The CFPB report includes a borrower who made 36 consecutive on-time payments, asked for her cosigner
to be released from the private loan, and was denied because several payments--to her surprise--were counted as late due to the payment processing delay.
Smith did not notice that the papers named her as the primary noteholder--not as a cosigner
Determining the ability to repay by the borrower and the cosigner
protects our customers against unnecessary borrowing and we believe facilitates successful repayment in the future," says Bare.
Applying with a cosigner
may increase the likelihood of approval and access a more favorable interest rate.
In today's market, young adults will likely need a cosigner
at some point and will turn to their parents for help," said Ken Chaplin, senior vice president of marketing for Experian Consumer Services.
During the last four academic years, more than 90 percent of undergraduate and 75 percent of graduate private student loans included a cosigner
A student borrower must meet established FICO credit score requirements in order to secure a loan without a cosigner
Fourth, having a cosigner
eliminates a person's financial responsibility.
Borrowers approved with a qualified cosigner
can receive an interest rate as low as 1 percentage point below prime.
The loan also includes no pre-payment penalty, no cosigner
release option and a 30-day no-fee return policy.
The program also includes a national program generally available to other graduate students and undergraduate students who, alone or with a cosigner
, meet certain credit underwriting criteria.
Shareholders can anticipate a joint announcement with the letter of intent cosigner