Do You Need a Cosigner? 11 Student Loan Scenarios to Know

A cosigner can help you qualify for a student loan, but do you actually need one? In this guide, we break down 11 situations where you might or might not need a cosigner, plus the pros, cons, and what it means for your financial future.

1. You typically don’t need a cosigner for federal student loans

Most federal student loans don’t require a credit check. That means you can apply without a cosigner. One exception is Direct PLUS loans, which do require a credit check, but even then, you can apply with an “endorser,” which is similar to a cosigner.

2. You may need a cosigner for private student loans

Private student loan lenders base approvals on your credit and income. If you don’t have much credit history or steady income, you’ll likely need a cosigner to get approved.

At College Ave, our team’s choice for best overall private student loan lender, 96% of undergraduate borrowers have a cosigner. Most students haven’t had time to build credit yet, and a cosigner can be essential to securing a loan.

3. A cosigner can help you qualify for a better rate

Even if you qualify on your own, adding a cosigner with good credit and income might get you a lower interest rate. That can save you money in the long run.

4. Most students need a cosigner

Roughly 90% of private student loan borrowers apply with a cosigner, often because they haven’t built a strong enough credit profile yet.

5. Who can be a cosigner?

A cosigner doesn’t have to be a parent. It can be any trusted adult who meets the lender’s credit and income requirements. Most students ask a parent, but you can also ask a grandparent, sibling, or family friend.

6. You’re responsible for protecting their credit

If you miss a payment, it affects your credit and your cosigner’s. In the worst-case scenario, your lender could pursue your cosigner for the unpaid balance.

7. Cosigners can be removed, but it’s not easy

Many lenders offer cosigner release after 12 to 48 months of on-time payments. However, 90% of applications are denied, often because the borrower hasn’t met the payment criteria or used forbearance.

If cosigner release is important to you (or your cosigner), Sallie Mae might be a good fit. Our team’s choice for the best private student loan for cosigners, Sallie Mae allows you to apply for cosigner release after just 12 months of on-time payments—one of the shortest timelines available.

8. Adding a cosigner could hurt their borrowing power

When someone cosigns your loan, it increases their debt-to-income ratio. This could make it harder for them to qualify for other credit products like a mortgage.

9. You may not need a cosigner if you have strong credit

If you already have a good credit score and stable income, you might be able to qualify for a private loan on your own. Some lenders now offer no-cosigner loans for students who meet certain criteria.

10. Some loans are designed for no-cosigner borrowing

Look into lenders that offer non-cosigned student loans, especially if you’re an upperclassman or graduate student. Funding U, for instance, offers private student loans designed for undergraduates without a cosigner.

11. Having a cosigner can add motivation to stay current

Knowing that your cosigner’s credit is on the line might encourage you to stay on top of your payments. It’s a built-in accountability tool—just be sure to stay in communication if your finances get tight.