Q: If I am still considered a dependent of my parents on their taxes, will their income have an effect on how much money I can get in private student loans for college?
A: If your parent(s) will be a cosigner on the private student loans, then their income and assets will be taken into consideration. However, if you can qualify for the private student loans on your own, without the help of your parents as cosigners, then your parents income and assets will not be taken into consideration. Private student loans are based on credit, and not on financial need.
If a borrower has little or poor credit history, it will be difficult to secure private student loans for college without the help of a creditworthy cosigner. Any cosigner on a private student loan (regardless of relationship to you) will have their income and assets taken into consideration when the lender is evaluating qualification requirements and/or rates.
It is important to remember that students should exhaust all of their federal financial aid (such as federal student loans and grants) and free money options (such as scholarships) before applying for a private student loan. You can learn more about private student loans for college by visiting our Private Student Loans section. Learn more about Scholarships for College and learn more about Federal Student Loans for College by visiting each section.
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