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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » Why does Sallie Mae require a cosigner for private student loan consolidation even with good credit?

Why does Sallie Mae require a cosigner for private student loan consolidation even with good credit?

It absolutely makes no sense. Even with superior credit you are still paying through the roof!

“If you have a superior credit history and a cosigner on your Private Consolidation Loan (or a cosigner with a superior credit history), your interest rate could be as low as Prime – 0.50% (6.75% APR) with no origination or disbursement fees.

If you have fair credit history and no cosigner, your Private Consolidation Loan interest rate could be Prime + 6.5% (13.75% APR).”

I worked so hard to build up a good FICO score and need a good consolidation rate. My parents have awful FICO scores. What should I do?

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3 Responses to "Why does Sallie Mae require a cosigner for private student loan consolidation even with good credit?"

  1. sallyforthnow says:
    Find a relative to help. Student Loan companies are regularly dealing with students who default. Even if you don’t, they have to make up the difference for the money they are loosing from all the bad loans. And if you default, they want someone else attached to go after. The only thing you might consider is a credit card with a 0% balance transfer rate (6mos. is typical). You can transfer to the card and pay off whatever you can, then transfer to a new card six months later, aka. credit rolling. This takes a lot of discipline but is the easiest way to avoid all interest charges. Most cards have limits on balance transfer amounts so you may need two or three. If you close the accounts after you open new cards, it will improve your FICO too. Also, you don’t need cosigners for cards. Like I said, risky and takes discipline, but it works.
  2. mister ed says:
    because at that low rate they want to cover as many bases as possible to get there money paid back!!!
  3. *Getting Married 6-15-08* says:
    i work with sallie mae
    if they tell you that you need a cosigner youll need one to get this loan. its someone whos also able to pay if you don’t. they need their money back

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