No cosigner? No Problem.
When you first start applying for federal student aid you may find out that you need bad credit or a no cosigner student loan. The perfect replacement for this is the College Federal Work-Study (FWS) Program. It’s somewhat of an alternative to student loans and is guaranteed once your accepted into the FWS program. This program is really considered to be federal student aid, as the money that you receive is used to pay for your education. If you qualify for FWS, then you don’t need no-cosigner student loans anymore because you will pay your college tuition through the FWS. This would eb more ideal because upon graduation you would have no student loans to pay off like 90% of other students. But not everyone qualifies. Let’s zoom in and take a closer look at the FWS program and see if you qualify.
The Federal Work-Study (FWS) Program is made available to all grad and under graduate students, whether or not they are full time or part time students, and if they have a financial need. Generally speaking, if you qualify for other federal grants and loans, you could also qualify for this program.
The FWS program typically means that you will work part-time at a job provided by the University either at the school or in the community. Sorry, full time employment is not allowed, and the type of work that you need to do will ideally be directly related to your declared degree program. These jobs may be on your campus or off it. Additionally, the FWS Program is only available through schools that opt-in to participate in the program.
Often, you do not go ‘job hunting’ for a FWS job. Instead, the jobs are assigned to you – typically through the financial aid office. When you participate in the Federal Work-Study (FWS) Program, you will be paid at least the minimum wage of your state. Undergraduate students are usually paid by the hour, and graduate students are either paid a set salary or by the hour.
When you are accepted into the FWS program, you will be told what your award amount is. You cannot work hours that would exceed the amount of your award money, in terms of your salary. Furthermore, while your class schedule is considered, your academic progress also matters. If your grades start slipping, your school may decide to lower your award amount, or cut your work hours until your grades improve. This is not the case if you had a no cosigner student loan program. Lower grades will not affect your loan status.
When it comes to the Federal Work-Study (FWS) Program, you don’t have to worry so much about the number of jobs that are available, as you do about the amount of money that your school has received to cover the program. If there are funds to pay you, the school will find or create work for you either at the school, or with a non-profit agency in the community.
A FWS; a sort of alternative guaranteed student loan, is a great first option to look at for no cosigner student loans, and you won’t have any student loans to pay off upon graduation like most do. If you don’t qualify for a Federal Work Study Program and you have bad credit, then you may be in the same boat as many other students and have no choice but to go with bad credit no cosigner student loans.