Private student loans - All about cosigners
You can apply for a private student loan on your own or with a cosigner because this type of loan is credit-based. That means, if you have a good credit score, you can get approval for a private student loan. If you have a low credit score, a cosigner can improve your chances of getting approved.
Even if you have good credit and can get approved for a private student loan on your own, a cosigner may help you get a better interest rate. That's because having a cosigner means your combined credit score for the loan may be higher, and the better your credit score is, the lower your interest rate will be.
Applying for a private student loan with a cosigner
Applying with a creditworthy cosigner may help you get approved for a private student loan that you wouldn't have been approved for on your own. Your cosigner must have a good credit history and be able to qualify for the loan without you.
Don't rule out using a cosigner just because you have good credit. Even with good credit, you may be able to get a lower interest rate on your private student loan with a creditworthy cosigner.
Applying for a private student loan without a cosigner
If you have good credit, you can apply for a private student loan without a cosigner. Your good credit can help you get a good interest rate, but understand that if you have a cosigner, your interest rate could be even lower.
Cosigner eligibility
Just like you have eligibility requirements to get approved for a private student loan, your cosigner has certain criteria as well. Your cosigner must be:
- Creditworthy
- A U.S. citizen or permanent resident
Responsibilities of a cosigner
Cosigners are responsible for making sure you pay back your private student loan. If you don't pay back your loan, the cosigner is responsible for covering what you owe. Because cosigning a loan appears on your cosigner's credit report, it can impact whether or not they are eligible for additional loans or credit cards.
You can affect your cosigner's credit
Your private student loan will appear on your cosigner's credit report. You can help your cosigner maintain a good credit score by paying your private student loan on time. You will also help build a good credit history for yourself by making on time payments. When you miss or make late payments on your private student loan, it will negatively impact your cosigner's credit report-and yours too. If you fail to make a payment, the consigner has the option to either pay the lender themselves or let their credit suffer.
To learn more about private student loans, visit ChaseStudentLoans.com.
*As you determine the best way to finance your education, you should consider the full range of student financial aid options available. Private loans, like the Chase Private Student Loan, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.
All loans subject to submission of a completed application, and other required documentation and verification. Loans subject to credit approval.
Including a creditworthy U.S. cosigner may help students qualify for a Chase Private Student Loan and may help reduce the interest rate and/or loan costs.
