Word of the Day Wednesday: Co-Borrower
Today’s Word of the Day is Co-Borrower
A co-borrower is someone who signs the loan application and loan note along with the primary borrower.
What does this mean for you?
Adding a co-borrower might improve your chances of being approved or help you qualify for better terms. It is important to keep in mind that the co-borrower shares the full responsibility for repaying the loan if the primary borrower falters during repayment.
The majority of MEFA loans are borrowed by a student borrower with a parent or other credit-worthy co-borrower, though as you review MEFA’s new loan rates, you’ll see that MEFA does allow for up to three borrowers on a loan. All borrowers have the same rights and responsibilities on the loan, and any borrower may make payments.
Still have questions about co-borrowers? Ask them in the comment section below – we’ll get right back to you with clarification. And remember to check back next Wednesday for our next Word of the Day!