Who should I ask to cosign my student loan?

Securing a student loan can be a crucial step in achieving your educational goals, but oftentimes, you’ll need a cosigner to make it happen. A cosigner can significantly improve your chances of loan approval and potentially lower your interest rates. However, choosing the right person to cosign your loan and approaching them can be daunting. Let’s guide you through the process and address some common concerns.

What is a Cosigner?

A cosigner is someone who agrees to share the responsibility of repaying your student loan. This person signs the loan agreement alongside you, promising to repay the loan if you are unable to do so. Cosigners play a vital role in helping students secure loans, especially if the student has a limited credit history or income.

Benefits of Having a Cosigner

Having a cosigner can offer several advantages:

• Improved Chances of Loan Approval: Lenders are more likely to approve your loan if you have a cosigner with a strong credit history and stable income.
• Potential for Lower Interest Rates: A cosigner with good credit can help you qualify for lower interest rates, reducing the overall cost of your loan.
• Possible higher loan amounts: Having a cosigned loan could enable borrowers to be approved for higher loan amounts than they would qualify for individually.
• Building Credit History: Successfully repaying a loan can help you build your credit history, which is essential for future financial endeavors.

How common are cosigners? At Citizens, 98% of our undergraduate student loans include a cosigner.*

Who Should You Ask to be Your Cosigner?

Choosing the right cosigner is crucial. Here are some qualities to look for in a loan cosigner:

• Good Credit History: A cosigner with a strong credit score can improve your chances of loan approval and secure better interest rates.
• Stable Income: Lenders prefer cosigners with a reliable source of income, as it indicates their ability to repay the loan if necessary.
• Strong Personal Relationship: Trust and mutual understanding are essential when selecting a cosigner. Ideally, this person should be someone you have a close and supportive relationship with.

Potential candidates for cosigning your loan include parents, guardians, relatives, and trusted friends. It's important to choose someone who understands the responsibilities and risks involved in cosigning a loan. 

Considerations for Cosigners

Before asking someone to cosign your loan, it's essential to understand the implications for them:

• Financial and Legal Obligations: Cosigners are legally obligated to repay the loan if you default. This responsibility can impact their financial stability.
• Impact on Credit: Cosigning a loan can affect the cosigner's credit score. Late payments or defaults can negatively impact their credit history.
• Risks and Responsibilities: Cosigners should be aware of the potential risks and responsibilities associated with cosigning a loan.

How to Approach a Potential Cosigner

Initiating the conversation with a potential cosigner can be challenging. Here are some tips to help you approach them:

• Be Honest and Transparent: Clearly explain why you need a cosigner and how it will benefit your educational goals.
• Discuss Mutual Expectations: Ensure that both you and the cosigner understand the loan terms, repayment plan, and potential risks.
• Provide Reassurance: Offer reassurance by sharing your commitment to repaying the loan and your plans for managing your finances responsibly.

Making the Final Decision

Choosing the right cosigner for your student loan is a significant decision that requires careful consideration and open communication. By understanding the responsibilities and approaching potential cosigners with honesty and transparency, you can secure the support you need to achieve your educational goals. Learn more about how  Citizens Student Loans® could help make college possible.