Cosigner 101

Although a cosigner is not necessary or required to apply for a private student loan, a qualified cosigner may increase the likelihood of approval and may result in a better interest rate.*

Benefits of having a cosigner

Applying for a private student loan without a cosigner may be more expensive in the long run because your interest rate may end up being higher than the one you might have otherwise received if you had applied with a qualified cosigner.

If you have no credit history or a low credit score, a qualified cosigner may help you get approved for a loan you would not otherwise qualify for on your own. It may be difficult to be approved for a private student loan if you have no credit history and no qualified cosigner.

Responsibilities of a cosigner

Cosigners are equally responsible for paying back your private student loan. Their credit will be affected if payments are not made on time.

Don't forget about federal student loans - no cosigner necessary

Private student loans should be used only after exhausting federal loans, grants and other financial aid options first. A cosigner is not necessary for federal student loans. Federal Stafford, PLUS and consolidation loans are now available solely from the U.S. Department of Education's Direct Loan program.

*Important Information: Private loans, like the Chase Select loan, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

Chase Select loans are subject to credit approval, receipt of a completed and signed loan application/promissory note and self-certification form, verification of application information, acceptance of loan terms, and school certification of loan amount and student's enrollment at a Chase Select-participating school.

Chase currently services its Chase Select loans and does not sell them to another lender.

This information was current as of xx/xx/2012.