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 more and more students spend more time thinking about raising the money needed than they do concentrating on their studies. If this were not bad enough all too many students discover that once they have left college they are saddled with so much loan debt that it simply drags them down and will take years to repay. Now, if this paints a grim picture then for far too many students the problem of funding a college education is magnified by the requirement to raise the money needed without having a cosigner to their loans.
College funding these days is not simply a matter of turning to one single source of finance for the majority of students but is a matter of building a portfolio of funds from a variety of different sources.
The first port of call for all students should be to look for grants and scholarships. Many students simply ignore this source of essentially free money altogether and yet it is surprising just how many grants and scholarships are on offer these days. In a lot of instances of course the sums of money available are relatively small but even so can be extremely helpful as a part of your total funding plan.
The next source of funding ought to be federal loans through schemes like Perkins and Stafford 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 hardest loans to obtain and need students to demonstrate financial need.
Sadly at this point in spite of the fact that you will have begun to create your portfolio it is unlikely that it will give you sufficient funds and you will now need to start casting your net wider and will have two routes to follow.
If you can get the assistance and support of a guardian or parent 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 conditional upon the guardian or parent having a reasonable credit history but the requirements are not as stringent as those which would be applied by a private lender.
If you do not have a guardian or parent to whom you can turn or simply decide to go it alone then you will need to find a loan from a private lender and just how easy that will be will depend very much on your personal credit history. In almost all cases lenders will be happy to offer you a loan if 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 decision or have a poor credit history. However, with more and more people with a poor credit history nowadays there is also a growing number of lenders who will offer loans without the requirement for a cosigner and so it is simply a case of shopping around.
A bad credit loan without a need for a cosigner will of course be more expensive than a normal good credit loan although if you take your time and shop around with care you will find a loan at a fair rather than exorbitant interest rate.