My fiancee is looking to co-sign with her son for a private student loan. He will be attending grad school. He has about $10k in federal student aid secured and believes he will need another $8k for the school year (two semesters).
First question, what should he list for his income? He does not work. His mom does transfer $50 to him every two weeks, that’s $1300 yearly that can be documented easily. Other than that she does help by buying books and other necessities, could that count? He has received ~$2500 from various family after he graduated undergrad, could that count too? Anything else that I might be missing?
Second, any advice on what lender to go with? Should they be worried about being approved? (Both are around 720-730 FICO 8 scores.) He does have a relationship with Navy Federal (only 7 months) and she is also a member, but she hasn’t used her account (at all). She was leaning towards Discover, who she has had a long relationship with, fully positive.
So far only tried two soft-pull pre-qualifiers - did SoFi with $0 income listed for him and was rejected, did College Ave with $2500 income listed for him and was pre-approved.
Thank you in advance for any and all replies, we’re just clueless here!
My advice is use the KIS method Keep it Simple.
Does the Student receive a W2 or 1099?
Do they have a Trust Fund they Draw income From?
If they have none of the above then they have zero Income.