Choosing the right cosigner for your student loan is crucial, especially if you’re looking to increase your approval chances and get the best possible interest rate. Whether you’re trying to learn about cosigner requirements or need tips on how to ask someone to cosign your loan, this blog will help you better understand your options.
Who Can Be a Cosigner on a Student Loan?
Most students immediately think of their parents when looking for a cosigner. But there are some scenarios where a parent isn’t in a position to cosign. If that’s the case, you’re not out of luck. Almost any creditworthy adult can be a student loan cosigner.
Here are some of your options:
- Parents: Any parent, step-parent, or legal guardian
- Other Family Members: Grandparents, aunts, uncles, siblings over the age of 18, or even a spouse
- Family Friends: Any trusted non-relative adult who wants to see you succeed
- Mentors: Advisors or other adult individuals you know in a professional or educational setting
Avoid Risky Online Cosigner Sites
Keep in mind, your cosigner should always be someone you know personally and trust. Websites and services that claim they can match you with a qualified cosigner are extremely risky, and may even involve fraud.
It’s best to ask a close, trusted individual adult with whom you have an established relationship.
Cosigner Qualifications
The biggest thing to consider before you ask someone to cosign your loan is whether they’re eligible. Specific cosigner requirements may differ between lenders, but are generally similar overall.
Depending on the relationship you have with them, you may not know the specifics of a potential cosigner’s financial history. But you can still check that they meet some overall requirements.
- Age: Cosigners need to be adults – usually at least 18 years old, though the exact age can vary depending on the lender or state
- Citizenship: Most lenders require cosigners to be U.S. citizens or permanent residents
- Stable Income: Cosigners should have a job that provides a stable source of income, they’ll need to prove this during the application process
Beyond having a stable income, a cosigner should be creditworthy. They’ll likely need to show a history of on-time payments with no recent bankruptcies or debts sent to collections.
Credit score requirements will vary by lender, but a cosigner should fall in one of the following ranges:
- Good (670-739)
- Very Good (740-799)
- Excellent (800-850)
Higher credit scores typically unlock lower interest rates, which means you’ll end up paying less in the long run. You can learn more about how interest rates impact your total loan payment using our Student Loan Calculator.
How to Ask Someone to Cosign Your Student Loan
Asking someone to be your cosigner is a significant request that comes with a lot of responsibility. Once you’ve decided who you want as a cosigner, you should plan how you’re going to talk to them about it.
Be Honest About the Responsibility
One of the most important things is being honest about what exactly you’re asking this person to do and what it means for them if they accept. Explain that cosigning your loan means they will share legal responsibility for repaying that money. Outline the associated risks, like impacts to their credit score and debt-to-income ratio. You can also point out that making on-time payments will help their credit score.
Acknowledging the gravity of your request will show your potential cosigner that you understand just how much responsibility you’re asking them to take on.
You should also be transparent with them about why you’re asking them to cosign – whether it’s because you don’t qualify on your own or do but want a lower interest rate. It may also help to share your goals with them, like the degree you’re looking to earn, how many years you expect to be in school, and what career you’re hoping to pursue after graduating.
Come Prepared with the Facts
You should be ready to answer questions and present any information your cosigner may want to know about your financial needs.
One of the most important factors you’ll want to share is your total loan amount. This gives your cosigner a better idea of how much money they’re taking responsibility for. You should also tell your cosigner what you’ve done to ensure you’re borrowing the lowest possible amount in private student loans. Let them know you’ve exhausted all other options, including federal loans, school financial aid, and scholarships.
In addition to the loan amount, some other baseline facts you should be prepared to share include:
- Lender: Who you plan on borrowing from (or the different options you’re considering)
- Interest Rates: What interest rate range your potential lenders offer
- Terms: Repayment plans (option and term), grace period details, relief options, and other loan details
You can also explain that being a cosigner doesn’t have to be permanent. Some private student loans, like Abe®, offer early cosigner release13 which relieves them of their responsibilities. If that specific perk isn’t available, you have other options you can explore to release your cosigner, like refinancing your loan(s).
Share Your Plans For Repayment
Another factor you should be prepared to discuss is how you’ll make payments after graduation. Since your cosigner will be held responsible for making payments as well, sharing any plans you have will help ease their mind and show that you’re thinking ahead.
For example, let them know if you have savings built up to put toward payments, or if you plan to work during school to build a savings account. You can also discuss job numbers or average salaries associated with your field of study.
Don’t Expect an Answer on the Spot
Don’t expect your potential cosigner to give you an answer on the spot. Give your potential cosigner time to think about their decision, and keep in mind they may need to discuss it with a spouse or even a financial advisor.
What Happens Next?
If the person you asked to be your cosigner says no, don’t take it personally. There may be factors you’re unaware of that impacted their decision. Start to think about who else you can talk to about cosigning your loan.
If your cosigner says yes, you should set aside time to look at your student loan application together. When it’s time to apply, you’ll both need information like your birth date, Social Security number, and income details – and they may need time to gather that documentation.
Ready to Apply for Your Loan?
If you’re still looking for a private student loan, Abe offers loans with competitive rates, flexible repayment options,3 and early cosigner release after just 12 months of on-time payments.13 You can find your rate in minutes with no impact on your credit score.2