Who needs a cosigner?
Generally there are two circumstances when a cosigner is needed, even if the borrower has some credit.
One of those times is when the borrower does not have an established credit history which leads to a low credit score. Having a cosigner when applying for private student loans such as a Sallie Mae Signature Loan or a Tuition Answer Loan may increase your odds of being approved.
The second circumstance to use a cosigner would be to obtain a loan with a lower interest rate. The difference in monthly payments on a $10,000 loan can be $50 or more when comparing a 8% interest rate and a 12% interest rate. Also the difference in the accrued interest rate could be as much as $4900 over the life of the loan. Certainly something to give thought to!
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