Student Auto Loans with a Cosigner

As a student, it's important to watch your finances. Student loans have grown hugely cumbersome for many twenty-somethings, and the last thing you want to have to worry about is paying off credit card debt once you graduate. After all, credit card companies do not offer much in the way of deferment plans and hardship loopholes that federal student loan lenders do. 

New federal regulations require that student under the age of 21 have a cosigner to get a credit card. This helps to keep them from getting in over their head financially. Cosigners are also a good idea when it comes to auto loans for students.  After all, buying a car is a much bigger investment than opening a credit card account. In fact, many banks and lenders will be pretty unwilling to fund your loan unless you have a parent, relative, or other trusted adult with excellent credit to act as cosigner on all of the paperwork.

Just don't forget that the cosigner's risk in this financial arrangement is commensurate with your own. They will be forced to pay back the loan if you cannot, and their credit could be damaged as badly as your own if you default or your car is repossessed.  Having a cosigner is pretty much crucial if you need an auto loan as a student; just keep in mind that the person cosigning your loan is doing you a very big favor and displaying significant trust in your ability to repay.