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MISLED Consolidating existing Discover Student Loan w/Co Signer

Started by Discover Parent + Student, October 23, 2019, 04:37:33 pm

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Discover Parent + Student

I have cosigned all loans for my son. Each time asking if after he is out of school, can the loans be consolidated. The answer has always been yes "if approved". Never had Discover told me that they can be consolidated but he MUST be able to do so without a cosigner.
After graduating he was turned down for consolidation (because of his low/no income)even with me as a cosigner.
In talking with their pleasant and helpful staff they directed me to the website, to show that he could not use a cosigner. Staff was not even able to find any indication of this. Where the ? is asked if a cosigner is needed (for consolidation) the following is Discover Student Loan response "Students may have the option to apply with a creditworthy cosigner. By applying with a creditworthy cosigner, you may receive a lower interest rate."
WE were unable to find anywhere that it states a consolidation loan MUST be achieved WITHOUUT a cosigner. WHAT ELSE HAVE THEY MISLED ME ON?


Well, first off, you have private loans... not Federal. The rules of private loans vary from lender to lender. 90% of private loans require a cosigner because undergraduate borrowers simply don't have income, credit history, etc to loan to.

When you say "consolidation", private loans don't offer consolidation - they offer refinancing. You are simply trying to get a new loan to replace your existing loans. This doesn't always serve any purpose, except to maybe lower the interest rate.