How do I ask someone to cosign a student loan?

1. Prepare Ahead of Time. ...
2. Schedule the Conversation. ...
3. Find An Appropriate Place to Talk. ...
4. Tell Them Why You Need a Cosigner. ...
5. Make Sure They Know What a Cosigner Does. ...
6. Make a Plan (But Be Flexible) ...
7. Give Them Time to Think.

What to do if you can't find someone to cosign?

Can you be denied as a cosigner?

In addition to having a good or excellent credit score, your potential cosigner will need to show that they have enough income to pay back the loan in the event you default on it. If they lack sufficient income, they won't be able to offset the lender's risk and may not be able to cosign.

What percentage of student loans have a cosigner?

Since private student loan eligibility is dependent on creditworthiness, students must often also ask parents, family members, or other trusted adults to cosign on their student loans. According to our data, about 90% of all private education loans are cosigned.

Is it bad to cosign a student loan?

Cosigning will affect both parties' credit scores. If the student borrower makes late payments or defaults, you could see your score drop, too. Some lenders let you remove a cosigner after a few years. Student loan refinancing¹ is another path to cosigner release.

Does Cosigning a student loan affect credit?

Cosigning a loan for a loved one or student borrower can also impact your credit if the primary borrower fails to make on-time payments. Missed payments and late payments can have a negative impact on credit scores for both you and the primary borrower.

Is it hard to get a cosigner?

The co-signer needs to have a good credit score.

If the co-signer's credit is the same as yours—or worse—they may not be approved to co-sign on the loan.

Is it rude to ask someone to cosign a loan?

If you're going to ask someone to take the risk of cosigning a loan for you, respect them enough to tell them why you need a cosigner. If it's due to low credit, be honest about what caused your credit score to drop.

How much credit do you need to cosign for someone?

Although lender requirements vary, a cosigner generally needs a credit score that is at least considered "very good," which usually means at least 670 or better.

Do most parents cosign student loans?

If the cosigner has good credit, a stable income, and minimal debt, the student can often secure a far more favorable loan. Cosigners are most often parents, but not always. In some cases, friends, partners, or other relatives will cosign a student loan instead.

Who is the best person to cosign?

Some of the best people to cosign are trusted friends or family members with a good credit history and a solid income history.

Should I cosign for my girlfriends student loans?

You should co-sign a student loan only if you can afford to pay it back yourself, because you may have to. Co-signing makes you legally liable to repay the loan if the primary borrower can't. And if you can't afford to make payments, your credit will be damaged.

What is a good credit score to cosign a student loan?

Lenders are more likely to approve your loan if your cosigner's credit score is 720 or higher. If your cosigner has a credit score between 680 and 720, he or she may still be able to help you secure a loan, but the interest rate will probably be higher.

Why do most student loans involve a co signer?

A co-signer might help you secure a student loan when your personal credit or income isn't strong enough to qualify on your own, but they are equally liable for student loan debt, as much as if they were the sole borrower. You don't want to make someone liable for your loans if you don't have to.

Does cosign affect credit score?

Whatever you cosign will show up on your credit report as if the loan is yours, which, depending on your credit history, may impact your credit scores. Cosigning a loan doesn't necessarily mean your finances or relationship with the borrower will be negatively affected, but it's not a decision you should make lightly.

How much easier is it to get a loan with a cosigner?

Yes, it may be easier to get a loan with a cosigner than without one as long as the person cosigning has a higher credit score and income than you do. Applying with a cosigner increases your chances of getting approved since they are promising to repay the loan if you are unable to.

Who are the most common co signers for student loans?

Parents are the most common cosigners for student loans, but they're not the only ones. A relative, family friend, or creditworthy adult can cosign as long as they meet the lender's cosigner eligibility requirements.

Can I cosign a student loan with a 650 credit score?

If your credit score is below 650, you're not likely to find a private lender who will approve an application to let you cosign student loan refinancing. However, the federal government allows parents to apply for Parent PLUS loans on behalf of both undergraduate students and graduate students.

Why is it so hard to get a student loan?

Private lenders base their lending decisions on various factors. The biggest factor is your credit history. It can be incredibly difficult to get a private student loan with no or bad credit from large financial institutions. Most large banks and student loan lenders have very strict underwriting criteria.

Is Sallie Mae easy get approved?

The average credit score for approved Sallie Mae borrowers is around 748 for undergraduate student loans. That's pretty high – but don't panic if your credit score is much lower than that. You'll need a minimum credit score (or have a cosigner with a minimum credit score) that is somewhere in the mid-600s.

Whose credit score is used with a co-signer?

Lenders can consider the credit scores of both borrowers when co-signing an auto loan. If you have a lower credit score, having a co-signer with a higher score could work in your favor.