For students who plan to take out a Loan to Learn Education Loan, here's an important reminder: Find someone to co-sign your personal student loan. In fact, the more co-signers you have the more you stand to gain. When there is more than one co-signer on your student loan, your loan terms will usually be determined based on the co-signer with the best history of credit and income. (Note: If your family’s income depends on the salaries of both spouses, both would be required to co-sign your loan.)
Here’s why you should consider having co-signers:
- Creditworthy co-signers can help you qualify for your loan
- You may qualify for a larger personal loan amount
- You may get a lower interest rate, and that means lower payments and a lower total cost for your student loan
- By getting a loan and paying it on time, you'll establish a good credit history
- By taking on and handling this obligation, you'll develop good financial habits for a lifetime
Co-signing poses no risk to your co-signers unless you default on your student loan. And co-signers, subject to certain conditions, can be released from their obligation after 48 consecutive on-time payments.