Guaranteed student loans come with some basic fundamentals. These fundamentals have to be fully understood in order for a person to truly benefit from them and finance their education in the most optimal fashion.
Guaranteed Student Loans Without Cosigner
2 Types of Loans That Are Used To Finance Your Education
- Federal student loans are loans that are offered by the U.S. Department of Education, therefore these are loans that are provided for and guaranteed by the government. Regardless of a person’s financial situation, almost every student is eligible for some form of these loans. This is because the loans that are provided by the U.S. Department of Education do not base their qualifications on a person’s credit history nor do they tether their decision to provide the loans of any other financial issue with the person. Instead, the loans are issued on a need based system. The more a person needs, the larger the loan they will be offered.
- Private student loans, on the other hand, are not guaranteed loans and this is because they are not offered by the federal government. Instead private loans are offered by financial institutions that are looking to loan money out money out to people who are looking to get educated and increase their revenue in the future. Because the financial institutions provide these loans as a business, however, they are doing it primarily to earn money and therefore look at every potential borrower as a risk. The better a person’s credit and the more money the person is earning the less of a risk that person is and the more likely that the person will be provided a loan. Nonetheless, even if the person is provided a loan eventually it does not mean that the loan was guaranteed.
Getting The Guaranteed Student Loan Without Cosigner
- Since the only guaranteed loans that are available are loans that are provided by the federal government, the best way to get a guaranteed student loan without a cosigner is to apply for federal student loans. Most of the students who apply for a government student loan will not require a cosigner in order to qualify for some financial backing.
- It does not matter if you have a negative credit history or if you are not making a large amount of personal income, if you apply for a federal loan using the Free Application for Federal Student Aid (FAFSA) and the federal government determines that you need, they will provide you with money that you can use to support your educational goals.
- If you have bad credit and are interested in getting a student loan than read how to get a student loan with bad credit and no cosigner
Therefore, always remember, if you are in search for a guaranteed student loan without a cosigner use the FAFSA form and find out how much money you qualify for before ever thinking about applying for private loans.