While college or professional students commonly need to borrow for their education, qualifying for a loan can be difficult for a young person in school. Though most federal student loans don’t come with credit or income requirements, most private loans do. If you’re struggling to qualify for a student loan, adding a cosigner to your application could help.
This guide will explain what a cosigner is, when you might need one, and how to find a cosigner who can help you borrow money to pay for your education.
What is a cosigner?
A cosigner is someone who agrees to share responsibility for a loan. If the loan’s primary borrower can’t make payments as agreed, a cosigner must pay the loan themselves.
Cosigners generally have better credit, higher income, or are otherwise better qualified to borrow money than the primary borrower. If you can’t qualify for a loan on your own and instead apply with a cosigner, the lender considers your credentials and the cosigner’s to determine how much you can borrow and at what interest rate.
A cosigner typically must sign the promissory note for the loan right along with the primary borrower, and will share legal responsibility for repayment. This means if you ask someone to cosign for you on a student loan, your student debt will show up on their credit history — and the cosigner will be fully responsible for repaying the entire loan balance if you don't.
Sharing debt like this is risky because a cosigner’s credit could be damaged if the primary borrower doesn't pay. They could also face collection activities and be forced to repay the full amount borrowed if the primary borrower fails to follow through. Before asking someone to cosign on your student loans, be sure you can make all the payments.
Do you need a cosigner for a student loan?
Whether or not you need a cosigner for a student loan depends on the loan type and your own financial credentials. Here's what you need to know about common borrowing requirements and when you may need a cosigner to get approved.
Federal student loans
Most federal student loans don’t require you to have good credit or proof of income. As a result, you won’t need a cosigner for most kinds of federal loans, including Direct Subsidized and Direct Unsubsidized Loans.
However, federal Direct PLUS Loans work differently. If you have “adverse credit,” such as a recent history of loan default, foreclosure, or repossession, you’re ineligible for PLUS Loans unless you have an endorser. An endorser (which is what the government calls a cosigner) is someone who doesn’t have an adverse credit history and who agrees to take responsibility for paying back your PLUS Loans if you don't fulfill your obligations.
Almost anyone can be an endorser on federal loans as long as they don’t have adverse credit. However, the student for whom the loans are being taken out cannot be the endorser for parent PLUS loans.
Private student loans
While a cosigner isn't required for most types of federal student debt, the same isn’t true for private student loans. Private lenders generally have strict requirements about how high your credit score must be and how much income you must earn before you’re eligible to borrow.
Students — especially undergraduates — may not earn very much money or have had time to establish strong credit, making it hard to qualify for a private loan on their own. Instead, they’ll likely need a cosigner who meets the lender's income and credit requirements to borrow.
If you don't have a credit score of at least 670 or enough income to comfortably repay the loan, you may need a cosigner to borrow from a private student lender. Even if you can qualify on your own, adding a cosigner can help you lock in lower rates.
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How to find and choose a cosigner
Once you’ve determined if you need a cosigner, the next step is to find a cosigner for a student loan.
Remember, this person must meet the lender's income and credit score requirements. If they don’t, you could both be denied. Typically, the cosigner must also be a U.S. citizen or permanent resident. The purpose of the cosigner is to convince the lender that the loan will be paid back, and a cosigner only does that if they have solid financial credentials.
The cosigner will take on some risk, since their credit could be damaged if you miss a payment — and if you don't pay the loan, they’ll have to. Consider who in your life has financial stability and a vested interest in helping you succeed.
In many cases, borrowers will have a parent cosigner, but not everyone has parents who are willing or able to put their credit on the line. It can be tricky to find a cosigner, but other people to consider include:
- Grandparents, aunts, uncles, or other close family members
- Close friends who have known you for a long time
What to talk about
Before signing any paperwork together, talk with your cosigner about your lender's minimum requirements to make sure their credit and income are sufficient to help you get approved.
You should also make sure they understand the risks of cosigning and what they will be responsible for. Come prepared with a plan to show how you will repay the loans on time and discuss what you will do if you ever have trouble making payments.
Some lenders allow you to remove a cosigner after a certain number of on-time payments, such as 12 or 24 months’ worth. If you can find a lender with this rule, a loved one may be more willing to share responsibility since they’ll be doing so only for a short time. Go over the terms of the cosigner release together and make sure you both understand what needs to happen before you can qualify.
Related: What to Do If You’re Denied a Student Loan With a Cosigner
Alternatives for borrowers without a cosigner
In some cases, you simply may not be able to find a cosigner for a student loan. This can happen if your friends or family aren't on solid financial ground or willing to gamble on you paying back what you borrow.
If that's the case, explore other options for getting the loan you need, including:
- Exploring scholarships and grants: Scholarships and grants generally don’t require you to repay the money they provide, so you can get funding from these sources without needing a cosigner to guarantee a loan. Maximize these opportunities before turning to student loans.
- Maximizing federal aid: Since you don’t need good credit or proof of income for Direct Subsidized or Direct Unsubsidized Loans, you should try to borrow as much as you can from these programs. Direct Loans also come with other benefits for borrowers, including increased payment flexibility and forgiveness opportunities.
- Applying for no-cosigner private loans: Some private lenders, including Ascent and Funding U, cater to borrowers without great credit, and specifically offer loans you can get without a cosigner. While these may be easier to qualify for, they typically come with significantly higher interest rates than other options.
- Improving your credit before applying: If you can improve your own credit, you may not need a cosigner. You could boost your credit by paying down existing debt, asking creditors to remove negative information from your credit history, and making on-time payments.
