The question “Do Student Loans require a cosigner” addresses a fundamental aspect of borrowing for college: whether you need someone else to guarantee repayment, and how this differs between federal student loans and private student loans. This guide explains federal and private loan cosigner requirements, factors that influence approval, and implications for borrowers in the U.S.
Who This Loan Is For
Federal student loans typically serve undergraduate and graduate students seeking financial aid through the U.S. Department of Education. These generally do not require a cosigner.
Parent PLUS Loans target parents of dependent undergrads; these do not require a cosigner either but are credit-based.
Private student loans are used by students who need funds beyond federal loan limits. Approval usually requires strong credit or a creditworthy cosigner, especially for undergraduates or borrowers with limited income and credit history.
Eligibility for federal student loans is based on completing the FAFSA, U.S. citizenship/permanent residency, Satisfactory Academic Progress, and other criteria verified through the Federal Student Aid homepage.
Key Facts (At-a-Glance)
Item
Details
Program Type
Federal Direct Subsidized, Unsubsidized, PLUS; Private lender student loans
Interest
Federal: Fixed rates; Private: Fixed or variable (“sample/illustrative”)
Accrual
Subsidized: No interest during in-school grace; Unsubsidized/private: interest accrues immediately
Repayment Plans
Standard, Graduated, Extended, and Income-Driven Repayment (IDR) for federal; limited options for private loans
Grace Period
Federal: typically 6 months post-enrollment; Private: varies by lender
Deferment/Forbearance
Most federal loans offer official deferment/forbearance; private lenders vary—always verify
Forgiveness/Discharge
Federal: PSLF, Teacher, Disability, School Closure; Private: uncommon
Annual & Aggregate Limits
Federal: limits by year/level (“sample/illustrative”); Private: up to full cost, subject to approval
Fees
Federal: origination fees (“sample/illustrative”); Private: may have disbursement or late fees—varies
Cosigner Rules (Private)
Most require a cosigner unless borrower meets income/credit standards; cosigner release available from some lenders after a set payment history
Pros
Federal loans require no cosigner or credit check (except for PLUS loans, and only a basic credit check).
Offer income-driven repayment, relatively low fixed rates, and access to forgiveness and deferment benefits.
Private loans can help fill gaps when federal aid is insufficient or unavailable.
Some private lenders offer cosigner release after “sample/illustrative” 12–36 months of on-time payments; confirm with each lender.
Cons
Private student loans often require a creditworthy cosigner for undergraduate or no-credit applicants.
If you lack a cosigner, private loan approval may be difficult, or the offered rate may be higher.
Cosigners are legally responsible for repayment if the student cannot pay, which exposes them to borrowing risk and may impact their own credit.
Cosigner release is not guaranteed and requirements vary widely between private lenders.
Costs, Interest & Repayment Mechanics
Interest is the annual cost of borrowing; APR includes interest and fees. Federal loan rates are set each year, while private lender rates depend on credit and school profile.
Interest on federal subsidized loans does not accrue while you are in school at least half-time and during grace. All other loans start accruing interest immediately upon disbursement.
Income-Driven Repayment plans for federal loans set monthly payments as a percentage of discretionary income and family size. Private loans typically have less flexible repayment options.
Sample/illustrative example below (rates, terms, and totals for demonstration only):
Complete the FAFSA for federal and most state financial aid; receive aid offer from the school.
Select a loan amount within eligibility boundaries; federal loans require a Master Promissory Note (MPN) and entrance counseling.
For private loans, submit application with credit check; most undergraduates need a cosigner due to limited or absent credit history.
Some private lenders may approve borrowers without a cosigner if they show steady income (e.g., ~$30,000+) and a FICO score above 670 (“sample/illustrative”).
School certifies loan need and receives disbursement directly; student receives refunds if award exceeds billed charges.
Repayment, Deferment & Forbearance
Federal loans usually enter repayment after a six-month grace period post-graduation or enrollment drop below half-time. Private loan grace periods vary.
Official deferment (school enrollment, unemployment, economic hardship) and forbearance (short-term hardship) are available on federal loans; private lenders may offer more limited options—always check terms.
During deferment or forbearance on unsubsidized/private loans, interest continues to accrue and may capitalize, increasing total repayment cost.
Forgiveness & Discharge Pathways
Federal loans may be forgiven via public service, teacher, or income-driven plan endpoints, as well as discharged for total/permanent disability or school closure.
Private student loans rarely offer forgiveness or discharge except in rare situations (such as death or permanent disability, and even then policies are stricter—confirm before borrowing).
Risks & Responsible Borrowing
Defaulting on any student loan damages credit, triggers collections, and can result in wage garnishment or legal action.
Cosigners are equally liable in the event of nonpayment, risking their own credit and finances.
Losing federal loan protections (via refinancing with a private lender) removes options like income-driven repayment and forgiveness.
Borrow only what you reasonably need and can afford to repay under official payment calculators and guidelines.
No. Direct Subsidized and Unsubsidized loans never require a cosigner. Federal PLUS loans require a basic credit check for adverse history but do not require a cosigner in the standard approval process. A creditworthy endorser (similar to a cosigner) may be used if PLUS is denied for credit reasons.
Why do private student loans often need a cosigner?
Most college-aged students have limited work and credit experience, so private lenders require a cosigner with strong credit and income to reduce risk.
Can I get a private student loan without a cosigner?
It is possible but less common; some lenders do approve applicants who have steady income and a 670+ credit score (“sample/illustrative”). Approval thresholds vary by lender and market conditions.
Does being a cosigner affect my credit?
Yes. The entire loan appears on the cosigner’s credit report and late or missed payments can negatively impact the cosigner’s credit profile.
What is cosigner release and how does it work?
Some private lenders allow cosigners to be removed after a defined number of on-time payments (e.g., 12–36 months) and a credit review. This is not automatic or guaranteed—requirements are lender specific.
What happens if I default on a student loan with a cosigner?
The cosigner becomes fully responsible for repayment. Default damages both parties’ credit and can lead to collections against either or both borrower and cosigner.
Are there student loans for international students without a U.S. cosigner?
Options are limited, but specialized lenders and programs exist. Some U.S. lenders will make loans to international students with a qualifying U.S. cosigner; others require additional documentation or charge higher rates.
Conclusion & Next Steps
Federal student loans, obtained through the Federal Student Aid homepage, do not require a cosigner for most applicants.
Private student loans typically require a cosigner unless the borrower can independently qualify based on credit and income. Requirements change periodically, so review each lender’s current policy carefully and confirm with the school’s financial aid office when comparing options.
Borrow only what is essential to limit long-term costs and protect your—and your cosigner’s—credit health. Review updated official guidance yearly, as student loan regulations, rates, and eligibility terms may change.
