Co-applicant and collateral checklist for an education loan
Keep the people, income evidence and assets in your application distinct so obligations are understood before signing.
Treat co-applicant and collateral as separate decisions
A co-applicant is a person taking contractual responsibility under the loan terms. Collateral is an asset or security accepted by the lender. A product may ask for one, both or neither; only the written product and sanction terms decide.
Map every person's obligation
Record who is borrower, co-borrower, guarantor, property owner and repayment contact. Ask what each person signs, what information is reported, and what happens if payments are delayed.
- Identity and address evidence
- Relationship to the student
- Income and existing liabilities
- Ownership of any proposed security
- Required signatures and guarantees
- Repayment responsibility during and after study
Check an asset before building the plan around it
Confirm ownership, title documents, existing charges, valuation method, insurance, legal costs and release procedure. Do not assume the lender will accept an asset because it appears valuable.
Keep copies of the final pack
Store the signed application, valuation and legal reports supplied to you, sanction letter, Key Facts Statement, loan agreement and security documents. Every affected family member should know where the final terms are kept.
Primary sources
Requirements and provider terms change. Confirm material decisions with the responsible government, university, lender, insurer or accommodation provider.