Do Parents Have To Cosign Student Loans?

If you need to borrow for college, applying with a cosigner can make it easier to qualify for a private student loan and may help you get better loan terms.

Data compiled by Credible from January through July 2026 shows that undergraduate applicants who applied with a cosigner were approved for nearly twice as much funding and prequalified for interest rates nearly 3 percentage points lower than students who applied on their own.

This guide explains when you need a cosigner, who can cosign, and what to consider before applying.

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Do federal student loans require a cosigner?

Most federal student loans don’t require a cosigner. Direct Subsidized and Direct Unsubsidized Loans don’t require a credit check, and your credit history and income don’t affect the interest rate you receive.

Parent PLUS loans are different. They require a credit check, and parents with an adverse credit history may not qualify on their own. If you're denied, you may still qualify by documenting extenuating circumstances or adding an endorser, which is similar to a cosigner.

Some graduate and professional students who qualify for the temporary grad PLUS loan exception may also need an endorser if they have an adverse credit history.

Do private student loans require a cosigner?

Many undergraduate students need a cosigner to qualify for a private student loan because they may not yet have the credit history or income lenders require. If you apply with a cosigner, the lender will consider both your financial profile and the cosigner’s. 

Cosigning also means sharing full responsibility for the debt. “Cosigners have to fully repay the loans if the student stops making payments,” explains Domenick D'Andrea, a financial advisor and cofounder of DanDarah Wealth Management.  

The loan and its payment history also appear on the cosigner’s credit report. If payments are missed or the loan goes into default, the cosigner’s credit can be negatively affected, and the lender may pursue both the student and cosigner for repayment, including through a lawsuit. 

Cosigners must also meet the lender’s credit and income requirements. That means a parent with bad credit or limited income may not qualify as a cosigner.

See Also: Student Loan Options for Parents With Bad Credit

Who can cosign a student loan?

A cosigner doesn’t have to be a parent.

“Anyone could cosign for student loans,” says Steve Azoury, chartered financial consultant (ChFC) and owner of Azoury Financial. “This could include grandparents, aunts, uncles, and friends.”

Whether a specific person qualifies depends on the lender’s requirements, which typically include having a stable income and good credit. Many lenders look for a credit score of at least 670, though requirements vary.

Just as important, the cosigner should be prepared to take full responsibility for the debt if the student stops making payments. “You shouldn’t cosign a student loan if you aren’t prepared to pay it off should the actual borrower default,” Azoury says.

See Also: How To Ask Someone To Be A Cosigner On a Student Loan

What are the risks of cosigning?

Cosigning a student loan can affect your finances for years, so it’s important to understand the risks before agreeing.

“The major risk of parents cosigning for student loans is the liability,” says Azoury. “If something happens to the student loan borrower or they completely stop paying the debt, then the cosigner would be liable.”

The loan can also affect the cosigner’s ability to borrow. Because the debt may be included in the cosigner’s debt-to-income ratio, it could make it harder to qualify for a mortgage, auto loan, or other credit. 

It’s also important to check what happens if the student dies or becomes permanently disabled. Some private lenders discharge the balance in these situations, but policies vary.

Before cosigning, make sure both parties understand the repayment commitment. “I would make sure that no matter who cosigns for the loan, that they sit down with the student and explain how important it is to pay your debts,” advises D'Andrea.

Can you get a student loan without a cosigner?

Most federal student loans don’t require a cosigner, which makes them a good place to start if you need to borrow for college. 

Getting a private student loan without a cosigner can be more difficult, especially for undergraduate students who may not have enough income or credit history to meet a lender’s requirements on their own.

Some private lenders offer no-cosigner loans and may consider factors such as your academic performance or expected future earnings instead of relying as heavily on credit and income. However, your lender options may be more limited, and you may qualify for a higher interest rate than you would with a cosigner.

See Also: How To Get a Student Loan With No Credit