Student Loan Cosigner Details

If you need a student loan to help you pay for college, you can opt for either federal or private education loans. Federal loans don’t require a credit check or income verification. Private student loans, however, do. If you don’t meet the lender’s requirements, you may need a cosigner to help you qualify for the loan.

Cosigner Qualifications

A student loan cosigner must be able to demonstrate to the lender that he is financially capable of paying off your student loan if you cannot. Thus, your lender will want proof that the cosigner has a steady income source. In addition, the lender will conduct a credit check on your cosigner. This helps the lender determine if the cosigner is reliable. It is imperative that your cosigner have a positive credit history, as this has a significant impact on whether your lender will allow him to guarantee your student loan.

Repayment and Cosigners

Should you fail to honor your obligation to repay your student loan in a timely manner, the lender may pursue your cosigner for repayment. Even if you make up for student loan payments you missed, the missed loan payments will appear on your cosigner’s credit report and damage his credit rating. If you stop paying on your student loan altogether, the loan will go into default. When this happens, the lender may sue either you or your cosigner for the loan balance.

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