Home |Student Loan | Will co-signing my student loans affect my uncle's excellent credit, given that he currently makes $280,000 a year, has a paid-off house, and hasn't disclosed whether he has other loans? What impact does co-signing a new credit line for me have on his borrowing potential?

Will co-signing my student loans affect my uncle's excellent credit, given that he currently makes $280,000 a year, has a paid-off house, and hasn't disclosed whether he has other loans? What impact does co-signing a new credit line for me have on his borrowing potential?

Abbey Johnson, Helping with Student Loan Documentation
Answered on September 25,2023

You do not need a credit check, minimum credit score or co-signer for any federal loan.

Types of Loans

If they are private loans, then a credit score around 670 or so is needed. A co-signer agrees to take responsibility for repaying a loan if the primary borrower misses a payment. Whatever he cosigns will show up on his credit report as if the loan is his and could impact his credit score.

If your uncle were standing in front of me, I would tell him to avoid cosigning anything at all cost no matter who the person is that he is cosigning for. In addition, I would get as far away from private loans as you can possibly get.

These are scores of people, who deeply regret taking a private student loan.

Unlike government loans, they do not have the same benefits, you are not eligible for any kind of forgiveness, you are not eligible for any type of income driven repayment plan, you are not eligible for any kind of subsidized interest.

All this forgiveness you may be hearing about right now, or the 10k/20k of forgiveness that was shot down by the supreme court, did not include private loans.

Do not take a private loan!

Guide

Ultimate Guide on SAVE Plan - Payment Calculation, Interest, Forgiveness

Under the Saving on a Valuable Education (SAVE) plan, a single borrower who makes less than $15 an hour will not have to make any payments. Borrowers earning above that amount would save mor..
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Will co-signing my student loans affect my uncle's excellent credit, given that he currently makes $280,000 a year, has a paid-off house, and hasn't disclosed whether he has other loans? What impact does co-signing a new credit line for me have on his borrowing potential?

Ultimate Guide on SAVE Plan - Payment Calculation, Interest, Forgiveness

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