Do I Really Need an Education Sponsor?

85% of all students require a co-borrower to secure an education loan. You will need to involve someone among your spouse/family/friends who wants to see you succeed and help you achieve your education and career goals.

Courtesy of Sallie Mae Financial Corporation, below is a checklist that will help you determine if you will need a Education Sponsor or Co-Borrower.

SLM Co-Borrower Checklist

Determining the Need for a Co-Borrower:

If any of the following apply for the student a co-borrow will be needed

• Unemployed
• Limited or no credit history
• Poor credit history; Several delinquencies on accounts (paying bills 30, 60, 90 days late; accounts in collections)
• High debt to income ratio (greater than 45%)
• Have an outstanding judgment or lien
• Have no re-established credit (18 months worth) since bankruptcy has been discharged
• Have any charged off accounts (creditor wrote it off)
• Not a US citizen or permanent resident

Benefits of Having a Co-Borrower:

• Rates are based on the better credit rating
• Lower interest rates
• Smaller monthly payments
• Less interest paid over the term of the loan
• Establish credit for future loans
• Co-Borrower release option (after 24 current payments)

Typical Features of Student Loans:

• Best credit profile receives rate of prime + 1%, 2% supplemental fee
• Flexible terms (1-15 years, 10 years most common)
• Interest-only payments available
• Defer payments for up to 12 months
• No prepayment penalty
• Minimum loan amount $1,000
• Payment begins 30 days after disbursement
• Additional 60% of the tuition (not to exceed $6,000) can be included in the loan for other associated educational costs

Complete preliminary loan application [Word format, PDF format] to begin the process.