Borrowing a private student loan with a cosigner is common. But, before you jump in, make sure you understand the ins and outs of choosing — and removing — a student loan cosigner.
Some lenders will review a borrower’s income as part of their eligibility requirements and may also consider something called “free cash” flow.
It may make sense to consider family members. Though anyone can cosign a loan for you, a relative is generally a more reliable choice than a friend.
If you can’t make good on your loan for any reason, the lender has the legal right to pursue your cosigner for repayment.
You’ll need to discuss whether you’ll repay that person should he or she have to make payments at some point or if those payments will be gifts.
If you think a legal agreement sounds drastic, keep in mind that a friendly cosigning situation can go sour when you don’t hold up your end of the deal.