If you have creditworthy co-signers, like both parents, grandparents, or other close relatives, you’ll start out ahead of the game. (Note: If your family’s income depends on the salaries of both parents, both parents should be encouraged to co-sign your student loan.)
- You may qualify for a personal student loan you wouldn't have been able to get based on your credit history
- You can often qualify for larger student loans based on your co-signer’s financial history
- You may qualify for lower interest rates, and that means lower payments and a lower total cost for your student loan
- You can build up your own credit history
Having Two Co-Signers is Even Better
Multiple co-signers can only work to your advantage since your student loan terms will usually be based on the co-signer with the best history of credit and income.
When there is more than one co-signer on your loan, your student loan terms will usually be determined based on the co-signer with the best history of credit and income. So multiple co-signers can only work to your advantage.
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.