Information about Cosigners
Why is a cosigner important?
Many students don't have a substantial credit history or have other concerns about being approved for a private student loan, and adding a creditworthy cosigner may help them qualify and also obtain a lower interest rate.
What makes a good cosigner on a loan?
- Have a substantial credit history
- Not have any serious negative items on their credit report
- Meet their credit obligations on time
- Not be over burdened with debt
- Have steady employment and/or income sufficient to meet debt obligations
Can a cosigner be released from the loan?
The cosigner can be released from liability after the first 48 initial, consecutive principal and interest payments are made on time*. The borrower must meet credit criteria on their own at that time.
How is a cosigner added to the loan?
Our online private student loan applications have made applying as a cosigner an easy process that only takes about 15 minutes.
* Request for the cosigner to be released can be made after the first 48 consecutive, on-time payments (not later than ten days after the due date) of principal and interest have been made. The borrower must meet credit criteria on their own at the time of the request. The borrower must also be currently enrolled for automatic deduction of monthly payments from a bank account.