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Home Ask Student Aid FAQ How Does Cosigning a Student Loan Affect My Credit

How Does Cosigning a Student Loan Affect My Credit

If you decide to cosign a student refinance loan, you are equally responsible for that debt. The debt will show on your credit report, and lenders may consider the cosigned loan(s) while approving you for other types of credit.

If the borrower is unable to make their monthly payments, the responsibility will fall to you. If you decide to cosign a loan, there are several factors you should consider:

  1. Do you trust the borrower of the loan?
  2. Will the borrower be responsible and repay the loan or communicate with you if they are facing financial hardships?
  3. Does the lender offer cosigner release, and do you know their terms (length of time in repayment, and any other terms which could eliminate the option)?
  4. If needed, could you afford to repay the loan with no assistance from the borrower?