Cosigner Information

You don’t have to have a cosigner to apply for an AbeSM loan.
That said, there are several reasons why it’s a really good idea to have one.

A cosigner significantly increases your approval chances.

Abe loans are made based on credit. Yet very few students have used credit enough to have a credit history and a good credit score, which can make it difficult to get approved. Having a cosigner with healthy credit on your loan will make approval much more likely. A cosigner can be a parent, grandparent, aunt or uncle, guardian, or any responsible adult who believes in your dream of going to college.

A cosigner with a good credit history may get a better rate.

Lenders use credit history, represented by what’s called a FICO score, as one factor for calculating the rate on the loan. A cosigner with a good FICO score may help you get a lower rate.

Cosigner income is also a factor.

Responsible lenders do everything possible to make sure borrowers can afford to repay a loan. Since a cosigner is also responsible for the loan, his or her income improves your chances of approval.

Who can be my cosigner?

While most cosigners are typically the student’s parents or grandparents, just about any guardian, mentor, or extended family member (think aunt or uncle) can be a cosigner on an Abe loan.1

Early Cosigner Release2

Most students have little or no credit history and therefore apply with a cosigner. Once you’re financially able to handle your loan on your own, the cosigner can be released upon request. With Abe, this can happen after making only 12 months of on-time principal and interest payments.

Some private student loan providers make you wait until you’re halfway through repayment (i.e., on a 10-year loan, the cosigner can’t be released for five years) while others make you wait at least two years.