Do You Need A Cosigner?

Co-Signer: Do I Need One?

When applying to refinance your student loan or obtain a new one, your lender may require a cosigner. If this happens to you, don’t worry. Many applicants need a cosigner and it is typical. Here is what you need to know.

What is a cosigner?

If you have a limited credit history, you may need another creditworthy person (e.g., a parent, spouse, relative or friend supportive of your educational goals) to help you qualify for a loan. A creditworthy cosigner is one who has strong credit and an ability to repay the student loan.

The benefit of a cosigner is that a lender considers the income and credit history of both you and the cosigner, which improves your chances of being approved for a student loan. A cosigner is equally responsible with you for the student loan obligation. You can learn more about which lenders offer cosigners and other benefits.

Compare The Best Student Loan Refinance Rates For 2020

Lender
APR
Minimum Credit
3.21% – 6.67%
650

Overview

KeyValue
Variable Rates:3.21% – 6.67%
Fixed Rates:3.21% – 6.67%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5-20 years
Borrower Residency:All States except DE, KY, NV
Hardship Deferment:Yes
Co-signer Option:No
2.39% – 6.69%
680

Overview

KeyValue
Variable Rates:2.39% – 6.01%
Fixed Rates:3.30% – 6.69%
Minimum Credit Score:680
Minimum Income:$35,000
Fees:None
Minimum Loan Amount:$15,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.99% – 7.27%

660

Overview

KeyValue
Variable Rates:1.99% – 7.10%
Fixed Rates:2.88% – 7.27%
Minimum Credit Score:660
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5 – 20 years
Borrower Residency:All states
Hardship Deferment:Varies
Co-signer Option:Yes

3.21% – 6.67%
650

Overview

KeyValue
Variable Rates:3.21% – 6.67%
Fixed Rates:3.49% – 6.67%
Minimum Credit Score:650
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000 ($10,000 in CA)

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states
Hardship Deferment:Yes
Co-signer Option:Yes

1.99% – 7.02%
660

Overview

KeyValue
Variable Rates:1.99% – 6.65%
Fixed Rates:3.50% – 7.02%
Minimum Credit Score:660
Minimum Income:None
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All States
Hardship Deferment:Yes
Co-signer Option:Yes

1.95% – 3.85%

660

Overview

KeyValue
Overall Rate:1.95% – 3.85%
Variable Rates:
Fixed Rates:1.95% – 3.85%
Minimum Credit Score:None
Minimum Income:None
Fees:None
Minimum Loan Amount:$25,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15 years
Borrower Residency:Must live near a branch in California; New York City; Boston; Greenwich, Connecticut; Palm Beach, Florida; Portland, Oregon; or Jackson, Wyoming
Hardship Deferment:No
Co-signer Option:Yes
2.70% – 7.75%
680

Overview

KeyValue
Variable Rates:2.70% – 6.75%
Fixed Rates:3.39% – 7.75%
Minimum Credit Score:680
Minimum Income:$24,000
Fees:None
Minimum Loan Amount:$5,000

Details

KeyValue
Eligible Loans:Private & Federal
Eligible Degrees:Undergraduate & Graduate
Loan Terms:5, 7, 10, 15, 20 years
Borrower Residency:All states, except ME, ND, NV, RI, WV
Hardship Deferment:Yes
Co-signer Option:Yes

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What is a cosigner release?

Once you have been approved for a refinanced student loan or new student loan, your cosigner may not want to be financially responsible for your student loan. In this case, some lenders will release the cosigner from his or her obligations to repay the student loan. This typically occurs after you have made a certain number of on-time monthly payments.

After the cosigner is released from the student loan, you will have sole financial responsibility for the student loan. Lenders will also want to assess your credit to ensure that you can repay the student loan on your own. You can learn more about which lenders offer cosigner releases and other benefits.

What are the requirements for a cosigner release?

While each lender has its own underwriting criteria, you will have to be able to demonstrate to y lender that once your cosigner is released that you can repay the student loan on your own. Here are some of the most common requirements:

  • You must have graduated from college
  • You must have made a certain minimum number of student loan repayments, including principal and interest (e.g., 12-36 monthly payments)
  • You are employed and meet a certain minimum income threshold
  • Your credit meets the underwriting standards of the lender

Benefits of cosigner release

Most of the benefits are for the cosigner who can be released.

  • No further obligations to repay the student loan (sigh of relief)
  • Credit score improvement
  • Funds available to help co-sign other student loans (e.g., other college-bound children)

The borrower benefits as well. Yes, it can be a little scary to have sole responsibility for paying off student loans. But, it can be a confidence builder to know that you are financially responsible and have increased your independence.

Compare rates and pay off student loans faster

With student loan refinancing, you can combine existing federal and private student loans into a single student loan with a personalized lower interest rate and lower monthly payment.

Find a new student loan interest rate in only 2 minutes. Your credit score is not impacted when you view a new rate.
These are our highest-rated student loan refinancing options for 2019.

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