Many of our applicants require a guarantor to support their student loan application. Read below and find out why it is you might need a guarantor for your student loan, what it is we look for in a guarantor and who can act as a guarantor for a Future Finance student loan.
Why do you need a guarantor for a Future Finance student loan?
Being young, most uni students haven’t had the opportunity to develop a comprehensive credit or work history, which is why request a guarantor on the loan.
What does being a guarantor mean?
A guarantor agrees to repay your loan if you, the student, defaults. For students, it is often a parent or guardian, but it can be anyone willing to help you out. Parents may find it to be an easy and affordable way of financing their child’s education without having to extend funds directly.
How can a guarantor help you?
Your nominated guarantor can lift financial worries off your shoulders, allowing you to reach your full potential in uni.
Can a student be their own guarantor?
Nope. A student cannot be their own guarantor for their own student loan.
Does your guarantor meet our requirements?
A guarantor must be:
- 25 to 65 years of age
- Permanently resident in the UK. Non-EU citizens need indefinite leave to remain (ILR)
- Minimum of 48 months income history
A guarantor must meet the income and credit history criteria specific to the loan approval. A guarantor does not need to be a homeowner; we do not use a property as security on the loan.
What if your parents or guardians don’t meet our guarantor criteria?
How about siblings? Other family members? Maybe a friend can help you?
What information do we need from the guarantor?
All you need to provide us with is the guarantor name, email and contact phone number. We will then get in touch with the guarantor to ask them to provide further information. However, we do not share this information with the borrower.
When will Future Finance contact your guarantor?
We’ll get in touch with your guarantor to confirm that they have agreed to act as your guarantor. In order to get the loan funded, both you and the guarantor will need to sign agreements. Once the loan is funded, we will email the guarantor to confirm. After that, the guarantor shouldn’t hear from us again, provided the borrower continues to make regular repayments on the loan.
You may also like:
- Student loan guarantors
- What it means to be a guarantor for a student loan
- How does Future Finance make its lending decisions