Today, in this post I m going to discuss about ‘cosigner’. In my previous posts related to private student loan I have mentioned about cosigner. Many peoples have different concepts about cosigner. I will try to clarify all your concepts of cosigner in this post.
In what conditions a cosigner is required???
When someone apply for a financial aid including Subsidized/Unsubsidized Stafford Loan or Federal Perkins Loan (see previous posts to find out what is Subsidized/Unsubsidized Stafford Loan or Federal Perkins Loan.), you doesn’t need the help of a co-signer. But not all student loans can be awarded to you without cosigner’s help.
As it is not likely that you have a
What is a student loan cosigner?
A cosigner is one who helps you to get a private college student loan. He is someone who extends his/her credit to a student so that they can acquire a student loan.
For this purpose cosigner has to signs an agreement or a promissory note with the student, to get student loan. And after this agreement confined him to pay the loan, if the student fails to make payment of the loan.
What is a credit-worthy cosigner?
As it is a common experience that many student enter college without having a credit report or credit score. In such case they need a credit-worthy cosigner who can help them in their payment of loan. Now you will ask to me that what should be the credit score of a credit-worthy cosigner? So the answer is, he need to has a strong credit score preferable above 750, he must has at least 27 months of credit history, he should be a U.S. citizen or permanent resident, he should has proof of satisfactory income for the past couple of years.
Who can be a cosigner?
A student loan consigner can be any relative, spouse or friend of the student, applying for student loan. But they must pass the above requirements and should be adult.
How do you ask someone to be your cosigner?
It is a fact that you may feel embarrass to ask someone to become cosigner for your loan. But you can ask somebody to be your cosigner by promising to make all payments regularly also you can give them some advantages of cosigning your student loan, for example you can assure them that they won’t have to make payments as long as you pay every month and they would release from their cosigning responsibilities after you established a good credit score by making on-time payments in 36-48 months.
Benefits of having a cosigner?
One can get some other worthy benefits besides receiving good credit history, by having a cosigner. He/she can get lower rate of interest on credit cards and other types of loans. They also help you to build credit history.
I think the above discussion is sufficient to understand the value of cosigner and benefits of having cosigner. One thing important which I recommend you is that you must convey to your cosigner that you will make your payments on time and above all you can be trusted. You should remember that cosigner is helping you and doing you a favor by extending his/her good credit history to you, so it is your duty and responsibility to don’t miss and make all your payment of student loan on time. Note that I have mentioned this thing for your benevolence. (For more information related to private student loan its options and benefits kindly read my other posts).
Posted by F.M.
24-Aug-2009
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