The necessities of modern man have multiplied, as compared to the good old times. Today the challenging and competitive environment has subjected the modern man to strive day and night for maintaining the standards and fulfilling the demands of the modern world. Life has become too fatiguing and hectic. Moreover, this increased challenge for the survival has given rise to an individualistic culture, in which, unlike the collective and nuclear family system, everyone owes his own responsibility to fulfill all the needs and demands, to sustain a comfortable living.
In this scenario, a person cherishing a lavishing career may not be in any serious trouble, but for the students it is hard to meet both the ends. The situation has become even worse as the tuition fees and other academic charges are undergoing a sharp increase. In this scenario the only option left to meet all the financial needs, is to apply for a student loan. Getting the desired loan will ease the student in paying all his duties, and concentrating on his studies without the nightmares of being bankrupt. But many students are reluctant to get a loan because of the involvement of a cosigner.
What is the role of cosigner?
As the name depicts, the cosigner, signs the loan agreement, in addition to the borrower. The cosigner is actually providing a guarantee that the borrower will take into account all the legal and operational obligations of the loan and will return the loan on time. If a person, especially a student, applies for the loan, it is not necessary that they may have the availability of a cosigner.
Why a loan with the cosigner is problematic?
If we look at the process of lending and borrowing, we will come to know, a number of interests of both the parties. The borrower is in need of funds, which the lender is providing him or her. The borrower on one hand, needs a steady supply of funds, while the lender wants that the return of the funds are assured. In this case, most of the loans, especially the student loans are driven through a cosigner.
Most of the students are studying away from their hometown or at a place which is not familiar to the student. Being at that place, getting a cosigner may be a bit problematic. Moreover, even in hometown , it is not necessary that the availability of the cosigner is easy.
Loan without a cosigner- some important facts
Getting a student loan with a cosigner may facilitate you in getting the process expediated, and getting a number of different and diverse agencies of a student loan. Yet, if you want a student loan without a cosigner , there a number of good options.
Some of the critical facts in this regard include:
- When applying for a student loan without cosigner , or alternatively an independent loan, one of the most critical elements is the credit history. Now you may be thinking that what is it? It is actually a measurement of the credit worthiness of a student. It establishes a past record of all the credit transactions of the student. Based on that past record, the credit rating of the student is calculated. Every past credit interaction or transaction is scored within a specified scoring pattern. For every credit worthy behavior like on time delivery of the payment for credit transactions or returning of the loan, the student gets a higher score. The overall score determines the decision of the loan providing agency that the loan will be granted or not.
- Another major option for using the opportunity of getting a loan is to avail the governmental student loan schemes. These schemes are usually free of any obligation of the cosigner or any other guarantee. These federal loans are usually based on a number of variable functions and factors like the needs of the student. The credit rating or the availability of the cosigner is not a determinant in cases of the government funded student loans. Examples of theses loans include the Perkins loan and the Stafford loans. However the availability of these loans may depend upon the particular budget of the government, allocated for the purpose of the student loan.
Student loans have now become a necessity for students, studying all around the globe. Although the presence of the cosigner can easily make the student cherish a loan , but there are also the options available for getting the loan without a cosigner.