How to get a student loan without your parents

An estimated 49% of college students are independent students, according to the Lumina Foundation. Independent students generally do not have financial support from parents, and it can be harder to fund the cost of earning a degree as a result.

The good news is that there are federal and private student loan options for independent students. This guide explains how to get independent student loans to afford your education.

What are independent student loans?

Independent student loans are loans available to students who generally do not have parental support or assistance.

The Department of Education (ED) defines an independent student as someone who meets one of the following criteria:

• Was born prior to Jan. 1, 2001 (for the 2024-25 academic year)
• Is currently married and not separated
• Is a graduate or professional student
• Is a veteran or a member of the U.S. armed forces
• Is an orphan, ward of the court, current or former foster youth, or in a legal guardianship now or in the past
• Has legal dependents other than a spouse
• Is an emancipated minor
• Is unaccompanied and homeless, or at risk of homelessness

Your status as an independent student is important when you complete the Free Application for Federal Student Aid, or FAFSA.

That's because independent students have higher borrowing limits under the Direct Loan program offered by the Department of Education. This means they can qualify for more in Direct Subsidized and Direct Unsubsidized Loans. However, they can't rely on their parents to take out parent PLUS loans to fill in any gaps in funding that exist once their loan limits have been reached.

Unfortunately, it can be more difficult for independent students to access private student loans. These lenders evaluate financial credentials and typically expect proof of income and strong credit. Many independent students don't meet these criteria, and without a parent cosigner, options for private debt can be more limited.

Types of independent student loans

Independent students can access many of the same types of financing as dependent students. However, there are important differences in how much they can borrow and how accessible these loans are.

Federal student loans

Federal student loans are typically the best option for independent students, who have two choices of loans from the Department of Education. These loans are available regardless of credit or income, and no cosigner is required. They also offer generous benefits to borrowers, including income-driven repayment plans and options for loan forgiveness.

Federal student loans available to independent students include:

• Direct Subsidized Loans: These are available to undergraduate students with demonstrated financial need. Interest is subsidized while in school and during periods of deferment, making the loans more affordable.
• Direct Unsubsidized Loans: Undergraduate and graduate students can borrow Direct Unsubsidized Loans without having to demonstrate financial need. While interest is not subsidized, loans still come with affordable fixed rates.

The good news is that independent students have higher borrowing limits for these federal student loans compared to dependent students.

Unfortunately, independent students typically will not have the option of parent PLUS loans to cover gaps in their educational funding. As a result, PLUS loans will be off the table for undergrads. However, independent graduate students may be able to get graduate PLUS loans if they pass the credit check.

Private student loans

Independent students may also be able to qualify for private student loans from banks, credit unions, and online lenders. Unfortunately, these loans do not offer the same advantages as federal loans - there's no possibility of loan forgiveness, and much less flexibility in repayment options. Most private lenders also have strict qualifying requirements regarding income and credit, which independent students may not be able to meet on their own.

Private student loan lenders typically allow cosigners. However, if independent students cannot ask their parents, they may need to find another relative or loved one to agree to share responsibility for their debt. Alternatively, they may have to turn to one of the few private student loan lenders that look beyond credit and income when determining eligibility.

“One of the most effective ways to help students and families obtain loans is by providing more equitable options,” said Ken Ruggiero, president and CEO of Ascent, which offers outcomes-based loans that students can qualify for based on academic performance while in school and future earnings potential. “This approach incentivizes students to thrive in college, and Ascent supports them with college and career success coaching through AscentUP.”

Current private student loan rates

Best independent student loans

Ascent: Best for no-cosigner loans

Methodology

We evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Eligibility criteria for independent student loans

You must meet certain eligibility requirements for student loans. These include the following for federal loans:

• Proof you qualify as an independent student according to the Department of Education
• Proof of U.S. citizenship or eligible noncitizen status
• Have a valid Social Security number
• Demonstrated financial need for Direct Subsidized Loans
• Enrollment in an eligible degree-granting program (or acceptance for enrollment)
• Proof you're qualified to receive a college or career school education

If you wish to qualify for a private student loan, you will need to meet your specific lender's requirements. These vary by lender, but they usually include:

• Enrollment in an eligible program
• Being a U.S. citizen or eligible noncitizen
• Meeting credit score requirements
• Providing proof of income sufficient to repay the loan

Some private lenders look beyond these and will work with independent students to borrow based on factors like GPA and school program.

How to apply for independent student loans

To apply for independent student loans from the Department of Education:

1. Request a Federal Student Aid (FSA) ID.
2. Submit the FAFSA online, providing your information and selecting the option to file as an independent student. You may also need to provide your spouse's financial details if you are married.
3. Review your financial aid award from your school and select the loans you want to accept.
4. Complete entrance counseling and sign a Master Promissory Note.

To apply for private student loans, you must complete the process required by your lender. Here are the steps you can expect to take:

1. Research and find private student loan lenders that offer loans to independent students without a cosigner, or find someone to cosign for you if your parents can't or won't.
2. Obtain quotes from multiple private student loan lenders to find the lowest rates you're eligible for.
3. Apply online with your chosen lender, providing the required financial details and information about your school and program.
4. Undergo a credit check.
5. Select your loan terms from those offered to you.
6. Sign your loan documents.

Pros and cons of independent student loans

Here are some of the biggest benefits and disadvantages of applying for independent student loans.

Independent student loans FAQ

What are the best independent student loans available?

The best independent student loans are federal student loans. It's a good idea to start with Direct Subsidized Loans from the Department of Education, as these loans are available to qualifying independent students regardless of credit or income. The ED also subsidizes interest on these loans while you are in school and while payments are deferred.

Can independent student loans be forgiven?

If you take out federal student loans as an independent student, you can qualify for loan forgiveness under Public Service Loan Forgiveness or income-driven forgiveness. No private student loans are eligible for forgiveness.

What are the repayment options for independent student loans?

Repayment options for independent student loans vary, depending on whether you have private or federal student loans. With federal loans, you can choose from income-driven repayment plans, as well as standard and graduated plans. Private student loans may offer full, interest-only, or deferred payment plans.

How can I improve my chances of getting approved for an independent student loan?

You should complete the FAFSA and max out federal student loans available to independent students. If you need to turn to private loans, see if you can find a cosigner (it doesn't have to be a parent), or look for a lender willing to provide funds based on academic performance or other factors.