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Paying for College

Word of the Day Wednesday: Co-Borrower

Each Wednesday, MEFA will feature a Word of the Day, in which we’ll highlight a word (or sometimes a phrase) related to the college planning process. This summer, we’re focusing on vocabulary related to college loans, and will highlight words you may come across on your loan application, solicitation disclosure, or a lender’s website.

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!

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