What is Co-signer?If you have been into international student loans at all, you have probably noticed the term “cosigner” popping up everywhere. What exactly is a cosigner? Unfortunately, a cosigner is more than just a second signature on your loan application.
In the United States, the term cosigner refers to a second party who will become responsible for the payments if the borrower is unable to repay the loan. It is added security for the lender that gives them a second person to pursue if they do not receive payment.
4 REQUIREMENTS YOUR COSIGNER MUST MEET FOR YOUR LOANWhile the concept is simple, finding a loan cosigner can be very difficult, especially for an international student; not just anyone can cosign a loan.
A qualified cosigner can be difficult to find because private lenders will require that they meet certain criteria. The most common and important requirements are that your cosigner:
1. HAVE A GOOD CREDIT SCORE AND CREDIT HISTORY
The point of having a cosigner is to provide additional security on the loan, so the cosigner must prove that they will mak e the payments if need be. The proof that lenders look to is credit history and credit score.
To be continued...
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