5 things you can do Before Co-Signing a Student Loan

5 things you can do Before Co-Signing a Student Loan

They are eligible for, you might be considering helping them pay for school by co-signing a loan from a private lender if you have a child or family member headed to college this fall and they’ve maxed out the federal financial aid.

The only way they can get a private loan is with a co-signer for most young people with little credit history or low to no income. The great majority of co-signers are moms and dads or close family relations, though anybody can co-sign that loan provided that they meet with the credit requirements.

Underwriting standards have actually become far more strict since 2008, as soon as the recession hit and student loan default rates spiked. About 93 per cent of personal undergraduate figuratively speaking for the 2018-2019 academic 12 months included a co-signer, up from 74 per cent when you look at the 2008-2009 time frame, according to MeasureOne, a information and analytics business that focuses primarily on figuratively speaking. Continue reading “5 things you can do Before Co-Signing a Student Loan”