How Cosigners Work

Learn how cosigners can help you get a VSAC loan

If you’re applying for VSAC’s Vermont Advantage Student Loan, you will need 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.

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 VSAC’s credit criteria after 48 months of active repayment. 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. Learn more about the opportunities available with Vermont Advantage Loans >