Cosigner

Although a cosigner is not necessary to apply for a private student loan, a qualified cosigner may help you get approved for a private student loan and possibly get a better interest rate.*

Benefits of having a cosigner for your student loan

Applying for a private student loan without a cosigner is always an option; however, you must have an established credit history and meet all of the minimum qualifying requirements.

Be aware that applying for a private student loan without a cosigner may be more expensive in the long run because your interest rate can end up being higher than the one you may have received if you had a qualified cosigner.

If you have no credit history or a low credit score, a cosigner may help you get approved for a loan you would not qualify for on your own. It may be difficult to get approved for a private student loan if you have no credit history and no qualified cosigner.

Don’t rule out using a cosigner for your private student loan 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.

Responsibilities of a cosigner

Consigners become responsible for your private student loan if you are unable to make the payments. Their credit will be affected if you do not make your payments on time, so they must assume the payments to make sure your student loan doesn’t have an adverse affect on their credit score.

If you don’t have a cosigner, the responsibility is entirely yours to make the scheduled student loan payments on time.

Don’t forget about federal student loans – no cosigner necessary

Private student loans should be used only after exhausting federal loans and other financial aid options first. A cosigner is not necessary for federal student loans. As a complement to federal loan programs and other financial aid, private student loans should be used to pay for education-related financial gaps

*Important Information: As students determine the best way to finance their education, they should consider the full range of student financial aid options available. Private loans, like the Chase Select Private Student 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 Application/Promissory Note, verification of application information and school certification of student’s enrollment at a participating school.

Chase services its Chase Select loans and does not sell them to another lender.

Upon request by the primary borrower, cosigners are eligible to be released from the loan after any 36 consecutive payments of principal and interest are paid on time. The borrower must meet credit criteria at the time of cosigner release. Other terms and conditions apply. Benefit programs are subject to change.

This information was current as of 05/22/2009 and is subject to change. Contact Chase for the most up-to-date terms.