What is a cosigner?
A cosigner is a parent, grandparent, guardian or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you. The cosigner must be a U.S. citizen or Permanent Resident.
Is a cosigner required to obtain a Private Student Loan Consolidation?
In some cases, a cosigner is required for a private student loan consolidation. A creditworthy cosigner increases the chance of your private student consolidation loan approval and may lead to a lower private student consolidation loan rate. Creditworthy borrowers that meet the credit requirements private student loan consolidation may apply without a cosigner.
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Will the cosigner’s credit record be affected?
Yes, in a cosigned private student consolidation loan both the borrower and the cosigner are jointly liable for making all loan payments. The private student consolidation loan will appear on both the borrower and cosigner’s credit report.
Is the cosigner responsible for repaying the private student consolidation loan?
If the borrower fails to repay the private student consolidation loan, then the cosigner is responsible for repaying the loan. However, the cosigner may be released of any obligation to pay the private student consolidation loan once the borrower is able to meet certain criteria to determine creditworthiness and makes 12 consecutive and on-time full principal and interest payments.