Who is a Student Loan Co-Signer?

A cosigner is creditworthy person who consents to fulfill the education loan repayment responsibility if the principal borrower—the student fails to complete it. Many lenders require a cosigner when it comes to abroad education loans, particularly for those students who do not have a solid credit history. But what if you are someone who requires a student loan but lack a cosigner? Well, don’t worry; there are lenders in the market who provide student loan without cosigner.

Why Do Lenders Require a Cosigner?

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  Credit Risk Mitigation: Students are considered high-risk borrowers by lenders as they lack a credit history. There is less risk if the cosigner has a solid credit history.

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  Lower Interest Rates: Cosigner loans typically have lower interest rates since the lender bears less risk.

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  Loan Approval: If the borrower has no past credit history, a cosigner might improve the chances of the loan being approved.

Typically, the cosigner is a parent, guardian, or close relative with a strong credit history and a decent monthly income. 

Eligibility Criteria for Student Loans Without a Cosigner

Adding a cosigner to an education loan adds an extra layer of risk protection for the lender. However securing an education loan without a cosigner is quite challenging, but it is possible. Interested borrowers must follow the following criteria for eligibility:

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  Strong CIBIL Score: A good credit score (usually 750+) is often required to qualify for a loan without a cosigner.

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  Proof of Income: Borrowers have to provide enough evidence of income or a source of funds to show the lender that they can repay the loan.

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  Admittance to an Accredited University: The student must have an offer letter from an accredited university abroad to assure lenders that the student will complete their program.

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  Decent Academic Record: The student must have a decent past academic record and fulfill any minimum percentage/GPA requirements of the lenders (if any). 

Suggested Read: Differences Between Co-Borrower and Co-Signer in Education Loans

Top Student Loans with Cosigner

Many lenders provide student loans with cosigners, and the following are some of the best options available for Indian students planning to study abroad.

These loans typically require a cosigner, and the interest rates depend on factors such as the loan amount, the type of course, and the creditworthiness of the cosigner.

Top Student Loans Without Cosigner

For students who do not have a cosigner, the following are some of the top lenders offering student loans with no cosigner requirements.

These lenders focus on students who have an established credit score or those who demonstrate strong academic performance. Rates may vary depending on the student's academic record, chosen university, and the country in which they are studying. 

How to Apply for Student Loans with a Cosigner?

Applying for a student loan, whether with or without a cosigner, typically involves the following steps:

Step 1: Check loan eligibility:

The first step towards getting an education loan is checking whether you are eligible. You can check your loan eligibility now in just two minutes with GyanDhan’s free eligibility tool. 

Step 2: Gather required documents:

Once you have checked your loan eligibility, make sure that you have all the necessary documents ready, such as:

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  Proof of identity (passport, Aadhar card)
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  Admission letter from the university
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  Academic transcripts
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  Proof of income (if applicable)
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  Credit score report

Step 3: Complete and submit the application form:

Complete the loan application with your financial status, academic history, and personal data. If you are applying with a cosigner, the cosigner must also submit their information. 

Step 5: Loan approval and disbursement:

Once your loan is approved, the lender will disburse the funds to the university or in your account, depending on the loan terms.

While getting a student loan without a cosigner can be difficult, Indian students who have a solid financial history, a high credit score, and well-defined repayment plans can do so. Financial independence can be achieved by looking into no-cosigner solutions, even though cosigner loans are more popular and have lower interest rates. Your aspirations for an international education can come true if you do your homework, comprehend the requirements, and get the required paperwork ready.

Remember that every lender has different terms and offerings, so it's important to carefully evaluate them to discover the ideal one for you. To help you make an informed decision, GyanDhan simplifies the entire loan application process, from selecting the best lender to the disbursement of the final amount. We connect you with the best lenders and help you cross any possible obstacles. Check your loan eligibility now to start today!

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