Private student loans are similar to mortgages or auto loans in the sense that the lending institution must be sure you have steady income and a reasonably good credit record before they'll lend you money. Since most undergraduate students don’t have established credit scores or steady incomes, many won’t qualify for a loan on their own. If they do, they likely won’t qualify for the best rates.
Students will likely need to apply for student loans with a cosigner to be approved and receive the lowest possible rates. Though parents are the most common cosigners, a cosigner can be any trusted adult who is willing and financially qualified. Grandparents, aunts, uncles, siblings and cousins are just a few examples.
Before you decide whether or not to become a cosigner, you might want to take the following aspects of cosigning a student loan into account:
Rather than cosigning a student loan, some parents, guardians or other trusted adults choose to take out a parent loan on a student’s behalf. With parent loans, the responsibility for repayment does not fall on the student, only the borrower. The Citizens Bank Student Loan™ for Parents is a private parent student loan that offers competitive rates along with flexible terms and repayment options. For more information about cosigning a student loan vs. taking out a parent student loan call 1-888-411-0266 and speak to one of our Student Lending Specialists.
|Helpful Tools & Information|
|Student Loan Glossary||An easy-to-use guide for the terms you’ll encounter in the student loan process.||Learn more|
|FAQs||Answers to frequently asked questions about the Education Refinance Loan.||Learn more|
|Student Loan Calculator||Use our loan calculator to estimate payments and total costs of borrowing.||Learn More|