A co-signer is someone who signs on the loan documents with you. From the bank or other lender"s perspective, if you return to your home country and never repay the loan, the bank or other lender has someone else they can look to in order to get repaid. Basically the co-signer is a co-borrower with you, equally responsible for repayment of the loan but they don"t have to pay anything if the borrower pays everything back as agreed. The loan will show up on the co-signer"s credit report.
The co-signer needs to be either a US citizen or a US permanent resident (green card holder). Other visa types (H visas, A visas, etc.) are not acceptable, as those visas end and the bank or other lender assumes (rightly or wrongly) that the visa holder will return to their home country and therefore not be around to repay the loan, if it becomes necessary. The co-signer also needs to have a good credit history - the better the co-signer"s credit, the better the interest rate you get and the less interest you pay over the life of the loan.
The co-signer does not need to be related to you (although people often ask family or close friends to co-sign) and they do not need to live in the same state as you attend school.
Although they need good credit and good income history, a co-signer does not need to pledge any property or other collateral - simply their signature and their good name.
http://www.quick-loans-guide.info/
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