Best Student Loans Without a Cosigner of September 2022
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Best student loans without a cosigner of September 2022
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
The cost of college is expensive, and many students need to take out loans to pay for the expenses. However, not every student borrower has the option to enlist a cosigner for their student loan, making many types of student loans unavailable to them.
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College Ave Undergraduate Student Loans
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Sallie Mae Undergraduate Student Loans
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Ascent Undergraduate Student Loans
Luckily, there are several lenders that don't require cosigner for their loans. *While our ratings might seem a bit low for a "best of" guide, that's because our methodology rates these companies using the same system we use for other student loan lenders with lower rates and more options for loan term lengths. However, many of those options require a cosigner or a solid credit history, making them inaccessible to some borrowers.
Federal Direct Subsidized Loan
- Government pays interest while in school
- Low interest rate
- No credit check required
- No cosigner needed
- Low maximum loan amount
- Eligibility based on financial need
- 10-year standard repayment term
- Rates change annually
- Loan maximum of $3,500 for first-years, $4,500 for second-years, and $5,500 per year for each school year after that
The government pays interest on these loans while you're in college. It also covers interest during a six-month grace period after you graduate, before you must begin repaying your student loans. You'll have to demonstrate financial need to qualify for these loans. Only undergraduate students are eligible.
As far as student loans go, this is the best option out there.
What to watch out for: Low loan maximum. For first-year students, you may only borrow up to $3,500 in subsidized loans for your freshman year, and you'll only qualify for the maximum depending on your financial need. The amount increases each year you're in school, but is still much lower than with other private lenders.
Read more about subsidized loans.
Federal Direct Unsubsidized Loan
- Low interest rate
- No credit check needed
- No cosigner
- Not based on financial need
- Interest accrues while you're in school
- No variable loans
- 10-year standard repayment term
- Rates are fixed, but new rates for each school year
- Loan maximum of $5,500 for first-years, $6,500 for second-years, and $7,500 per year for each school year after that
Interest will accrue on unsubsidized loans while you're in school and during your grace period. If you're able, you should try to pay off that interest each month to prevent it from capitalizing. These loans aren't based on financial need. Undergraduate, graduate, and professional students are eligible.
What to watch out for: Interest capitalizing. The federal government doesn't cover your interest while in school like it does with subsidized loans. Any unpaid interest is capitalized, or added onto your loan balance after periods of nonpayment, including forbearance, deferment, and after your grace period. This will increase your overall loan balance, and you'll later pay interest on that higher amount, upping the total cost of your loan.
Read more about unsubsidized loans.
Ascent Non-Cosigned Credit-Based Loan
- No cosigner needed
- Competitive rates
- No prepayment or origination fees
- Cashback reward after graduation
- Many options for repayment term length
- Late fee
- Requires some credit history
- Apply through your computer
- Customer service available via phone, email, and physical mail
- Provided you are eligible, you'll receive 1% of your initial loan balance as a cashback bonus after graduation
- Five, seven, 10, 12, 15, or 20-year repayment terms available (20-year term only available for variable loans)
- Undisclosed late fees
- Loan minimum of $2,001, overall maximum loan amount of $200,000
- Loans made through Bank of Lake Mills, Member FDIC
This loan may be the right choice for you if you have an established credit history and are looking for some of the best rates on a loan without a cosigner. You're able to borrow up to $200,000 for an academic year with this type of Ascent loan, and you'll need to meet a minimum income requirement of $24,000 to qualify.
Watch out for: Credit history required. You need to have more than two years of credit history and hit an undisclosed minimum credit score to qualify for an Ascent non-cosigned credit-based loan. Other lenders on our list don't take credit into account.
Read more about Ascent.
Ascent Non-Cosigned Outcomes-Based Loan
- No cosigner needed
- No credit history required
- Competitive rates
- No prepayment or origination fees
- Cashback reward after graduation
- Many options for repayment term length
- Late fees
- Low loan maximum
- High interest rates
- Apply through your computer
- Customer service available via phone, email, and physical mail
- Approval decisions based on factors like GPA, major, and school of attendance
- Provided you are eligible, you'll receive 1% of your initial loan balance as a cashback bonus after graduation
- Five, seven, 10, 12, 15, or 20-year repayment terms available (20-year term only available for variable loans)
- Undisclosed late fees
- Loan minimum of $2,001, maximum loan amount of $20,000
- Loans made through Bank of Lake Mills, Member FDIC
Instead of basing lending decisions on credit for this loan, Ascent takes into account your school, program, graduation date, major, GPA, and cost of attendance, among other factors. This could be a good choice if you have limited credit history. You need to be a college junior or senior to qualify and must maintain a GPA of 2.9 or higher.
Watch out for: Low loan maximum. You're only able to borrow up to $20,000 with this Ascent loan. That's a higher maximum than federal subsidized loans, but you'll pay a substantially higher interest rate.
Read more about Ascent.
Funding U Undergraduate Student Loan
Funding U Undergraduate Student Loans
- No prepayment, origination, or late fees
- No cosigner needed
- Low maximum loan amount
- Relatively high APRs
- One repayment term option
- Loans unavailable for residents of 19 states
- Only fixed-rate loans
- Limited customer support options
- Apply through your computer or mobile device
- Customer service available via email
- 10-year repayment term
- Loan minimum of $3,001, maximum up to $15,000
- Residents of AL, AK, DE, ID, KY, LA, MA, MN, MS, MO, NV, NH, ND, OK, RI, SD, UT, WA, and WY ineligible for loans
- No cosigner allowed
- Loans made through Funding University
Funding U doesn't make lending decisions solely based on creditworthiness. It will also consider factors like your academic performance and future potential career success when choosing to offer you a loan.
Watch out for: No variable-rate loan options. If you want to take out a loan with Funding U, it will have to be a fixed-rate loan. While this means you'll likely start out with a higher rate than some variable options with other lenders, your rate won't fluctuate over the life of your loan.
Read more about Funding U.
MPower Financing Undergraduate Student Loan
- Lends to international students without a cosigner
- Interest rate discounts for hitting certain requirements
- No prepayment penalties
- Only fixed-rate loans available
- One repayment term available
- High APR range
- Origination and late fees
- Only lends to students within 2 years of graduation from college
- 10-year repayment term
- 5% origination fee and undisclosed late fee
- Customer service available by filling out a form or phone
- $2,001 loan minimum, up to $100,000 lifetime loan limit
- 1.5% reduction in your interest rate with automatic payments, six on-time payments, and proof of graduation and employment
- Lends to students for 350 schools
- Loans are made by Bank of Lake Mills or MPOWER Financing
MPower lends to international students and doesn't require a cosigner, one of the only lenders to do both of these things.
You can get up to a 1.5% reduction on your interest rate by signing up for automatic payments, making six on-time payments, and reporting proof of graduation and employment. Each of these three requirements will qualify you for 0.5% off, or up to 1.5% total.
Watch out for: Fees. You'll pay a 5% origination fee on your student loan, which will be deducted from your loan proceeds. Additionally, if you're late on your payments, you'll pay an undisclosed fee.
Read more about MPower.
Chicago Student Loans by AM Money
- Competitive rates
- Income-based repayment option
- No credit check
- No cosigner
- No variable loans
- Only one repayment term
- 10-year standard repayment term
- Income-based repayment plan for borrowers facing financial hardship and making under a certain threshold
- $2,001 loan minimum, $50,000 loan maximum
AM Money is the only private lender on our list to offer an income-based repayment option. Income-based repayments can help lower your payment for up to three years if you are facing financial hardship, as defined by AM Money. If the calculated monthly payment in your regular plan is higher than the monthly amount calculated under IBR, then you qualify.
Watch out for: Only one repayment term. AM Money sets your repayment term at 10 years, so you won't have flexibility in deciding when you want to pay off your loans.
Prodigy Finance Student Loan
- Competitive rates
- Multiple repayment term lengths
- No cosigner needed
- No credit history needed
- High loan maximum
- Only variable loans available
- No undergraduate loans
- Only available to borrowers looking to study abroad
- Choose between seven to 20 year repayment term lengths
- Prodigy offers loans to borrowers in 18 countries
- Borrow between $15,000 up to cost of attendance
- Only graduate loans available
Prodigy offers loans to borrowers in 18 countries, and you can see if your country is eligible. Prodigy only issues loans to students studying abroad, so if you need a loan in your home country, you're out of luck.
What to watch out for: Only offers graduate loans. If you're an undergraduate student in need of a student loan, you'll need to pick another one of the lenders on our list.
Stride Funding Student Loan
- No payments when you make below a certain threshold
- No cosigner needed
- No credit check
- Hard to refinance
- One repayment term
- Five-year repayment term length
- Loan amount range $5,000 to $25,000 per year, $50,000 lifetime
Stride functions differently than the other lenders on our list because the "loan" in this case is an income-share agreement. Here's how it works: Your payments are tied to your income, and you'll pay nothing during the months when your income is below a minimum threshold. You pay a percentage of your income with rates based on what you are expected to earn.
Watch out for: You may end up overpaying compared to a standard loan. If you outearn expectations, it may cost more to use Stride because your payments are a percentage of your income. Income share agreements are also difficult to refinance.
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Federal Direct Subsidized Loan
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Federal Direct Unsubsidized Loan
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Ascent Non-Cosigned Credit-Based Loan
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Ascent Non-Cosigned Outcomes-Based Loan
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Funding U Undergraduate Student Loans
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MPower Financing Undergraduate Student Loan
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Chicago Student Loans by AM Money
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Prodigy Finance Student Loan
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Stride Funding Student Loan
Other student loans without cosigners we considered
Some more prominent lenders also offer loans without cosigners, but they generally require good credit scores, high minimum incomes, and proven credit histories to qualify. For many undergraduate students, these requirements aren't easy to reach.
These lenders include:
All of these lenders appear in our best private student loans guide because they have great rates and many options for repayment term lengths. But because they are inaccessible to many borrowers looking to get a loan without a cosigner, we chose not to include them in our best picks in this guide.
Which lender is the most trustworthy?
The Better Business Bureau, a non-profit organization focused on consumer protection and trust, measures businesses using information like their responsiveness to consumer complaints, truthfulness in advertising, and transparency about business practices. Here is each company's score:
| Lender | BBB grade |
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| N/A |
|
| A- |
|
| A+ |
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| NR |
|
| NR |
|
| NR |
|
| NR |
Most of the companies on our list are not rated by the BBB — this isn't because they are untrustworthy businesses, but instead because the BBB doesn't have enough information to give a grade. The BBB grade for the Department of Education is not applicable because the DOE is not a business.
It's important to note that a good BBB grade doesn't guarantee you'll have a good relationship with your lender. Ask family and friends about their firsthand experience with the company before signing on the dotted line, or read online customer reviews.
How did we pick the best student loan refinancing companies?
Personal Finance Insider's mission is to help you make the best, most informed decisions with your money. To do that, we combed through many student loan companies, comparing interest rates, terms, and fine print so you don't have to. We also compared our findings to other personal finance sites. We looked for several factors in determining the best student loans without cosigners, including:
- Interest rates: We looked for lenders offering competitively low interest rates, and we prioritized lenders with the lowest interest rates for both fixed and variable loans.
- No credit history required: We tried to pick lenders that didn't require a lengthy credit history to qualify.
- Variety of term lengths: We picked lenders that offered term lengths that fit many borrowers' different situations.
- No or few fees: We looked for lenders that charge minimal fees.
Frequently asked questions
Yes, you can get a student loan without a cosigner, though many private lenders do require one for students without credit histories. All the companies we've listed above don't require a cosigner. Federal unsubsidized and subsidized loans never need a credit check.
Getting approved without a cosigner usually includes factors outside of your credit score. Lenders may take into account GPA, major, projected future earning potential, and more when making approval decisions.
Take school affordability into account when applying for colleges; many state schools cost less than out-of-state schools. You might also consider starting at a community college for a couple of years to lower your overall cost of attendance.
Additionally, you may consider taking on a side job if you're able. Federal aid packages may also include grants and work study, which is money you don't need to repay.
Prioritize federal loans before looking at private student loans, as federal loans often have lower interest rates and more protections, plus direct subsidized and unsubsidized loans don't require a cosigner.
No, your parents do not have to cosign your federal direct subsidized and unsubsidized student loans, which are the federal options we have listed above. This means you will be entirely responsible to repay any money you take on.
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