Best student loans without a co-signer in January 2022

Why federal Direct Unsubsidized and Subsidized Loans loans are best for undergraduate students without a co-signer: Federal Direct Loans come with extensive benefits and borrower protections, and they don't require a credit check.

Overview: Federal Direct Unsubsidized and Direct Subsidized Loans are offered to all students attending qualifying institutions, don't require a credit check and carry fixed interest rates that are the same for all borrowers. With Direct Subsidized Loans, the government even covers your loan interest while you're in school and during the grace period. Federal loans also come with multiple repayment and forgiveness options that private lenders don't offer.

Perks:

• Federal protections and benefits like income-driven repayment plans, Public Service Loan Forgiveness and extensive deferment and forbearance programs.
• Competitive interest rates.
• No credit check.

What to watch out for:

• Interest rates may be higher than what private lenders offer.
• Origination fees.
• May not cover the total cost of attendance.

Why federal grad PLUS loans are best for graduate students without a co-signer: While grad PLUS loans check your credit, there is no minimum credit score threshold, and these loans let you borrow up to the full cost of your education.

Overview: Grad PLUS loans are designed for graduate and professional students. Grad PLUS loans have higher interest rates than Direct Unsubsidized Loans, but they also have higher loan limits — up to the full cost of your education. A co-signer is not required, although you may need an endorser if you have an adverse credit history. Like Direct Unsubsidized and Subsidized Loans, these loans give you access to income-driven repayment plans, extensive forbearance programs and more.

Perks:

• Borrow up to the full cost of attendance, minus other financial assistance you receive.
• Access to federal protections and benefits.
• No minimum credit score requirement.

What to watch out for:

• Requires a credit check.
• Higher interest rates than those of other federal loans.
• Steep origination fees.

Why Funding U student loans are best for borrowers with bad or no credit without a co-signer: Instead of credit history, Funding U looks at academic merit and factors like projected salary after graduation to approve borrowers.

Overview: Funding U is a nontraditional lender that lends directly to students and doesn't consider credit scores. In order to get approved, students must be a U.S. citizen, permanent resident or DACA recipient enrolled full time in a bachelor's degree program at an eligible university. Borrowers must also be over the age of 18 and meet a minimum GPA requirement. Currently, Funding U lends to borrowers in only 33 states, but that list could grow over time.

Perks:

• Eligibility based on academics, college statistics and other merit-based factors.
• No origination fees.
• Interest rate discount for borrowers who choose to make interest payments during school.

What to watch out for:

• Available in only 33 states.
• Not available to graduate students.
• Limited loan amounts and repayment options.

Why Ascent student loans are best for students pursuing competitive careers without a co-signer: Ascent's "outcomes-based" loans consider borrowers' future income and career potential, making it easier for borrowers to qualify without a co-signer.

Overview: Ascent offers student loans for undergraduate, graduate, international and DACA students, but it stands out for its non-co-signed options for undergraduates. There are two options: credit-based and outcomes-based. To qualify for the credit-based loan without a co-signer, borrowers must have more than two years of credit history and meet minimum credit score requirements. For the outcomes-based loan, borrowers are evaluated based on school, program, GPA and more. Both loans have multiple repayment options and large loan amounts.

Perks:

• One percent cash back graduation reward and up to $525 referral reward for each person referred.
• Multiple types of loans for undergraduates without co-signers.
• Hardship forbearance option for up to 24 months.

What to watch out for:

• Outcomes-based loans not available to freshmen or sophomores.
• High rate caps.
• Annual income of $24,000 required for borrowers with more than two years of credit history.

Why A.M. Money student loans are best for borrowers with a high GPA without a co-signer: A.M. Money considers borrows' GPA and academic achievement above all else. Credit scores, incomes and debt-to-income ratios aren't eligibility factors.

Overview: Chicago Student Loans by A.M. Money aims to "shift the current financial landscape by enabling students from all backgrounds to graduate from college and build wealth." To do so, it focuses on academic achievements when approving student loans. These loans are available only to students attending select schools in the Midwest, but eligible students can benefit from perks like an income-driven repayment plan and free financial coaching.

Perks:

• Partnership with organizations offering financial coaching, employment assistance and academic counseling.
• Income-based repayment plan option.
• Merit-based loans.

What to watch out for:

• Borrowers must attend one of 23 eligible schools in the Midwest.
• Origination fee.
• Interest accrues immediately.

Why Earnest student loans are best for borrowers with minimal borrowing needs without a co-signer: Earnest caters to borrowers who don't need to borrow much for college, with loan amounts as low as $1,000. And while co-signers are recommended for undergraduate students, they're not required.

Overview: Earnest doesn't require co-signers for its undergraduate student loans, a rarity among private student loan lenders. Earnest does require a minimum credit score of 650 to qualify, so it's best for borrowers who already have an established credit history. Earnest also offers a range of repayment options, including the option to skip a payment every 12 months, and a nine-month grace period.

Perks:

• Exceptionally low interest rates for borrowers with good credit.
• Ability to pay monthly or every two weeks.
• Skip one payment every 12 months if loans are in good standing.

What to watch out for:

• Loans aren't available in Nevada.
• Minimum credit score of 650 and minimum annual income of $35,000 required.
• Freshmen, sophomores and juniors must be enrolled full time.

Why Education Loan Finance student loans are best for borrowers with a solid financial history without a co-signer: Education Loan Finance has a relatively high minimum annual income requirement of $35,000, but borrowers who meet this and other eligibility requirements can qualify for inexpensive loans without a co-signer.

Overview: Education Loan Finance's undergraduate loans come with low interest rates and a wide range of loan amounts, making it the ideal fit for borrowers who qualify. Education Loan Finance does have stricter eligibility requirements than other lenders, with a minimum credit score of 680 and a minimum income of $35,000, but it doesn't require undergraduates to add a co-signer if they meet these requirements on their own.

Perks:

• Student loan advisor assigned to all applicants.
• Low minimum loan amount.
• Several repayment options while in school.

What to watch out for:

• No discounts.
• High minimum credit score requirement.
• Minimum credit history of 36 months.

Why SoFi student loans are best for returning borrowers without a co-signer: Borrowers who have taken out a loan with SoFi in the past can benefit in several ways by returning to SoFi. Previous private student loan borrowers can "fast track" applications for future funds, and borrowers who have a different type of loan with the company may be eligible for a 0.125 percent discount on their new student loan.

Overview: SoFi is well known for its tools, resources and personalized financial help. It offers private student loans for creditworthy undergraduate and graduate students who are in satisfactory academic and financial standing. Among its perks is a unique unemployment protection option, which suspends your monthly loan payments while you're searching for a job — for a total period of up to 12 months.

Perks:

• No fees.
• Member benefits and discounts.
• Four payment options while enrolled in school.

What to watch out for:

• Borrowers must demonstrate "sufficient income."
• High rate caps.
• Vague eligibility requirements.