Private student loans* - All about cosigners
You can apply for a private student loan on your own or with a cosigner, which may be important because this type of loan is credit-based. That means, if you have a good credit score, you can get approved for a private student loan on your own. If you have a poor credit score or no credit, a qualified cosigner may 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 qualified cosigner may help you possibly get a better interest rate. That’s because having a cosigner means your combined credit may be higher, and the better your overall credit is, the more likely it is that you’ll qualify for a lower interest rate.
Applying for a private student loan with a cosigner
Although a cosigner is not necessary or required to apply for a private student loan, a qualified cosigner may help you get approved for a private student loan and possibly help you qualify for a better interest rate. Your cosigner should have a good credit history and be able to qualify for the loan without you. Student borrowers and cosigners are equally responsible for repayment of the loan.
Don’t rule out using a cosigner just because you have good credit. Even with good credit, you may be able to qualify for a lower interest rate on your private student loan with a qualified cosigner.
Applying for a private student loan without a cosigner
You don’t need a cosigner to apply — you can apply for a private student loan without a cosigner. If you have good credit you can qualify for a competitive interest rate, but understand that if you have a qualified cosigner, your interest rate could be even lower than if you applied on your own.
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, among other things:
- Creditworthy
- A U.S. citizen or permanent resident
Responsibilities of a cosigner
Cosigners are equally responsible for your private student loan. Their credit will be negatively affected if payments are not made on time.
You can affect your cosigner's credit
Your private student loan will likely 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. According to the Federal Trade Commission, your credit report could influence your purchasing power, as well as your opportunity to get a job, rent an apartment or buy insurance.
To learn more about private student loans, visit ChaseStudentLoans.com.
*Important Information: Private loans, like the Chase Select loan, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.
Chase Select loans are subject to credit approval, receipt of a completed and signed loan application/promissory note and self-certification form, verification of application information, acceptance of loan terms, and school certification of loan amount and student’s enrollment at a Chase Select-participating school.
Chase currently services its Chase Select loans and does not sell them to another lender.
This information was current as of 07/01/2011 and is subject to change. Contact Chase for current product information.
