CO-BORROWER CONSIDERATIONS

AT SLM FINANCIAL, WE HAVE FOUND THAT APPLICANTS WHO UTILIZE A CO-BORROWER SIGNIFICANTLY INCREASES THE CHANCE OF LOAN APPROVAL. SINCE YOUR CO-BORROWER CAN MAKE THE DIFFERENCE BETWEEN APPROVAL AND DENIAL FOR A STUDENT LOAN, IT IS IMPORTANT TO CHOOSE YOUR CO-BORROWER WISELY. BELOW ARE SOME IMPORTANT CONSIDERATIONS FOR THE SCHOOL AND BORROWER TO REVIEW.

DETERMINING NEED FOR A CO-BORROWER:

• Not Employed
• Limited or no credit history
• Poor credit history
• Currently in bankruptcy or no re-established credit since bankruptcy

ADVANTAGES OF HAVING A CO-BORROWER:

• Applicant has a better chance of being approved for the loan
• Gives borrower a chance to establish or re-establish credit
• Assign the loan’s interest rate to Co-Borrower’s credit score
• Co-Borrower Release Option

WHAT MAKES A GOOD CO-BORROWER?

• No serious derogatory items exist on the credit report
• At least 5 years of credit history is present
• Thorough and varied credit history is present (includes home and auto loans as well as credit cards)
• Steady employment with sufficient income to meet current debt requirements
• Credit is not overextended
• Home mortgage payments, auto loan payments and other loan/debt payments made on time

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