www.StudentFinanceDomain.com private student loan consolidation
private loan consolidation
Money Management

Student Banking

Credit Cards

Spending and Protecting

Paying for College

Financial Aid

Student Loans
Student Loan Comparison Student Loan Repayment Options Undergraduate Loans Graduate and Continuing Ed Business School Loans Medical School Loans Nursing School Loans Law School Loans Loan Consolidation
Non-Loan Options

International Students

The Importance of a Student Loan Cosigner

private education loan consolidation

Cosigner Loans Help You Pay for College

When you apply for financial aid you should be able to get almost any type of federal student loan without the help of a cosigner, including a Subsidized Stafford Loan, Unsubsidized Stafford Loan or Federal Perkins Loan. But not all student loans can be awarded to you without the help of a cosigner.

If you are applying for a private college student loan then you will need a cosigner because it is not likely that you have an established credit score or report.

Consolidate your federal loans to lower your monthly payments
Credit cards - the financial tool for your back pocket
It is never too early to begin investing, with time on your side even a little investment can go a long way

What is a student loan cosigner?

A cosigner is someone (typically a parent) who extends his or her credit to a student so they can acquire a student loan. A cosigner jointly signs a promissory note with a student for a student loan, and he or she is responsible for repayment of the cosigner's loan if the primary student borrow fails to make payments.

What is a credit-worthy cosigner?

Since many college students enter college without a credit score and credit report, they may need a credit-worthy cosigner to help them with their payments. A credit-worthy cosigner is someone that has a strong credit score (preferable above 750

Other characteristics of a credit-worthy cosigner include:

  • Having at least 27 months of credit history
  • Having proof of satisfactory income for the past 2 years
  • Is a U.S. citizen or permanent resident

Who can be a cosigner?

Any relative, spouse or friend can be a student loans cosigner as long as they are an adult and pass the above minimum requirements.

How do you ask someone to be your cosigner?

You might be intimidated or embarrassed to ask someone to be your cosigner, but there are literally millions of other students who are in your same situation.

Besides promising to make your payments on time, you can give them a few benefits of cosigning on your loan, such as:

  • They won't have to make payments as long as you pay every month
  • They can released from their cosigning responsibilities if you establish a good credit score and make on-time payments for at least 36-48 months

What are the benefits of having a cosigner?

Besides receiving their good credit history, some other benefits of having a cosigner are:

  • You can get lower interest rates on other types of loans or credit cards
  • Cosigners can help build your credit history

It is important to convey to your cosigner that you can be trusted with your payments. Remember that they are doing you a favor by extending their good credit history to you, so be responsible and don't miss any payments.

Featured Articles
College is expensive. Learn how Student loans can help you pay for your education. Read More...
Thinking of getting a student credit card? Find out which card is the right one for you. Read More...
There are many types of student loans. Learn how a private student loan can benefit you. Read More...
Student Banking | Credit Cards | Investing | Financial Aid | Student Loans
Home | Site Map | | Privacy Policy | Terms & Conditions

Copyright © 2008-2012 Junior Media, LLC. All Rights Reserved.