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An endorser is someone who agrees to repay a Direct PLUS Loan if the borrower doesnt repay the loan, much like a cosigner does for other types of loans. If the borrower is a parent, the endorser may not be the student on whose behalf the parent is borrowing.
If you made a commitment that you would assist someone by paying their student loans if they are unable to do so, you are most likely a co-signer. As a co-signer, you are equally responsible for paying back the loan. NOTE: A co-signer is commonly referred to as an endorser.
What is an Endorser? An endorser is someone who agrees to repay a Direct PLUS Loan if the borrower doesnt repay the loan, much like a cosigner does for other types of loans. If the borrower is a parent, the endorser may not be the student on whose behalf the parent is borrowing.
An Endorser Addendum is an agreement signed by the endorser stating that he or she agrees to repay the borrowers Direct PLUS Loan under the terms and conditions of the Master Promissory Note (MPN) signed by the borrower, if the borrower does not repay the loan.
It can hurt your credit The main risk with cosigning a loan is that any missed payments can reflect negatively on your score. Remember even though youre not using the loan funds, legally the debt will be your debt too.
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All borrowers need to complete an MPN before they can receive a federal student loan.
Borrower Completes the PLUS Master Promissory Note (MPN) The borrower (NOT THE ENDORSER) will need to complete a PLUS Master Promissory Note. Though MPNs allow for multiple year borrowing under the same terms, when an endorser is used, the MPN is used for that loan only.

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