Information about Cosigners
Why is a cosigner important?
Many students don't have a substantial credit history or have other concerns about being approved for a private student loan, and adding a creditworthy cosigner may help them qualify and also obtain a lower interest rate.
What makes a good cosigner on a loan?
A good cosigner:
- Has a substantial credit history
- Does not have any serious negative items on their credit report
- Meets their credit obligations on time
- Is not over burdened with debt
- Has steady employment and/or income sufficient to meet debt obligations
Can a cosigner be released from the loan?
The cosigner can be released from liability after the first 48 initial, consecutive principal and interest payments are made on time*. The borrower must meet credit criteria on their own at that time.
How is a cosigner added to the loan?
Applying as a cosigner takes about 15 minutes. Either the cosigner or the student can start the application the EasyInviteSM tool, within the online application, allows the cosigner or the student to be invited to the application.
* Request for the cosigner to be released can be made after the first 48 consecutive, on-time payments (not later than ten days after the due date) of principal and interest have been made. The borrower must meet credit criteria on their own at the time of the request. The borrower must also be currently enrolled for automatic deduction of monthly payments from a bank account.
EasyInvite is a registered service mark of First Marblehead Corporation.