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Benefits of Having a Co-signer?
Do most applicants have a co-signer?
Yes, since most applicants are students with little or no credit history, most applicants need one. If you have a qualified1 co-signer, you can't be turned down for credit reasons.
Will having a co-signer help?
Yes. With a strong co-signer, you're more likely to get fast approval and a check mailed directly to you in as few as 5 business days -- even if you don't have an established credit history, even if you've had credit problems in the past. And a co-signer with excellent credit could lower your loan rates and fees.
Do I need a co-signer?
Most applicants need a co-signer. As long as your co-signer is qualified, you generally cannot be turned down for credit reasons.2
You do not need a co-signer if you are creditworthy and have all of the following:
- An employment history of at least two years (if you are self-employed, your business must be at least two years old),
- Proof of current income,
- A satisfactory credit history of at least 21 months,
- Addresses where you have lived for the previous 12 months, and
- U.S. citizenship or permanent resident status in the U.S. for the previous two years.
International students or applicants that do not meet these requirements will need to apply with a qualified creditworthy U.S. citizen or permanent resident co-signer to be approved.
Co-signer release
To help you build your own credit, a co-signer release benefit is available to borrowers who make their first 48 payments on time and who elect to make automated payments.3
Copyright (C) 2007 GradeSaver Loans LLC. All rights reserved.
The lender for Gradesaver Student Loans is RBS Citizens, N.A., Member FDIC and Equal Opportunity Lender. RBS Citizens, N.A. may sell your student loan to a third party. RBS Citizens, N.A. will only sell your student loan if the third party agrees to honor all of RBS Citizens, N.A.'s promises to you, including all promised benefits that you will receive or might become eligible for during the loan repayment period.
- A qualified co-signer is anyone who applies and meets the underwriting criteria for this loan program. Applicant should be prepared to disclose if an applicant or the applicant's co-signer has defaulted on a student loan or declared bankruptcy.
- Student applicants cannot be listed as a debtor in a pending bankruptcy proceeding.
- Co-signers will be eligible for co-signer release upon request if (1) the first 48 payments of principal and interest are paid on time, (2) at any time prior to the 48th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 48th payment, and