If you want to lock in a low interest rate, but you still haven’t established great credit, or your income is on the lower side, you may need a cosigner on a loan from NFCU. Cosigning a loan is a huge commitment. Cosigners agree to take on your debt if you’re unwilling or unable to pay it.When it comes to student loans, cosigning also can cause issues for the borrower. For example, many student loans are “called due” when a cosigner dies. This means you’ll have a short time to completely pay off your balance, or your loan goes into delinquency- destroying your credit in the process.Whenever possible we recommend not cosigning and not asking for a cosigner. However, student loan debt tends to be a little bit different. If your parent wants to cosign a loan, NFCU may be the right institution for it. They have a standard path for cosigner release.For initial student loans, cosigners can request release after 24 consecutive on-time payments of principal and interest. For consolidation loans, cosigners can request release after just 12 consecutive payments.As long as the borrower meets income and credit criteria, NFCU releases your cosigner at the requested time.
If you’re in the market for loan consolidation, NFCU is a worthy contender for student loan consolidation. However, you should be careful about consolidating Federal student loans. Federal student loans offer protections that private loans don’t. You need to feel confident about your ability to repay before you choose to consolidate.As a student, you should try to avoid taking on private student loan debt if possible. Private debt generally indicates that your chosen school is too expensive for you. However, if you need to take it on to finish your degree, NFCU offers great rates and excellent terms for students.