What is a cosigner?
A cosigner is someone who becomes jointly obligated on a loan with the borrower, and assumes responsibility for the loan if the borrower fails to repay it.
When should I use a cosigner?
If you are concerned about being approved for a private loan, or you do not have 30 months of credit history, you might want to consider strengthening your chances by adding a cosigner.
How can a cosigner help my chances of getting a loan?
With a creditworthy cosigner, you have a greater chance of getting approved and you don't need to reapply. Plus you may even get a lower loan rate because the better credit score between the borrower and cosigner is used to determine your interest rate and fees provided all other criteria are met.
What makes a good cosigner?
Getting your loan is an important key in your collegiate success. When choosing a cosigner, the following factors should be considered:
- Choose someone who doesn't have serious derogatory items on their credit report
- Choose someone who meets their credit obligations (pays their bills)
- Choose someone who's credit is not over burdened with debt
- Choose someone who has at least 30 months of credit history
- Choose someone who has steady employment with income sufficient to meet current debt obligations
Can my 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, but the interest rate is not recalculated if it was based on the cosigner's credit score.
Once the application is submitted, you will receive an immediate credit decision.
Applying as a Cosigner is Easy
Our online application has made applying as a cosigner an easy process that only takes about 15 minutes. With your student's social security number in hand, simply select your state of residency and click "continue" to complete the application provided by our servicing partner, AES.