02.23.10 | Checklist for using a cosigner on your private student loan
Many prospective undergrads have either a poor credit score or not enough credit history to receive a loan. So unless you’ve recently won the lottery, odds are you are going to need a private student loan cosigner.
What is a cosigner? Basically a person who agrees to take responsibility for the debt incurred from a loan if the primary borrower (you) is unable to pay. There are many benefits to using a private student loan cosigner, including the fact it can make it easier to be approved for a loan and could allow for a smaller interest rate.
In many cases, the obvious choice of a cosigner will be a parent or legal guardian. If you elect to have someone else be your cosigner, say, a grandparent or another trusted adult, here are some things you need to know.
What is this person’s credit score? It won’t do you very much good to find someone to cosign your loan if his or her credit rating isn’t much better than your own. Make sure the person’s credit history is in good standing.
How much do you trust this person? Does he or she have difficulty paying for a mortgage, or making car payments? Do they receive a stable paycheck or have a healthy savings? These are important questions as they will determine how capable the potential cosigner will be in the event you aren’t able to pay back your loan.
How much does this person trust you? Asking someone to cosign your loan with you is a pretty big favor. Make sure they are aware of the potential cost of the debt, and show them you are financially responsible. Be sure to let them know that while they may not use the line of credit from your student loan, their credit score can still be affected.
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Honestly, i would not trust my cosinger if it's not my parents. But can cosinger be your parents? or it must be someone that doesn't relate to you
March 21st, 2010 | #
Very helpful info.
March 20th, 2010 | #
very interesting
March 18th, 2010 | #
Great information and also really helpful.
March 14th, 2010 | #
Good Stuff very helpfulDan
March 10th, 2010 | #
Really good. Thanks for the information. Gone to be helpful for people.
March 9th, 2010 | #
I rather be in charged instead of depending on parents.
March 9th, 2010 | #
ver very helpful
March 8th, 2010 | #
This is great information. Additional criteria for a cosigner needs to be added to this information base for young students.
March 5th, 2010 | #
I feel like I should be the one to sign for everything i need I shouldnt have to depend on my parents to cosign for me for anything after I leave high school i should be responsible for my own college funds
March 4th, 2010 | #
oh the joys of cosigning
March 3rd, 2010 | #
Helpful info
March 3rd, 2010 | #
Helpful and informative!
March 3rd, 2010 | #
My dad does not have very good credit and I don't know who else to have sign for me. Thanks for the nice infformation.
March 3rd, 2010 | #
I think cosigners should be your parents as well.
March 2nd, 2010 | #
If your parents are not able to cosign for you it is very hard to find someone who will.
March 2nd, 2010 | #
This is really good info for a high school senior such as myself, thank you.
March 2nd, 2010 | #
my mom has always been my cosigner but if ever that changes this is very helpful
February 26th, 2010 | #
is anybody else nervous about college besides me??????
February 26th, 2010 | #
it can be hard to find a good cosigner if your parents dont have good enough credit to cosign for you, if that were to happen than you need to have a plan B.
February 26th, 2010 | #
I think that the cosigner usually should be your parent
February 25th, 2010 | #
This is very tricky, since in some way the cosigner has to accept all the responsibility if you are not able to carry-on with the payment yourself.
February 24th, 2010 | #
very helpful.
February 24th, 2010 | #
all you information is really good and give us a head up on what is after highschool
February 24th, 2010 | #