If the borrower fails to repay the loan, the cosigner is responsible for payment. However, we offer the benefit of cosigner release, which is subject to approval. In order to qualify, the borrower must meet the following requirements:
- Make 12 months of consecutive, on-time full payments of principal and interest during the full repayment period (must occur immediately prior to the request for cosigner release). “On-time payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the regularly scheduled monthly payment must be made for 12 months straight without any interruption.
- The borrower’s account is not in delinquent status.
- The borrower must provide proof of income indicating that they meet the income requirements and pass a credit review, demonstrating that they have a satisfactory credit history and the ability to assume full responsibility for loan repayment.
- No bankruptcies or foreclosures filed in the last sixty (60) months; and
- No loan defaults on a student loan or with OAS FCU.