Wednesday, May 26, 2010

When you are applying for a student loan do your parents have to sign it?

Federal student loans (Stafford and Perkins loans) are loans in the student's name only. however, you need to complete the Free Application for Federal Student Aid (FAFSA) form in order to apply for both. You need to include some of your parent's personal information on this form, however, it does not obligate them in any way to pay for your education or to borrow loans. You will automatically qualify for a Stafford loan when you file your FAFSA form.



Other, private, student loans often require a coborrower if you have little or no credit history, or if you have bad credit. In general, no, your student's don't HAVE to cosign, but you may need someone to cosign for you if you have never borrowed before, whether it be a parent, other relative, or friend.

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