How to choose the right cosigner for you

Why would you need a cosigner?

If you’re considering taking out a private student loan, having a cosigner with good credit can up your chances of getting approved. Since private student loans are credit-based, having a solid credit history is essential for approval. However, many students haven't had the opportunity to build that credit history yet, making a cosigner an important option for securing the loan. 

Who can be a cosigner? 

A cosigner can be anyone you trust, like a relative, guardian, close friend, or spouse. Only one person can cosign for a private student loan, and they’re equally responsible for paying the loan in full. It’s crucial to choose someone who understands the commitment.

It’s best to ask someone you know well. But asking someone to cosign a loan can be tough, so make sure you have that conversation to ensure they understand what they’re agreeing to. 

Are there other ways to find a cosigner? 

There are online services that can match you to a cosigner. These services find people online who are willing to cosign your loan but may charge a high upfront fee before you even get a loan. In some cases, you could be matched with someone who doesn’t pay back the loan, putting your financial health at risk. It’s hard to tell the legitimacy for some of these services, so make sure you do your research to ensure you are dealing with a reputable company.

If you come across an online cosigner service, look out for these red flags:

• Large upfront fees
• Guaranteed approval for everyone
• Unclear or vague terms
• Lack of reviews or complaints
• Pressure tactics to get you to sign up
• No contact information
• No real verification process
• Requests for excessive personal info
• Poor website design, like broken links and domain names that don’t match the company name

What you can do to stay safe

Here’s what you can do to avoid getting scammed:

• Carefully review the terms and conditions
• Never provide sensitive info upfront, like your Social Security number or bank account details without verifying the legitimacy of the service
• Read reviews on trusted platforms, like the Better Business Bureau
• Check your state’s consumer protection agency for the service’s compliance with local regulations

Choose what works for you

You’ve got options when it comes to choosing a cosigner. It’s a big commitment so you really want to make sure that you know and trust this person. By staying vigilant, you can up your chances of finding a trustworthy cosigner and avoid the risks of fraudulent services. Always prioritize safety, communication, and clear agreements so you and your cosigner are on the same page.