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Sourcing College Money Without The Need For A Cosigner (coffee futures) |
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Written by Webmaster
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Tuesday, 06 May 2008 |
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By Donald Saunders
As education costs continue to rise from one year to the next it is becoming increasingly difficult to obtain the funds necessary for college and a lot of students spend more time worrying about raising the funds needed than they do working at their studies. If this were not bad enough far too many students discover that once they have graduated they are saddled with so much loan debt that it simply drags them down and will probably take years to pay off. If this seems to be a grim picture then for far too many students the problem of funding a college education is compounded by a need to raise the necessary money without having a cosigner to their loan applications.
College funding today is not simply a matter of turning to one single source of finance for most students but is a matter of creating a portfolio of funds from a variety of different sources.
The first port of call for all students should be to look for scholarships and grants. Many students ignore this source of effectively free money altogether and yet it is surprising just how many scholarships and grants
are available today. In most cases of course the amounts of money available are relatively small but even so can be extremely helpful as one part of your overall funding plan.
The next port of call should be federal loans through schemes like Stafford and Perkins loans which are offered as both subsidized and unsubsidized loans. Perkins loans especially useful because of their relatively low interest rate but are also the most difficult loans to get and require a student to demonstrate financial hardship.
Unhappily at this point although you will have begun to create your portfolio it is unlikely that it will provide you with sufficient funds and you will now have to start casting your net wider and will have two paths to follow.
If you are fortunate enough to have the help and support of a parent or guardian then they may apply for a federal student PLUS loan to cover the shortfall between the money you have been able to obtain yourself and the total cost of attending college. Student PLUS loans are subject to your guardian or parent having a reasonable credit history but the requirements are less stringent than those applied by private lenders.
If you have not got a guardian or parent to whom you can turn or decide to go it alone then you will have to seek a loan from a private lender and just how easy that will be will depend to a large degree on your own credit history. In the majority of cases lenders will be happy to grant you a loan as long as you have a good credit history and will require you to have a cosigner if you have no credit history against which they can make their lending decision or have a poor credit history. However, with more and more people with a bad credit history today there is also a rising number of lenders who will grant loans without the need for a cosigner and so it is simply a question of shopping around.
A poor credit loan with no need for a cosigner will naturally be more expensive than a normal good credit loan but if you take your time and shop around with care you will obtain a loan at a reasonable rather than extortionate interest rate.
TheStudentLoansCenter.com provides information on all aspects of college financing including student loans for people with bad credit
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Last Updated ( Tuesday, 06 May 2008 )
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