Cosigning a Student Loan: How It Works, Pros and Cons

Cosigners can play an important role in helping students qualify for college funding. In fact, 93% of undergraduate loans funded through Credible between June and September 2025 included a cosigner.

Adding a cosigner can make it easier to get approved and may help you qualify for a lower interest rate. But cosigning a student loan is a major financial commitment.

This guide explains how student loan cosigning works, when you may need a cosigner, the pros and cons of applying with one, and how to get a student loan without a cosigner.

What is a student loan cosigner? 

A student loan cosigner is someone who agrees to take equal responsibility for repaying your loan. If you miss payments or can’t afford to repay the debt, the cosigner is legally responsible for making those payments.

Cosigners are often required for private student loans because many undergraduate students don’t yet have the income, credit history, or financial background needed to qualify on their own. A cosigner with strong credit and stable income can improve your chances of approval and may even help you qualify for a lower interest rate.

Current private student loan rates

Who can be a cosigner on a student loan?

The person you choose as your cosigner person you choose must meet the lender’s income and credit requirements. Otherwise, adding them to your application won’t improve your chances of approval. The point of a cosigner is to show the lender that a financially responsible person is willing to take on the loan if you don’t repay it.

Eligibility requirements vary by lender, but cosigners usually must:

• Have good credit (often a FICO score of 670 or higher)
• Be at least 18 years old
• Have a steady income
• Be a U.S. citizen or permanent resident

Parents, grandparents, guardians, and close family members are the most common cosigners, since they’re often willing to help and have the financial stability lenders want to see. However, any financially qualified adult who meets the lender’s requirements can cosign your loan.

See Also: Do Parents Have To Cosign Student Loans?

Pros and cons of having a student loan cosigner 

Details on the pros

• May help you get approved for a loan: Many private lenders require borrowers to meet minimum credit and income requirements. Applying with a cosigner who has good credit and a stable income can help you get approved for funding. 
• May help you qualify for a lower interest rate: Lenders offer the best student loan interest rates to borrowers with strong credit profiles. A cosigner with strong finances may help you secure a lower interest rate, which can reduce your total repayment costs.
• May allow you to borrow more money: A cosigner’s income and credit history can strengthen your application and may help you qualify for a larger loan amount if you need additional funding for school.

See Also: Can I Get a Student Loan if My Cosigner Has Bad Credit? 

Details on the cons

• They’re equally responsible for the debt: A cosigner shares legal responsibility for the loan. If you miss payments or default, the lender can require the cosigner to repay the debt.
• Missed payments can damage both credit scores: Student loan activity appears on both your credit report and your cosigner’s. Late payments or default can hurt both credit scores and make it harder to qualify for future loans or credit cards.
• Removing a cosigner can be difficult: Some private lenders offer cosigner release, which allows the cosigner to be removed from the loan after you meet certain requirements. However, releasing a cosigner often requires 1 to 3 years of on-time payments and proof that you can repay the loan on your own.

Should I add a cosigner to my student loan application? 

Applying for a private student loan with a cosigner can make sense if you have limited credit history, low income, or want to improve your chances of qualifying for a lower interest rate.

“Private student loans typically require a cosigner, as many borrowers do not have a credit history or have a limited one,” says Jason Fannon, certified financial planner (CFP) and senior partner at Cornerstone Financial Services.

From a lender’s perspective, an 18-year-old heading to college without a strong credit history or steady income may be too risky to approve alone. That’s why many undergraduate students need a cosigner, even if the lender doesn’t explicitly require one.

Even students who can qualify independently may benefit from applying with a cosigner, since adding a cosigner with strong credit can help secure better loan terms.

In fact, undergraduates with cosigned loans qualified for APRs that were more than two percentage points lower on average than those who applied alone, according to Credible data gathered between June and September 2025.

Learn More: Best Student Loans With a Cosigner in 2026

What are the risks of cosigning a student loan?

Cosigning can help students qualify for loans and secure better rates, but there are significant risks to consider.

“Cosigners are legally responsible for the loan,” explains Jack Wang, a wealth adviser and host of the “Smart College Buyer” podcast. “I often run into parents who don't realize this.”

Once you cosign, the loan appears on both your credit report and the borrower’s. 

“This can impact the ability of the cosigner to get other credit in the future, such as refinancing a mortgage or getting an auto loan at a lower rate,” warns Wang.

Because lenders treat cosigned debt as your own, it affects your debt-to-income ratio (DTI). 

“Creditors look at debt-to-income ratios when they decide if they are going to approve you for future loans,” says D’Andrea. If the student loan balance is large, it could push your DTI too high to qualify for additional credit.

Payment history is another risk. Any late or missed payments will appear on the cosigner’s credit report. 

“The risks of cosigning a student loan are primarily to your credit,” says Fannon. “Any late or nonpayment can reduce the borrower’s credit score.”

In the worst-case scenario, the cosigner could end up repaying the entire loan. 

“If the student borrower doesn't pay the loan, the lender will go after the cosigner for payment,” explains Wang.

Can student loan cosigners be removed from the loan later?

Because student loans can take years or even decades to repay, many cosigners worry about being tied to the debt long-term. The good news is that it may be possible to remove a cosigner from the loan. 

Many private lenders offer a cosigner release option, which allows the cosigner to be removed once the primary borrower meets certain requirements. These requirements vary but often include:

• Meeting the lender’s credit score and income requirements
• Making 12 to 36 consecutive on-time payments
• Submitting a cosigner release application

Not all lenders offer this option, and even when they do, approval isn’t guaranteed.

If cosigner release isn’t an option, refinancing can be another way to remove a cosigner. With refinancing, the borrower applies for a new loan in their own name and uses the funds to pay off the original debt.

How to get a student loan without a cosigner

If you’re denied a student loan with a cosigner or you prefer not to use one, you still have options for borrowing on your own:

• Apply for federal student loans: Federal loans generally don’t require a cosigner or a credit history to qualify. 
• Build your credit: You can do this with a secured credit card or by becoming an authorized user on someone else’s long-standing account with on-time payments and low credit use.
• Show proof of income with part-time work: Meeting a lender’s minimum income requirements can improve your chances of qualifying for a loan.
• Look into lenders that don’t require cosigners: Some private lenders, like Ascent, MPOWER, and A.M. Money, offer student loans without a cosigner. However, keep in mind that these loans may come with higher interest rates.

If you still can’t qualify for enough funding, you may need to consider alternatives such as attending a more affordable school or waiting until you’ve built the credit and income history needed to borrow on your own.