Do students loan have to have a co-signer?


The student loan is a method of lending money to students for their education. It’s a loan given by the banks to students who require financial help in their higher education such as an undergraduate or post-graduate program or even higher education. The student loan is granted to the student which helps them cover the cost of tuition fees, books, associated costs of the degree, and so on.  Here we will see about Do students loan have to have a co-signer?

The loan given to each student is usually a total of tuition fees. The loan granted is a little higher than the tuition fee to help students with the extra costs which come with a degree.

As a loan is lending money, the student has to pay back the money they have taken as a loan over a period. The money can be returned in small sums of the amount until the amount is paid.

Do students loan have to have a co-signer?

How to pay back the loan?

A student loan is usually an amount a little higher than that of tuition fees.

For the loan to be granted, the student must present documentation that confirms that the student has gotten into a particular college with an estimated tuition fee. This documentation must be from the college or university to which the student has applied to.

After the loan is granted, the student will have the entire period of their course where they don’t have to pay the loan back.

After they finish their education, they have to start paying back the loan over a couple of years with interest.

Interest is a set rate that decides how much extra the student has to pay as a result of being able to take a loan. The student will pay the loan in pieces.

The number of years one has to pay back the loan is decided by themselves when they take the loan at the beginning.

The loan must be paid with interest within the given time otherwise the collateral presented to the bank by the student will be confiscated. Collateral is a measure given to the bank, it can be land, house, property, or anything else with the country which will be confiscated if the loan is not paid.

Private loans have a higher interest rate than that of government banks and hence most students turn to government loans.

Do students loan need a co-signer?

As students loan are given on collateral they do require a co-signer.

Some loans are given based on the student’s credit score. A credit score is when the student has a set minimum bank balance and keeps a certain stable amount in their bank account for at least six months.

If the credit score isn’t good enough for being accepted for the loan, then the student will have to take a loan based on the collateral.

Collateral can be any property, house, jewelry, plot, or such products that are owned by either the student or their family.

If the collateral is owned by a family member and they are the one giving it as collateral, their signature is important. The person who owns the collateral becomes the co-signer.

If not giving the product as collateral, some banks give loans based on the bank accounts of the parents or legal guardian. If the student fails to pay the bank the amount back, the bank will cease the collateral account for the amount.

In such cases as well the bank account owner becomes the co-signer.

Most students loan are granted with a witness signature who is a co-signer.

Some private banking companies give loans without a co-signer but it is done by non-documentation process and so it is not completely legal.

When can one give back the loan?

Depending on how many years the student has chosen to pay back his/her loan, the duration of paying back the loan changes.

For example, if one student wants to pay the loan within 5 years, then he will have to start returning the amount every month with interest after he finishes his course.

The interest is added depending on the period of the loan, with more number if years, the interest rate is reduced and wise versa.

If the student wants to start returning the loan before finishing his or her education, the interest rate would not be added to some bank loans.


Student loans were started for students to help them complete their education with financial help.

The loan is granted to students only, with confirmed admission.

As loans can be tricky, one has to be sure and must do a background check on every bank they are planning to consider for the loan.

Co-signer is a witness or alternate individual who is equally responsible for the re-payment of the loan. If the student fails to pay the loan on time, the co-signer will be held in question and some cases will be responsible to pay back the loan.

Hence the co-signer should as well make sure to do their research and compare the pros and cons before taking student loans.

Frequently Asked Questions 
  1. Can anybody take a student loan?

Yes, students loan can be taken by parents for their student education or the student themselves can take the loan

  1. Is it difficult to take students loan?

No, it requires documentation for verification and a stable income source.