Considering a Cosigner? Private student loans are credit based. That means not only do they require an acceptable credit rating but, in many cases, the better the rating … the lower the interest rate. It’s important to realize, though, that cosigning a loan or asking someone to cosign one for you, makes another person just as accountable to repay that loan as the borrower. As a result, if your cosigner has excellent credit (and you do not), you are likely to benefit from a loan with lower rates and fees. This table shows you how much interest would be paid—based on different loan rates—on a $10,000 loan taken out your freshman year. You take out a $10,000 loan: Interest Rate Capitalized Interest Total Interest Paid 8% $3,267 $12,821.55 10% $4,083 $17,241.43 12% $4,900 $22,186.89 Having a cosigner could save you a lot of money. Cosigner Rights and Responsibilities A cosigner is guaranteeing the debt. That means you (or your parents or spouse, if they are the cosigners) will have to repa...