The presence of a cosigner with a strong credit and income history is a safety net for the lender — with a cosigner, lenders have an extra layer of
protection against borrower default.
The presence of a cosigner with a strong credit and income history is a safety net for the lender — with a cosigner, lenders have an extra layer of
protection against borrower default.
The federal government guarantees FFELP
loans against borrower default and ensures that the lenders receive a market rate of return on the loans despite the lower interest rates paid by borrowers of education loans.
The lender gets extra protection
against borrower default.
It can be next to impossible to acquire a traditional loan from a bank or credit union if there is no basis for qualification or protection
against borrower default.
Somewhat similar to the VA, the FHA insures mortgages
against borrower default.
The lender gets extra protection
against borrower default.