If you’ve applied for a private student loan and were denied, it’s not the end of the road for your college education. You may feel like you won’t be able to attend college, but don’t panic. There are still plenty of potential avenues to pursue when looking for ways to pay for college.
If you apply for a private student loan on your own and are denied, it may be because you have insufficient personal credit history, which is common for full-time college students. Many students in this position will find a qualified co-signer to apply with them. A cosigner could be a parent or other guardian, a grandparent, an older sibling, an uncle or aunt, or anyone who is willing to co-sign with you. By cosigning your loan, they're agreeing to personally step in and help repay the loan in the event you cannot. At the same time, it doesn't remove your role as the primary borrower as both you and the cosigner are equally responsible for repaying the debt.
On the other hand, if you apply with a co-signer and are denied a student loan, you can re-apply with another qualified co-signer. The good news is that there are benefits to serving as a cosigner, and some lenders offer a feature where the co-signer may be released after a certain number of consecutive on-time payments are made. Ask the lender if they offer co-signer release, and if so, what the requirements are for release.
If applying with a co-signer is not an option, you might also consider asking a potential co-signer if they are willing to take out a loan to cover your funding gap. Some lenders offer a private student loan option for parents, guardians, or other willing person to take out on behalf of the student, like the Citizens Bank Student Loan® for Parents. Take time to research those options before asking around, that way you might be able to answer some basic questions they may have.
Here are a few pointers on how you can establish good credit, so that in the future you'll possibly qualify on your own:
If you have questions about the decision on your application, or are interested in learning about other ways to pay for college, call 1-877-452-4147 and speak to a Student Lending Specialist.