Having a creditworthy cosigner for your Sallie Mae student loan drastically increases your chance of loan approval from 30% to 70%, so although it is not always required, it can really increase your ability to get a loan. Since many students have not yet had the opportunity to build their credit, having a cosigner can help you secure your student loan and help you build credit.
It can also help you save money. If you have a cosigner, you will save 50 basis points on your loan. That is .5% interest savings, which can really add up. Also, your cosigner does not need to stay connected to your loan forever. Once you have made 12 consecutive payments on time, your cosigner is released from the loan!
To review:
- Increase you chance of getting a loan by 40%
- Save .5% interest on your loan
- Release your cosigner in just 12 months after graduating
Having a cosigner may not be necessary, but it certainly offers advantages! The general requirements for a cosigner include:
- Must be the age of majority in their home state
- Must be a U.S. citizen or permanent resident
- Must be creditworthy
- Must be able to help repay the loan if necessary
NOTE: A cosigner does not have to be a parent. A cosigner can be a grandparent, aunt, uncle, or a friend or colleague. It does not have to be a family member.
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