How do I find a cosigner?

Securing a student loan is a significant step in funding your education, and a cosigner with good credit can increase your chances of getting approved for the lowest interest rates.

Why do I need a cosigner?

Most students require a cosigner for their student loans because they lack an established credit history. Students entering college often haven't had the opportunity to build credit through long-term financial commitments, such as credit card payments, car loans, or mortgage payments. Without a substantial credit history, lenders find it challenging to assess a student's ability to repay a loan. 

A cosigner with a solid credit background reassures lenders, increasing the student's likelihood of loan approval. Moreover, a cosigner can help secure lower interest rates, significantly reducing the financial burden on the student over time. 

Who should I ask to be a cosigner?

When looking for a cosigner, consider the following:

• Family Members: Parents, grandparents, aunts, uncles, and older siblings are often the first people to consider—they usually have a vested interest in your success!
   
• Close Family Friends: Someone who has known you for a long time and believes in your potential may be willing to help.
   
• Mentors or Former Employers: Individuals who have a professional or educational relationship with you and are familiar with your character and work ethic may agree to cosign your loan.

How should I approach potential cosigners?

Approaching someone to cosign a loan is delicate. You’ll need to be transparent, respectful, and prepared. Here are some scripts to guide your conversation:

1. Setting Up the Conversation

• "I have an important favor to ask you. Could we set up a time to discuss it when you have a moment?" Be prepared for them to say "Let's talk about it right now!"

2. Having the Conversation

• Introduction: "Thank you for taking the time to talk. I’m planning to go to college in the fall, but I need a cosigner to secure a student loan. I thought of you because [explain why you consider them a reliable and trustworthy person]."
   
• Explain What Cosigning Involves: "Cosigning a loan means that if for some reason I’m unable to make payments, you would be legally responsible for making them. I’m planning carefully to prevent that situation!"
   
• Talk About Rates: "If you agree to cosign, I'll need some information from you to complete the rate check so that we can get an interest rate and decide on whether to proceed together! The rate check will NOT affect your credit score—it's a 'soft pull,' in credit lingo." 
   
• Address Their Concerns: "If you have any other questions, I'll do my best to answer them! I understand that this is a big request, and you might need some time to think about it. Can you let me know by [date] if this is something you'd consider?"

Setting Yourself Up for Success

Finding a cosigner is not just about securing a loan—it’s about fostering trust and showing responsibility. By approaching the situation with respect, you'll increase your chances of a positive outcome.

If you have any other questions about consigning your loan, please get in touch with our trusted advisers! Talking to an expert at South Carolina Student Loan is always free.