Why Cosigners Are Important
Why Cosigners Are Important
Most students have limited credit history and income, but that’s ok. You can add a cosigner with a solid financial history and good credit, which may improve your chances of loan approval and sometimes even qualify you for a lower interest rate. You and your cosigner can even see what rates and terms you prequalify1 for before submitting your full application and it won’t impact your credit score.
Did You Know?
A Custom Choice loan application is four times more likely to be approved with a qualified cosigner.
A cosigner with a strong credit history may increase your chances of getting approved and getting a lower rate.
Learn About Cosigners
What is a cosigner?
A cosigner is an additional applicant besides the student, such as a parent, guardian, grandparent, or family friend, who will bear the same legal responsibility for the loan as the student.
Who needs a cosigner?
You may need a cosigner for your Custom Choice loan if you don’t have a substantial credit history or income. Adding a creditworthy cosigner may help you qualify and also obtain a lower interest rate. On average 3 out of 4 approved applicants have a cosigner.
Can a cosigner be released from your Custom Choice loan?
Unlike some of our competitors, we do offer cosigner release.2 A cosigner helps you short-term, but with the power of your education you’ll eventually not need their help.
Can a cosigner apply for a Custom Choice loan?
Either the cosigner or the student can begin the application and then invite the other person to prequalify1 and apply for the loan. If you aren’t together, we’ve made it super easy to invite the other applicant to apply via email.
Who makes a good cosigner on a loan?
A good cosigner:
- Has a substantial credit history
- Pays bills on time
- Does not have a disproportionate amount of debt compared to their income
- Has steady employment (including self-employment) and/or income sufficient to meet debt obligations
Learn About Cosigners
What is a cosigner?
A cosigner is an additional applicant besides the student, such as a parent, guardian, grandparent, or family friend, who will bear the same legal responsibility for the loan as the student.
Who needs a cosigner?
You may need a cosigner for your Custom Choice loan if you don’t have a substantial credit history or income. Adding a creditworthy cosigner may help you qualify and also obtain a lower interest rate. On average 3 out of 4 approved applicants have a cosigner.
Can a cosigner be released from your Custom Choice loan?
Unlike some of our competitors, we do offer cosigner release.2 A cosigner helps you short-term, but with the power of your education you’ll eventually not need their help.
Can a cosigner apply for a Custom Choice loan?
Either the cosigner or the student can begin the application and then invite the other person to prequalify1 and apply for the loan. If you aren’t together, we’ve made it super easy to invite the other applicant to apply via email.
Who makes a good cosigner on a loan?
A good cosigner:
- Has a substantial credit history
- Pays bills on time
- Does not have a disproportionate amount of debt compared to their income
- Has steady employment (including self-employment) and/or income sufficient to meet debt obligations
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Cognition Financial
200 Clarendon Street, 3rd Floor
Boston, MA 02116
Before applying for a private student loan, Citizens and Cognition Financial recommend comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans.
The Custom Choice Loan® is made by Citizens (“Lender”). All loans are subject to individual approval and adherence to Lender’s underwriting guidelines. Program restrictions and other terms and conditions apply. LENDER AND COGNITION FINANCIAL CORPORATION EACH RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. TERMS, CONDITIONS AND RATES ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.
1. In order to estimate the rates and loan options you prequalify for, Citizens will perform a soft credit inquiry, as authorized by you. Soft credit inquiries do not affect your credit. If you prequalify, the rates and loan options offered to you are estimates only. Once you choose your loan options and submit your application, Citizens will perform a hard credit inquiry. Loan approval, options, and final rate depend on the verification of information provided on your application, and information obtained from the hard credit inquiry (and any cosigner’s hard credit inquiry).
2. A cosigner may be released from the loan upon request to the Servicer, provided that the student borrower has met credit and other criteria, and 36 consecutive monthly principal and interest payments have been received by the Servicer within 10 calendar days after their due date. Late payment(s), or the use of a deferment or forbearance will reset the number of consecutive principal and interest payments to zero. Use of an approved alternative repayment plan will disqualify the loan from being eligible for this benefit.