A cosigner should be a responsible adult with strong credit and consistent income. Anyone who cosigns a student loan should understand how it works and the potential risks. Cosigners are just as responsible for paying back the debt as the borrower. If the borrower fails to make a payment on their loan, the cosigner is responsible for making that payment. If the borrower stops paying the loan entirely, the cosigner must make the remaining loan payments.
Being a cosigner also has an impact on your credit score as it will increase the debt on your credit reports. Late payments will affect your credit history, not just the student’s credit history. Both your credit history and debt-to-income ratio play a major role in your ability to qualify for loans. If you cosign a large student loan, you may struggle to qualify for other loans.