and graduate students with special financial needs. The school is the lender, and the extent of financial aid varies from school to school.

ELIGIBILITY FOR FEDERAL STUDENT LOANS

To be eligible for the aforementioned federal student loans, you need to meet some set criteria which are as follows

• Demonstrate financial need difference between the Cost of Attendance and Expected Family Contribution) for most federal student loan programs except for the Direct Unsubsidized Loan.
• Be a U.S citizen
• Or be an eligible non-citizen
• Must have a valid Social Security Number (exception: students from Republic of Marshall Islands, Federated States of Micronesia or the Republic of Palau)
• Have registration with Selective Service
• Enrolled or to be accepted as a regular student in an eligible degree or certificate program.
• Be enrolled at least half-time to be eligible for the Direct Loan program
• Perform satisfactorily in college or career school and maintain academic progress
• Sign the certification statement of the Free Application for Federal Student Aid (FAFSA) and make a statement that:
• You are not on default on any federal student loan
• You do not owe money to any federal student grant
• You will utilize the federal student loan given to you only for education purpose
• Show that you are capable of attaining a college/career school education degree by:
• Possessing a high school diploma or a recognized equivalent or a General Education Development degree
• Complete high school education in a home setting approved by the state law
• Enroll in an eligible career pathway program and meeting anyone the “ability to benefit” alternative

The amount of loan you can borrow each year or each term depends upon your financial need. Additionally, regardless of your financial need, there is an upper limit on how much you can borrow each term or year.

If you have hit your loan limit, you can ask your parents to borrow from the Parent Direct PLUS Loan Program. Or if that’s not possible, you can apply for higher unsubsidized Strafford loan limits program.

Before applying for a federal student loan program, check out the studentaid.ed.gov website to verify your eligibility for all available student loan programs. Rest assured, you can get student loans with no cosigners .