Qualifying for a loan as a student can be challenging. A cosigner can make getting a loan easier. So, let’s go over how to find a cosigner and what to consider.
A cosigner is someone who agrees to take responsibility for your loan if you can’t make your payments.
If you’re having a hard time funding your education and decide to seek a cosigner, here’s what you should keep in mind.
A lender will want you to have a cosigner with a good income, a credit history, low debt and a good credit rating.
If you’re applying for a loan in the U.S., some lenders may also require your cosigner to be a U.S. resident who’s lived in the U.S. for the past two years.
All these attributes help a lender feel confident you can repay your loan.
So, who should you ask to be a cosigner? Well, just about anyone can be a cosigner – but you want someone you can trust and who trusts you.
Usually that’s a family member. But it could also be a mentor or someone to whom you’re particularly close. This person needs to be ready and able to step up for you financially in the event you can’t make your payments.
Asking someone to be a cosigner to a loan is a big ask. So, be ready to show your plan for paying back the loan.
Keep in mind, a cosigner will be impacted as if the debt is theirs, even if you’re making the payments.
Even if you do find a cosigner, a lender may still deny your application. If that happens, the lender must give you an explanation. That will help you figure out what to do if you want to try again.
Finally, if you can’t find a cosigner or just want to maintain your financial independence, there are no-cosigner student loan options. Check out our loan comparison tool to find a loan that works for you.
Funding your education can be challenging. But there are options that enable you to fund your education and reach your dream career.
