Your co-signer could do you more harm than good.
Before they will lend thousands of dollars to a college-bound 18-year-old, around 80% of private lenders require a co-signer, according to the Consumer Bankers Association. Typically, that’s a parent or another relative, but it can be anyone willing to take responsibility for paying back the loan. Private lenders often tout the benefit of an adult cosigner, saying that because students don’t have much of a credit history, the a co-signer’s good standing can help secure a lower interest rate. That’s true, but it also puts the student at the mercy of the parent’s credit history, which may not be so stable these days.