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What to Do If You’re Denied a Student Loan With a Cosigner

If your student loan application with a cosigner was turned down, you have several options to move forward, including finding a new cosigner and improving your own credit.

Taylor Medine Taylor Medine Edited by Ashley Harrison Updated October 25, 2022

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

If you’re on your way to college or graduate school but have been turned down for a student loan (even with a cosigner), it doesn’t mean you’re out of options to pay for school.

Here’s what to do if you were denied a student loan with a cosigner (or without):

  • What to do if you’ve been denied a student loan
  • What to do if you’ve been denied a student loan (with a cosigner)
  • How to find a cosigner
  • What lenders look for in a student loan cosigner
  • Most students use a cosigner to get a private student loan

What to do if you’ve been denied a student loan

Private student loan lenders might deny applications for a variety of reasons, including credit and other financial issues. If you’ve applied for a loan on your own and had your application denied, you still have several paths to move forward.

Here are possible next steps:

  1. Complete the FAFSA. The Free Application for Federal Student Aid (FAFSA) is used to apply for federal student aid, including federal student loans that, unlike private loans, don’t require a credit check. It’s worth filling out the FAFSA even if you don’t think you’ll qualify for student loans because you might qualify for other aid like grants or scholarships.
  2. Improve your credit. Your credit is an important part of qualifying for private student loans. If you work to raise your credit score, you can improve your odds of getting approved on a future application. The most important factors that make up your credit score are making on-time payments and keeping your revolving account balances low (such as credit card balances).
  3. Find a cosigner. If you apply for a private student loan with a creditworthy cosigner, their good credit could help you get approved. Having a cosigner might also mean get you better loan terms than you’d get on your own, such as a lower interest rate. But keep in mind that this also means your cosigner is responsible for paying the loan back if you stop making payments.
  4. Look for scholarships and grants. There are countless college scholarships and grants available to both undergraduate and graduate students. These are essentially free money for school that you don’t have to pay back, so it’s worth taking the time to apply for as many as you might qualify for.
Tip: When in doubt, talk to your school’s financial aid office to learn more about your options. They might even have connections to land you a part-time job on campus or know about scholarships you might not have found elsewhere.

Learn More: 3 Best Private Student Loans That Don’t Require a Cosigner

What to do if you’ve been denied a student loan (with a cosigner)

It might feel like a double whammy if you’re denied a student loan with a cosigner — but not all hope is lost. Here are some strategies that might help you get that loan:

  • Encourage your cosigner to check their credit. Sometimes credit reports contain errors, meaning your cosigner’s credit score might not be correct. If your cosigner finds any mistakes and files a dispute with the appropriate credit bureau, their credit score could go up.
  • Find a new cosigner. If your first cosigner doesn’t succeed, try again. Consider asking someone else with good credit — such as a parent, another relative, or a trusted friend — to cosign your loan. Just remember that cosigning can be a risk, so you might not get an enthusiastic response.
  • Build your own credit. It takes time to build or repair credit, so this isn’t a quick fix. But if you’ve run out of other financing options, working on your own credit might be your best bet. Some potential ways to improve your credit include paying all of your bills on time and paying down credit balances (or better yet, paying them off each month) to establish a positive credit history and reduce your credit utilization.
  • Apply for federal or other need-based aid. If your options for getting a private student loan with a cosigner are limited, federal or other need-based student aid may be your best financial resource since your credit is usually not a deciding factor.
Keep in mind: Most federal student loans — including both Direct Subsidized and Unsubsidized Loans — don’t require a credit check. However, Direct PLUS Loans do. These loans come in two categories: Grad PLUS Loans for students who want to pay for grad school and Parent PLUS Loans for parents who want to cover education costs for their child.

To qualify for a PLUS Loan, you can’t have an adverse credit history — which means your credit report must not contain negative information (such as defaults or bankruptcies) for the past five years. If you aren’t eligible for a PLUS Loan on your own, you could consider applying with an endorser who doesn’t have an adverse credit history, which is similar to a cosigner.

If you decide to reapply for a private student loan, be sure to shop around and compare your options from as many lenders as possible to find the right loan for you. Keep in mind that several private lenders offer loans to borrowers with less-than-perfect credit, which could help you get approved.

Credible makes this process easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes. Keep in mind that while some of these lenders have high required minimum credit scores, you might be able to qualify if you apply with a creditworthy cosigner.

LenderFixed rates from (APR)Variable rates from (APR)Min. credit scoreCosigner release offered?


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.62%+10 5.74%+10 Does not discloseYes, after 12 months
  • Fixed APR: 4.62%+10
  • Variable APR: 5.74%+10
  • Min. credit score: Does not disclose
  • Loan amount: $2,001 to $400,000
  • Loan terms (years): 5, 7, 10, 12, 15, 20
  • Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward
  • Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 12 on-time principal and interest payments
  • Loan servicer: Launch Servicing, LLC


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.99%+1 4.89%+ 720Yes, after 36 months
  • Fixed APR: 4.99%+1
  • Variable APR: 4.89%+
  • Min. credit score: 720
  • Loan amount: $1,000 to $350,000
  • Loan terms (years): 5, 10, 15
  • Loan types: Any private or federal student loan
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay, loyalty
  • Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner)
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: Firstmark Services


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.49%+2,3
4.49%+2,3 Does not discloseYes, after 24 months
  • Fixed APR: 4.49%+2,3
  • Variable APR: 4.49%+2,3
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 up to cost of attendance
  • Loan terms (years): 5, 8, 10, 15, 20
  • Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 24 months
  • Loan servicer: College Ave Servicing LLC

custom choice

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details

3.65%+ 5.46%+ Does not discloseYes, after 36 months
  • Fixed APR: 3.65%+
  • Variable APR: 5.46%+
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit)
  • Loan terms (years): 7, 10, 15
  • Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident.
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: American Education Services
  • Min. income: Does not disclose

edvestinu student loan refinance

Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
7.52%+7 6.89%+7 750Yes, after 36 months
  • Fixed APR: 7.52%+7
  • Variable APR: 6.89%+7
  • Min. credit score: 750
  • Loan amount: $1,000 to $200,000
  • Loan terms (years): 7, 10, 15
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and have a minimum income of $30,000.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 36 months
  • Loan servicer: Granite State Management & Resources (GSM&R)


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.37%+8 5.86%+8 670Yes, after 48 months
  • Fixed APR: 4.37%+8
  • Variable APR: 5.86%+8
  • Min. credit score: 670
  • Loan amount: $1,001 up to cost of attendance
  • Loan terms (years): 5, 10, 15
  • Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance
  • Fees: Late fee
  • Discounts: Autopay, reward for on-time graduation
  • Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school
  • Customer service: Email, phone, chat
  • Soft credit check: Yes
  • Cosigner release: After 48 months
  • Loan servicer: American Education Services


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.89%+ N/A670Yes, after 48 months
  • Fixed APR: 4.89%+
  • Variable APR: N/A
  • Min. credit score: 670
  • Loan amount: $1,500 up to cost of attendance less aid
  • Loan terms (years): 10, 15
  • Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance
  • Fees: None
  • Discounts: None
  • Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress.
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 48 months
  • Loan servicer: American Education Services (AES)


Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
View details
4.509 - 14.83%9 5.37%9 - 15.709 Does not discloseYes, after 12 months
  • Fixed APR: 4.509 - 14.83%9
  • Variable APR: 5.37%9 - 15.709
  • Min. credit score: Does not disclose
  • Loan amount: $1,000 up to 100% of school-certified cost of attendance
  • Loan terms (years): 10 to 209
  • Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability
  • Fees: Late fee, non-sufficient funds (NSF) fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner.
  • Customer service: Phone, chat
  • Soft credit check: Yes
  • Cosigner release: Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements.
  • Loan servicer: Sallie Mae
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Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 10Ascent Disclosures | 1Citizens Disclosures | 2,3College Ave Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

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How to find a cosigner

Agreeing to cosign on a loan is a major responsibility and shouldn’t be taken lightly. If you miss your payments or default on the loan, your cosigner will be on the hook, and their credit will be damaged — all of this can also strain your relationship with your cosigner.

As you look for a cosigner, be prepared for someone to potentially say no or raise concerns before agreeing to do you this favor. If you’re ready to find a cosigner, here are four important steps to follow:

  1. Consider your options. A cosigner can be anyone with good credit — such as a parent, another relative, or a trusted friend — who is willing to share responsibility for the loan.
  2. Figure out your payment strategy. Before applying with a cosigner, make a plan for how you’ll handle repaying the loan if you’re approved — and what you’ll do if you can’t make a payment on time. Showing your cosigner that you’re ready to manage the loan could help ease concerns that they might have.
  3. Discuss the risks. Don’t shy away from talking about the risks of cosigning — instead, make sure both you and the cosigner are fully aware of the liabilities involved. Your cosigner should understand that they’ll be responsible for paying back your loan if you don’t keep up with payments.
  4. Use teamwork. After comparing loan options and choosing a lender, go through the application with your cosigner. This way, both of you will know exactly what you’re agreeing to. For example, you might want to consider applying for student loans that offer cosigner release, which will let you remove your cosigner from the loan in the future. To qualify for cosigner release, you’ll typically have to make on-time, consecutive payments for a certain amount of time as well as meet the underwriting criteria on your own.

Learn More: Best Private Student Loans That Don’t Require a Cosigner

What lenders look for in a student loan cosigner

While qualifying criteria for a student loan cosigner can vary by lender, here are some common requirements that you’ll likely come across:

  • Good credit: Cosigners typically need good to excellent credit to be a cosigner — this usually means having a credit score of 700 or higher, though some lenders might accept lower scores than this.
  • Stable income: Lenders want to see that your cosigner can afford to repay the loan if you can’t make your payments. Your cosigner should be prepared to provide documentation that illustrates their income — such as tax returns or pay stubs.
  • Low debt-to-income ratio: Your debt-to-income (DTI) ratio is the amount you owe in monthly debt payments compared to your income. Lenders will likely consider a cosigner’s DTI ratio to ensure that they can reasonably fit an additional payment into their budget — in this case, your student loan payment if you fail to make payments.

Most students use a cosigner to get a private student loan

Most private student loans have a cosigner — so if you need one, you’re not alone.

How does a lender decide who qualifies for a private student loan? When reviewing loan applications, lenders typically look at a range of factors to make a decision. The most important of these are typically your credit score, income, and other debt payments you’re responsible for. Having a cosigner might make it easier for you to qualify.

If you’re shopping for a private student loan, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can see your rates in two minutes after filling out just one form.

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Eric Rosenberg contributed to the reporting for this article.

About the author
Taylor Medine
Taylor Medine

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

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