Meanwhile, even with a cosigner on the documents, the lender offered a variable interest rate that is currently at 7.65%.

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All too often, that cosigner is mom or dad, fast approaching retirement age and with a plethora of their own financial obligations.

FORBES: Parents' Tough Choices For Repaying Student Loans

Like other private lenders, credit unions typically require that students have a parent as a cosigner and base loans on a borrower's creditworthiness.

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Private student loans are available to cover education costs at select schools offering undergraduate and graduate degree programs and are available to students with or without a cosigner.

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