Frequently asked questions about co-signers.
How does your child know if he or she needs a co-signer?
To apply without a co-signer, your child will need to be able to satisfy the following
criteria:
- Unless retired, have a satisfactory employment history for at least the last two
years (if self-employed, must have been in business for at least the last two years),
- Must have proof of current positive income (if self-employed, the business must
also have a net positive income for the last 2 years),
- Must have at least 21 months of credit experience and a satisfactory credit history,
- Must be a U.S. citizen or permanent resident and have resided in the U.S. for the
previous two years, and
- Must have resided at the most current and immediately preceding addresses for a
total of at least one year
International students or applicants that do not otherwise meet these requirements
will need to apply with a qualified credit-worthy U.S. citizen or permanent resident
co-signer to be approved.
Do most student applicants have a co-signer?
Yes. Most applicants need one.
Will having a co-signer help a student’s chances of being approved for a loan?
Yes. With a strong co-signer, the likelihood of a fast approval goes way up — even
if your child doesn’t have an established credit history. And a co-signer with excellent
credit could lower loan rates and fees. In addition, a co-signer release benefit
is available to borrowers who make their first 48 payments on time and who elect
to make automated payments.1
Does having a qualified co-signer ever hurt a student’s chances?
No. A student won't be turned down because a parent or another co-signer "has too
much money."
