The given statement is true. When someone cosigns your loan, their credit will be tied to it for the duration of the loan.
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Can private loans go into federal loans?</h3>
Refinancing allows federal student loans to change to private loans. However, private student loans cannot be converted to federal loans. Borrowers should be aware of the dangers involved when refinancing federal student loans into private loans because they cannot undo this decision.
Private student loans are a source of funding for higher education in the US that can be used in addition to but not as a substitute for government loans like Stafford, Perkins, and PLUS loans. The terms and conditions of a private loan are established by the lender, which could be a bank, credit union, or state-based or state-affiliated organisation. Find out how government loans and private loans differ from one another.
When someone cosigns your loan, their credit will be tied to it for the duration of the loan. Both of you will experience a decline in credit ratings if you stop making loan payments and your cosigner is unable to take over responsibility. Your credit score is unaffected by co-signing alone. However, if the main account holder is late on payments, your score can suffer.
Hence, The given statement is true.
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