Question of the Week

Question: What is the difference between a co-borrower and a co-signer?     

Answer:  A co-borrower is someone who shares in the proceeds of a loan and is required to pay. The borrower and any co-borrowers are jointly and severally liable. A co-borrower is also sometimes referred to as a co-maker.  

A co-signer is someone who assumes full responsibility for repayment of a loan in the event the borrower is unable or unwilling to repay as agreed. A co-signer does not share in the proceeds of the loan. They guarantee payment only upon default. A co-signer is also sometimes referred to as a guarantor.