A co-signer is defined as which of the following?

• A. The lender
• B. An insurance policy
• C. Another adult who takes responsibility for your debt if you cannot afford it
• D. The primary borrower

Answer: (C)

A co-signer is someone who shares responsibility for a debt from the start. They sign the loan along with the borrower and are legally obligated to repay the loan if the borrower cannot. This arrangement lowers the lender’s risk and can help the borrower qualify for credit or obtain a better rate. The co-signer’s credit is at stake—missed payments affect their credit as well, and they can be pursued for repayment if the debt isn’t paid.

It's not the lender, which is the entity providing the funds. It’s not an insurance policy, which is a separate product and does not guarantee loan repayment. It’s not the primary borrower, who is the person receiving the funds; the co-signer is someone else who agrees to take on the responsibility.