Private Student Loan: Having a Co-signer

When applying for a private student loan, you must be able to demonstrate your capacity to pay back whatever loan you are going to borrow. In other words, you must prove that you are a credible applicant when it comes to loan repayment.

Of course, the criterion of a credit-worthy prospective borrower is that he must be gainfully employed for at least two continuous years. Or if the would-be borrower is a businessmen or self-employed, he must be doing business for the same number of years.

Equally important when wanting to obtain a private student loan is the fact that a borrower must be a citizen of the United States. If not, he must at least be a permanent resident.

When applying for private college loan, it is better if you can obtain a co-signer for your application. And it should not just be any co-signer but a credible one as well. Whatever criterion would be required of you will definitely be also required of the co signer.

What are the advantages of having a co signer that possess good credit when applying for a private student loan?

If you are a student applying for a private college loan and your application includes a co-signer, you have greater change of your private loan being approved. Also, having a co signer would bring down the fees and the interest rate of your loan. Your payments every month will be much smaller than if you are applying without a credible co signer.