Many college students need to take out a private student loan in order to pay for college. However, not many have had the chance to build their own credit yet. Having a cosigner can help you get approved for student loans. But you may be wondering: can I have multiple student loan cosigners?
Most Lenders Only Allow One Cosigner
Nearly all lenders will allow only one student loan cosigner. This means if two people are willing to be cosigners on your loan, only one person will be recognized as the legal cosigner. This applies to your parents too. If both parents are willing to be cosigners on your loan, only one parent will be recognized.
Why Do You Need A Cosigner In The First Place?
Private lenders approve loan applications and determine interest rates based on the prospective borrower’s credit history. Borrowers who have strong credit history find it easier to get approved fr loans and at lower interest rates too. Going by this trend, students would find it almost impossible to get private student loans as they would not have had the opportunity to build their credit history yet.
To make it possible for students to get the funds they need, private lenders allow students to borrow money if they have a creditworthy cosigner. A student loan cosigner is a creditworthy person who essentially takes responsibility for the loan.
Who Can Be A Cosigner?
There are no restrictions as to who can be a cosigner as long as the person meets the lender’s credit criteria. Your cosigner can be a parent, guardian, spouse, relative or even a close friend.