How to Get an Education Loan With a Co-signer

A co-signer can help a student to qualify for an education loan.

Many students require a loan in order to pay for their college education. A student who does not work during the school year will need someone to co-sign for the loan. The creditworthiness of both the student and the cosigner will impact the interest rate on the education loan. If the student does not have any credit, most lenders will require the cosigner to have a good credit score and stable employment in order to approve the loan.

Things You'll Need

• Education loan application
• Student income verification
• Co-signer income verification

Instructions

1. Contact the lender you want to use for an education loan and ask to speak with a loan officer. Inform the loan officer that you want to apply for an education loan and find out the current interest rate. Ask the loan officer if you have to make monthly interest payments on the loan before you graduate from college. If you decide to apply for a loan with the lender, have the loan officer mail you an application or pick one up in person.

2. Complete the education loan application. Contact the loan co-signer and have him fill out the joint section of the application. Make a copy of your most recent income tax return to give to the loan officer, and also have the co-signer make a copy of her tax return.

3. Return the education loan application to the loan officer. Give the loan officer the tax return copies and find out if you need to provide any additional information. Ask the loan officer how long it will take for you to receive a decision on the loan request. Write down the date so you know when to follow up with the loan officer if you do not receive a call.

4. Contact the loan officer if you do not receive a decision on your loan request by the agreed-upon date. If the loan officer approves the loan, schedule a time to sign the paperwork. Inform the co-signer of the loan approval and the closing time.

5. Take the cosigner with you to the loan closing. Review the terms of the education loan and sign the documents. Find out when your payments start after graduation, or the date of the monthly interest payments, if applicable. Keep a copy of the loan documents and make copies for the co-signer.

Tips & Warnings

• Try to make extra payments on the student loan to reduce the finance charges.

• Do not make any late payments or it will affect the credit of all signers on the student loan.

References

• SallieMae: Important Things to Know When Considering a Cosigner
• Federal Trade Commission: Facts for Consumers -- Co-signing a Loan

Resources

• Federal Student Aid: Glossary