Cosigner


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Cosigner

A term referring to a person, other than the principal borrower, who signs for a loan. The cosigner(s) assumes equal liability for the loan.

Cosigner

A third party to a loan who provides a guarantee that a loan will be repaid. The guarantee by the cosigner reduces the risk that the lender will lose the money he/she has distributed to the borrower. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability for it. A cosigner may be an institution, but is often a relative or friend of the borrower, especially for personal loans. Persons with little or poor credit history sometimes cannot receive a loan without a cosigner. See also: Surety.

cosigner

A person who signs a promissory note in such a capacity that he or she has equal and primary liability with another. Contrast with a guarantor, who is liable only if the original obligor defaults. A cosigner must list the promissory note as a liability on financial statements; a guarantor has only contingent liability which may never ripen into full liability.

References in periodicals archive ?
No in-school minimum payment or Deferred Repayment Option: No minimum payment is required while in school, though students and cosigners receive monthly statements on accruing interest, an updated balance, and information on how to make a payment.
Survey results indicate that two in three Millennials needed a cosigner in the past, which most often was for college loans (35 percent) or residential leases (32 percent).
The Report shows that private student loans, which involve credit-based underwriting, a documented ability to repay, and a high percentage of cosigners, perform significantly better than federal loans and continue to show positive performance trends in terms of repayment, delinquencies and charge-offs.
Borrowers approved without a qualified cosigner can receive an interest rate as low as 0.
Consumers under the age of 21 must have a cosigner or an independent means of repaying the debt (such as a job).
Students can borrow up to $25,000 annually, with funds disbursed directly to the student and cosigner, if any.
THE NATION'S PREMIERE COSIGNER FOR APARTMENTS AND RENTAL HOMES RECEIVES PERMISSION FROM THE SEC, TO REGISTER EXISTING COMMON STOCK
If the payment history is good the cosigner is released, if there were payment issues the cosigner stays on and continues charging a fee to the applicant.
Fact: Studies show that 75 percent of the time, the creditor approaches the cosigner for payment, because they seek payment from the person who offers the best chance of repaying the debt.
8% of the loans are made to creditworthy borrowers either on their own or with a cosigner.
Even if students have good credit, a cosigner may help them qualify for lower rates and fees.
Newest Debt Management Tool Now Features Zero Fees for Customers Who Secure a Cosigner