What is a cosigner?

If you are applying for a private student loan then you need to know about a very important person that you may require in order to be approved; the cosigner.

• The cosigner is the person that signs the loan with you.

• The credit of the cosigner is weighed on the application with yours

• Your combined credit will dictate the interest rate of this loan.  The better the cosigner’s credit, the lower the rate will be.

• Virtually anyone can cosign with you.  This includes parents, step-parents, grandparents, aunts and uncles.  Close friends can also cosign.

• Please keep in mind that a cosigner is not a reference.  The cosigner takes responsibility of the repayment of the loan if you do not pay it back.

• Some private loans allow for the cosigner to be released from the contract pending a specific number of on time payments made.  This is a valuable feature and you should confirm this with your lender during the application process. 

• Remember to thank your cosigner in the best way possible. Complete your degree and repay your loan on time so they do not become responsible for the debt!