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Welcome cosigners and potential cosigners!

Thank you for your support of postsecondary education opportunities. At ACPE, we understand that the decision to cosign on a loan is a serious one. We invite you to review the following information and carefully consider your borrowing options.

What you should know about cosigning a loan
  1. Cosigners are often required for first-time students.
  2. Your credit history will be evaluated along with the student’s; the combination of both can give the student a better chance of being approved and in some cases a lower interest rate.
  3. Cosigning a student loan is a long-term commitment; a standard repayment term is 10-years.
  4. You’re jointly and legally responsible for the loan; If the student doesn’t make their payments, it will be your responsibility.


Before You Cosign

Before you cosign, think carefully about your ability to repay the debt and your responsibilities as a cosigner.

Important considerations about being a cosigner:

 As a cosigner, you are agreeing to repay the entire amount of the student loan if the borrower does not pay, or even if the borrower dies or becomes disabled. Review the loan repayment tab to understand the financial obligation you are agreeing to and the monthly payments you would have to make.
  • Cosigned loans may appear on your credit report, and creditors may consider that debt as yours.
  • The loan status is reported to nationwide consumer credit agencies each month. Your credit report will reflect payment delinquencies if neither the primary borrower nor you make timely payments.
  • Cosigning a student loan is usually a long-term commitment. Cosigners cannot be released from the loan obligation. For example, the standard loan term for an Alaska Supplemental Education Loan (ASEL) is 10 years.
  • If the borrower does not pay as agreed, ACPE or its third-party servicer will attempt to collect the debt from them and you. If payments are not made, you may be subject to wage or Permanent Fund Dividend garnishment, liens on your property, and transfer to collections with associated collection costs.
  • Student loans are rarely dischargeable in bankruptcy. If you are the cosigner on someone else's student loan, in most situations you cannot discharge your obligation to repay that loan unless you meet specific undue hardship standards.

 

A cosigner can be a parent, legal guardian, grandparent, spouse, relative, or even a friend.

To be approved as a cosigner, you must:

  • Be a legal adult of 18 years or older
  • Be a U.S. citizen or eligible non-citizen
  • Have a credit history that demonstrates good credit, including meeting specific FICO score requirements for the loan you are cosigning

Cosigner/Borrower Relationship

Be sure to understand the implications to you of cosigning. As a cosigner, you and the primary borrower share the responsibility of repaying the loan. You may need to communicate with the other party about repaying as agreed because if your family member or friend fails to repay as agreed, it will be up to you to do so.

 

When asked to cosign on a loan, there are two primary ways you can accept the invitation.

  1. The quickest option is for you and the primary borrower to complete the loan application together. The systematic process will guide you through completing the borrower and co-borrower portions of the online application all together.
  2. You may also receive an email invitation requesting you to cosign a loan. To accept the invitation, follow the steps provided to apply and submit your application with CampusDoor online. If you prefer to submit a paper application, contact CampusDoor at (855) 210-8183, Monday – Friday 8:00 a.m. to 5:00 p.m. AKST.

 

Alaska law requires that Alaska education loan applicants have a credit history that demonstrates the ability to repay a loan obligation. Each Alaska education loan program has specific credit requirements that must be met in order for an application to be approved.

Alaska Supplemental Education Loan (ASEL)

  • Minimum FICO score of 650*

Alaska Family Education Loan (FEL)

  • FICO credit score of 680 or higher

Alaska Education Refinance Loan

  • Minimum FICO score of 680

* Also requires an absence of adverse credit

For more information on credit, view our Understanding Credit section.

 

As a cosigner, it is important that you stay informed of the status of the loan(s) you cosigned. Both the primary borrower and cosigner are sent repayment disclosures, monthly billing statements, and notices of delinquency when a loan is 30 or more days past due in payment.

Repayment Assistance
Many repayment assistance options such as deferment and forbearance are not available to cosigners. However, it the primary borrower is having trouble making their payments, there are a variety of repayment options that might help. Encourage the borrower to contact their servicer for information and support during times of financial difficulty. For more information, review our Loan Repayment section.