How to get a student loan without a parent

How to Obtain a Student Loan Without the Help of a Parent

To get a student loan without a parent, you must be considered an independent student—or find other resources to fund your education.

Although it may be difficult to qualify, an independent student loan may not be out of reach. As long as you fill out the FAFSA, stay in touch with your school's financial aid office and research private loans, you may be able to get student loans without involving parents in the process.

How to Obtain Federal Student Loans Without Parental Consent

Always start with federal student loans before considering private loans. Both federally subsidized and unsubsidized loans have borrower protection and do not have the same credit requirements as private loans.

To apply for a federal student loan, you have to fill out the Free Application for Federal Student Aid, known as the FAFSA. Your answers to the questions in the FAFSA determine your dependency status, which affects whether you can get a student loan without a parent and how much you can borrow.

How do you know if you are a dependent student or an independent student?

If you are a dependent student, the U.S. Department of Education generally bases your financial aid on your and your parents' income, even if your parents do not contribute financially to your college education.

All graduate and professional degree students are considered independent, while undergraduate students must meet the eligibility requirements specified by the Department of Education to be considered independent.

You may be considered an independent student - and you will not need to include your parents' income details - if you meet one or more of these requirements:

• You were at least 24 years old on January 1 of the year you apply for financial aid.

• Are you married or separated?

• You are working on a master's degree or doctoral program.

• You are a veteran of the United States Armed Forces or are on active duty for purposes other than training.

• You have children or dependents who receive more than half of your support during the award year.

• Since you turned 13, your parents have died, you have been in foster care or you have been a trustee or ward of the court.

• The court has determined that you are an emancipated minor, or that someone other than your parents or your step-parent's spouse has legal custody of you.

• You are homeless or are at danger of becoming homeless.

As an independent student, how do I apply for federal student loans?

To get a federal student loan without a parent, you only need to provide financial information for yourself on the FAFSA form.

As an independent student, you will need the following papers to complete the form.

• Social security card.

• State-issued identification, such as a driver's license.

• Latest W-2 form.

• A recent federal income tax return.

• Latest bank statements.

As a dependent student, how do I apply for federal student loans?

Dependent students will need to submit the documents listed above as well as attach paperwork on their parents' income. However, if you lose these details, you still have options. While you must fill out a FAFSA form to receive federal financial aid, you may be able to apply without your parents' information. Here are your two possible options:

Request dependency override. You can ask the Department of Education to consider you an independent student based on exceptional circumstances, such as an abusive family environment. The department approves these requests on a case-by-case basis and requests documentation.

Fill out the FAFSA without your parents. If your parents are unable or unwilling to provide their information and you cannot claim the termination of dependency, you may select this option in the FAFSA: "I have information about my parent(s). Unable to provide."

In either case, contact your school's financial aid office after filing the FAFSA. The Financial Aid Office will determine your dependency status and the assistance you qualify for.

How to Obtain Private Student Loans Without Parental Permission

If federal student loans, scholarships, and grants don't cover all of your educational expenses, private student loans can be a good option to help bridge the gap. Private student loans often require borrowers to establish a credit history or add a co-signer. This makes approval more difficult, but you do have a few options.

Ask another relative to co-sign the loan

If your parents did not co-sign a private student loan, you can have another trustworthy family or friend sign the loan documentation on your behalf. Eligibility requirements vary depending on the lender and the type of loan you're looking for, but in general, a co-signer will need regular income and a good credit score to qualify.

The co-signer agrees to take over the loan payments if you fall behind, so they'll need plenty of room in their budget for this eventuality.

Find a lender that does not require a co-signature.

Some private lenders do not require a co-signature for borrowers with bad credit history. Instead, they take into account factors such as educational qualifications or potential future income.

For example, Ascent and Funding U cater to students without a co-signer. They offer private student loans based on factors such as GPA, school, program, graduation date, and major.

Increase your credit score.

Some top lenders may accept students without a co-signer if they have strong credit and a stable income. If you are new to credit or could improve your credit score, here are some steps to improve it:

Get a credit card. You may qualify for a student credit card if you have an income or someone willing to sign a card agreement. Using the card responsibly -- keeping balances low and paying on time -- will help you start building good credit. If you already have a credit card and have a good score, consider using another card to increase your credit limit while keeping your credit utilization low.

Become an authorized user. If you do not yet eligible for a credit card, think about asking a friend or family with great credit to add you as an authorized user to their account. Their positive use of credit will also be reported on your credit reports, which can help boost your credit score. Just make sure you're on top of your payments because any missed payments from you will negatively affect their score.

Add alternate data to your credit report. You can add rent bills or utility bills to your credit reports, and paying on time can increase your credit score.

Should You Get Student Loans Without Parents?

While you can get student loans without a parent, you will face additional challenges. Unless you are deemed an independent student, you may have difficulties applying for federal student loans without the help of your parents.

With private student loans, you may have to go through additional steps to qualify without a co-signer. You may also pay a higher interest rate because the loan is riskier for the lender, and you may have difficulty making payments if you have a lower income.

Deciding whether the degree you want to attend — or the school you want to attend — is worth the financial stress will depend on several factors. But if you know the program will work, it's a good idea to consider your options without involving your parents.

Bottom Line

While it may be difficult to get approved without a parent, student loans can help you fund your degree. This, in turn, can open up career and salary advancement opportunities and help you build credit.

To make the best decision for you, find out which loans you qualify for, weigh the pros and cons, and come up with a payment plan before you take out parentless student loans.