When looking at applying for a student loan with a cosigner, you can expect some serious lender benefits. Depending on the lender, some of these benefits include:
Before moving forward and filling out a loan application with one of our lenders, you may want to make sure you have completed all of these free options prior to applying for a private student loan. A few programs that you should look into would be:
If you have exhausted all of the above options, you can select one of the lenders above to work with or head over to our student loans page.
As a cosigner, you’ll share the same responsibility for the loan repayment as the student (primary borrower). Both the cosigner and student can build their credit with repayment of the loan. In the eyes of the law, both the cosigner and student are responsible for any missed payments or late payments over the life of the loan, which can impact both credit reports.
Many students need a cosigner because they do not have a high enough credit score. Young college students, especially those entering their first year of college, are unlikely to have a long credit history (many have never had a credit card). Therefore, most students start college with a lower credit score. Having a creditworthy cosigner who is eligible for a loan could raise the chances of loan approval for a student.
If a student has a low credit score, it is not necessarily a reflection of their creditworthiness. Once the student begins making timely student loan payments, their credit will usually improve.
Becoming a student loan cosigner on a private student loan is different from a Parent PLUS Loan or other forms of federal student aid. Private lenders usually ask for a credit check on a cosigned loan and may have different credit requirements than federal loans.
While federal loan student loan options don’t always cover the full costs of attendance, a private lender can help cover any leftover amounts. Federal loans tend to have a maximum borrowing amount, while a private student loan may offer a larger loan amount.
Some private lenders provide an extended grace period or deferment, giving the student more time to start paying off the loan. Because a cosigned loan means both you and the student are financially responsible for the loan amount, any missed payments may impact your credit score.