During your student loan application, you might be asked to provide a cosigner, or someone who co-signs for your loan and commits to paying the balance in the event you, for whatever reason, cannot. This sounds like a big commitment, and it is, but there are also benefits to having a cosigner for your loans. Here are two main benefits for borrowers who have cosigners on their CommonBond Grad Refinance Loans:
1. A cosigner can potentially lower your interest rate
Even if you're approved for a loan based on your own credit profile, your rate could be improved by bringing on a cosigner who has a stronger credit profile than you. This could mean thousands in savings, even if your cosigner lowers your rate by only 1%. (On a 15-year, $100,000 loan, the difference in the total interest you pay on a 6% rate versus a 7% rate is about $10,000.)
2. A cosigner doesn't need to be forever
If you make consecutive, on-time payments for three years at CommonBond, you can request that your cosigner be released. If at that point in time you meet our underwriting criteria for your particular loan option without your cosigner, we can release the cosigner from the loan. If you want more information or wish to initiate the request process, contact the Care Team at firstname.lastname@example.org or call (800) 975-7812.
Remember that you can ask just about anyone to apply as your cosigner, including a relative or a friend, a retiree or a self-employed entrepreneur, etc. Finally, anyone can apply with a cosigner at CommonBond. If you've already received a rate quote, simply let the Care Team know you'd like to add a cosigner.