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What is a cosigner and why should I consider adding one?

cosigner is a person who agrees to pay a borrower’s debt if he or she defaults on the loan.

Some of our student loans refinance partners have release clauses when you apply with a co-signer whereby the co-signer may be removed from a loan once the primary borrower has shown financial discipline and on-time payments. Learn more about co-signers here.

  • Updated November 21, 2019

Are there any downsides to refinancing?

Yes, but the key is to understand whether these downsides are important to you or not.

When you refinance Federal loans with private loans, you will lose some of the benefits specific to Federal loans.

Federal student loans come with protections that can help you if you’re struggling with your payments. You may be able to use repayment plans that decrease these amounts or put them on pause altogether.

You also may qualify to have loans forgiven under certain criteria. Most private loans do not offer options like these, and once you replace your federal loans with a private loan, you cannot move or consolidate the loan back into a federal loan to get these benefits.

This is a pretty complex topic. If you have specific questions, join FitBUX (it’s free) and schedule a call with a FitBUX Coach (This is free too). We will be glad to help.

  • Updated November 21, 2019

Are there any negative impacts to getting a rate quote?

Most lending partners will provide you a rate quote using a “soft credit pull”. This does not impact your credit score. If you are being asked for a “hard credit pull” then yes, this would affect your credit score.

Learn more about the different type of credit pulls here.

  • Updated November 21, 2019

What is the difference between a soft credit pull and a hard credit pull?

When a lender asks a credit bureau to look at your credit report, that inquiry may get noted as part of your credit history. There are two types of inquiries—hard and soft.

  • soft inquiry occurs in cases where you check your own credit or when a lender or credit card company checks your credit to pre-approve you for an offer. Soft inquiries do not appear on your credit report and do not impact your credit score.
  • hard inquiry occurs when a lender with whom you’ve applied for credit reviews your credit report as part of their decision-making process. This type of inquiry appears on your credit report and can influence your credit score.
  • Updated November 21, 2019