What are a cosigner’s responsibilities?
A cosigner’s responsibility is to ensure the borrower is paying back the loan. If the borrower is not making payments the cosigner is then responsible for those payments. Missed or late payments can negatively affect both the borrower’s and cosigner’s credit.
Will having a cosigner affect my credit score or interest rate?
Having a cosigner will not affect your interest rate. However, both the borrower’s and cosigner’s credit score may be affected by taking out a student loan.
Can a cosigner be denied from cosigning a loan?
If a cosigner does not meet BND’s current credit criteria they can be denied from cosigning a loan.
How can a cosigner be removed from a student loan?
For BND student loans, specifically, a cosigner can be released from a student loan after the borrower has made 24 consecutive on-time payments and the borrower is found creditworthy based on the credit criteria in effect at the time the cosigner release request is made. A cosigner can be released from a BND refinance/consolidation loan after 48 consecutive on-time payments and the borrower is found creditworthy based on the credit criteria in effect at the time the cosigner release request is made.
What is a cosigner release?
A cosigner release is an opportunity for the cosigner on the loan to be released from responsibility of the loan.
