How Cosigners Work

Learn how cosigners can help you get a VSAC loan

If you’re applying for a student loan, it may be an advantage to have a cosigner on your loan. A cosigner—often a parent—is a person with a good/excellent credit history who supports your education goals and agrees to be held responsible for the loan if you fail to make your monthly payments. Having a cosigner with good or excellent credit may enable you to get a lower interest rate on your loan.

A cosigner:

  • Is equally liable for the debt
  • Is expected to make payments—including any late or collection fees—if the student borrower is unable to pay
  • Receives a bill statement each month, along with the borrower
  • Is reported to the national credit bureaus each month, along with the borrower
  • Must sign all paperwork, along with the borrower


Cosigner Release 

Cosigner release may be available, upon request, to borrowers with a current account who meet lender requirements. This means your cosigner will no longer be responsible for the loan and will no longer have the debt counted on their credit report—freeing up their credit for other needs. Check with your lender, or learn about the opportunities available with VSAC student loans.