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Anonymous
Anonymous asked in Education & ReferenceFinancial Aid · 2 months ago

How do so many people get student loans without parents co-signing?

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  • 2 months ago
    Favourite answer

    The Federal Student Loan program requires no parental signature for subsidized and unsubsidized loans - these loans are based upon the student's eligibility for aid and cost of attendance at the school they attend.  PRIVATE loans usually require a co-signer, as they come from lending institutions, NOT the federal government.

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  • nancy
    Lv 7
    2 months ago

    It depends on the type of loan. Federal Direct loans (i.e. FAFSA loans) are not based on credit and do not require a co-signer, so most students are eligible for those. The amount you can borrow is quite limited, though--only $5,500 for a first year dependent student ( a bit more for independents or students in higher grades.) Private student loans are based on the borrower's credit, so most younger students do need a co-signer because they don't have the income or credit history to meet lenders' requirements. But, older students who have been working and paying bills for awhile may be able to borrow without a co-signer, particularly if the loan is small.

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