Question

Why do most student loans involve a co-signer?
a.
Most students won’t be able to afford paying for their loans, and leave that responsibility to their co-signers.
b.
Co-signers were most likely college students themselves and understand what it is like to be a college student.
c.
Most students aren’t responsible enough to know much about any type of loans, so a co-signer is there to make sure everything is secure.
d.
Most students are young enough not to have much of a credit score or credit history, so a second party such as a parent or guardian can establish security of payment.

Answer 1

d.
Most students are young and have little or no credit history, so lenders require a co‑signer (often a parent) to provide creditworthiness and a guarantee of payment.