Friday, December 26, 2014

Cosigning For A learner Loan - Pro's and Con's

Citibank Student Loans - Cosigning For A learner Loan - Pro's and Con's

What Are hidden Student Loans?

Private student loans are issued based on credit. This means two things for those applying for a hidden student loan.
The loan will be based on the borrowers prestige score Normally, the better the prestige score, the better the interest rate What this means to you

Cosigning For A learner Loan - Pro's and Con's

Some students advantage by applying for a hidden student loan. The borrower must remember though, if he/she has a cosigner, the cosigner is just as responsible for repayment of the loan as the borrower is. By cosigning your name a loan, you're guaranteeing that you will repay the loan should the borrower fail to make payments.

Cosigning For A learner Loan - Pro's and Con's

A lower interest rate can mean that the borrower will have lower monthly payments. It can also mean the loan can be paid back quicker.

Who needs a cosigner?

Generally there are two circumstances when a consigner is needed, even if the borrower has some credit.

One of those times is when the borrower does not have an established prestige history which leads to a low prestige score. Having a cosigner when applying for hidden student loans such as a Sallie Mae Signature Loan or a Tuition retort Loan may growth your odds of being approved.

The second circumstance to use a consigner would be to fetch a loan with a lower interest rate. The dissimilarity in monthly payments on a ,000 loan can be or more when comparing a 8% interest rate and a 12% interest rate. Also the dissimilarity in the accrued interest rate could be as much as 00 over the life of the loan. Absolutely something to give belief to!

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