Do I Need a Cosigner for a Private Student Loan?

Do I Need a Cosigner for a Private Student Loan?


Hey, everyone, if you’re
getting ready to apply for a private student loan, you’ve probably heard
that you need something called a cosigner. Let me explain what that’s all about. If you’re someone who’s
just starting college, then you probably have
little to no credit history. Your credit history is a record of how you have paid back past debts. So it’s very common that
many college age people haven’t yet had any debts to repay. But lenders want to make sure
they’re going to get paid back and they’re about to lend to someone with little to no financial reputation, so a cosigner is a credit-worthy person who agrees to share
responsibility of the loan. Whether you pay it on
time or you miss payments, it will affect both credit scores. It can feel like a big ask, but most private college student
loans include a cosigner, so it’s pretty common. So who should you have as your cosigner? Well, many people ask
their parents, guardians, but you can also ask grandparents, aunts, uncles, older siblings, and
other responsible adults. Here’s a good way to think of it: would you invite them to your graduation? Then they’re probably
someone who has an interest in seeing you succeed. And having a cosigner
with a better credit score may also help you qualify
for a better interest rate in many cases. So when you find someone
who will be a great fit and you’re ready to pop the question, (bell chimes) what do you need to do? Make sure you have all
your information together. That means, why you’re applying, where you’re applying, and
how much you need to borrow. And why you need them as a cosigner. Once they say yes, you should
both know what’s going on. After all, it’s their financial life, too. And if you want them to
be sure that they qualify, we’ve linked some resources below, including a tool that will tell you if your cosigner is pre-qualified. Hopefully that answers
and questions you had. If you want to learn more about cosigners and student loans in general, you can check out the resource center over at CollegeAveStudentLoans.com. (upbeat music)

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