Why Do I Need a Cosigner for an International Student Loan?
July 20th, 2012 by Jennifer Frankel

If you are planning to apply for an international student loan, you will soon run across the term cosigner. A cosigner is someone who assumes responsibility in case you are unable to pay back the loan. All international students in the US and many US students going overseas will need to have a cosigner in order to be approved for a student loan.

So while you may be asking yourself, “why do I need a cosigner for an international student loan?” you will soon find that there are many advantages to this. First, all international students are required to have a cosigner in order to apply to a US student loan. This requirement is standard for all US loans.

Why, you ask?

Many international students return to their home country after their studies, and by having a US cosigner this allows the lender to ensure repayment. A co-signer is legally obligated for repayment of the loan, the same as the borrower. The loan will appear on the cosigner’s credit history as an outstanding obligation. If the borrower fails to repay, the cosigner would have to repay. Basically the cosigner is joining the loan application, as an international student cannot receive such credit on his/her own.

For US citizens, while it is not required, it does help your chances of getting approved, depending on your credit history. Even if you may not be required to have a cosigner, choosing a creditworthy cosigner can reduce your overall cost of borrowing. International student loans require that you pay back not only the amount you borrowed, but they also charge an additional percentage as your cost of borrowing. Depending on the creditworthiness of your cosigner, this percentage may vary. It is important to choose a creditworthy cosigner to ensure a good interest rate with the lowest borrowing rate.

The main requirement for your co-signer is that he or she is a US citizen or permanent resident with good credit, living in the US for the past two years. Unfortunately there are no exceptions for US international student loans. So the next time someone asks you, “why do I need a cosigner for an international student loan?” – you can now answer with certainty! Not only does it increase your likelihood of getting approved, but it can also lower your overall interest rate on your loan.

6 Comments

  1. bizumuremyi claude says:

    hello? thank you for remembering Rwandan students regarding to the loan. please can you allow me to meet with you for knowing more information about it? kindry allow me to met with you because i have some questions i want to mak it clear. thank you so much

  2. dagimw.kurabachew says:

    i am medicine student how can i get better education?

  3. philippe safari says:

    i,m philippe safari from congo(drc)i have bachelor degree in pharmacy,plz help me to findi a-cosigner,so i can continue my Dpharm,thinks

  4. aleminh says:

    hank you

  5. Olushola Olayemi John says:

    Good info. how do l get in touch with the loan and start pay for my school fee? Or can you help someone to secure job in order to refund loan?

  6. NTAWUYAMARA Jésus-Achille says:

    through this site i see that there must be some opportunities that for sure i don`t know how nto go through. in fact i ‘ve finished studies in a field of englisg pedagogy departement but failled to defend my thesis after my second cycle of pedagogic studies because of means. by this would like to enquire if there is a chance for me to get registered in a university so to get a degree.I beg in education. i beg a helpping hand thank you for the attention that you`re going to give to my request
    I m looking to reading you very soon
    yours faithfully, ACHIILLE

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