How to Get a Student Loan Cosigner Release

Releasing your cosigner from your student loans can become necessary over time. Changes in your or your cosigner’s situation, such as losing contact or their inability to handle the financial responsibility, might prompt this need.

If your lender offers a cosigner release option, be prepared to meet specific requirements. Understanding these requirements and the process is crucial for obtaining a student loan cosigner release.

Table of Contents

1. How to get a student loan cosigner release
2. Why do some lenders allow a cosigner release?
3. What if my lender doesn’t allow cosigner release?
4. How do my responsibilities change when I remove a cosigner from my student loans?
5. Do any of the terms on my student loan change if my cosigner is released?
6. Can a lender require me to add a cosigner back once removed?

How to get a student loan cosigner release

Cosigner release only applies to private student loans, not federal loans. Federal student loan requirements are based on economic need rather than credit score. Private student loans offer financing for expenses that federal loans won’t cover, but many young students with limited credit history need a cosigner to qualify.

If you need to remove a cosigner from your private loans—or you’re a cosigner who wants to be removed—take the following steps:

1. Find out whether your lender offers cosigner release

Most private lenders provide a process for cosigner release. Check the lists below to see whether your lender is included. If not, contact customer service or check the website. The Consumer Financial Protection Bureau (CFPB) offers sample scripts for contacting lenders.

Lenders that allow cosigner release:

Lender	Number of on-time payments required
Sallie Mae	12
Ascent	12
LendKey	24
SoFi	24
Citizens Bank	36
Custom Choice	36
EDvestinU	36
PNC	48
College Ave	Half of repayment term (e.g., 5 years for a 10-year repayment term)

Lenders that don’t allow cosigner release:

• Discover
• Funding U
• MPOWER

If your lender doesn’t offer cosigner release, refinancing your student loan may be your only option to remove them. (Read more about this below.) If your credit score won’t allow you to qualify for a refinance, you may need to refinance with a different cosigner or work on improving your credit.

2. Determine whether you meet your lender’s requirements

When your lender confirms a cosigner release is an option, find out what it requires to release your cosigner from their obligations.

Common requirements include:

• ​Proof the primary borrower has graduated college.
• A certain number of on-time monthly payments, usually between 12 and 48.
• Proof of employment and a steady income.
• ​Good credit, meeting the lender’s minimum requirements. 
• Being a U.S. citizen or permanent resident.

If you don’t meet these requirements yet, take steps to fulfill them. This might involve making more payments, increasing your income, or improving your credit.

3. Gather your documents

If you meet the requirements, assemble the necessary documentation:

• W2s, pay stubs, or tax returns for proof of income.
• A copy of your degree or college transcripts.
• Proof of the required number of payments.
• The cosigner release application form. 

Having all paperwork ready will prevent delays.

Submit your application

Submit your request for cosigner release via mail or online, if available. Keep a paper copy for your records, and send requests via certified mail with return receipt requested. The CFPB offers sample letters for this process.

Your lender should respond within several weeks. The cosigner should see the debt removed from their credit report after several weeks if approved. If not, the lender should explain why and advise on steps to take to qualify in the future.

Read More

Student Loan Repayment: Best Plans & Other Resources

Why do some lenders allow a cosigner release?

Certain lenders offer a cosigner release option in exchange for proof that the original borrower now qualifies for the loan independently. 

Lenders base their approval decisions on statistics and qualifications, so some see no issue in removing a cosigner if the original borrower has a stronger financial history now. 

Many lenders offer this as a benefit to draw in customers. Sallie Mae, for example, requires just 12 months’ worth of payments to qualify for a cosigner release. Other companies require 36 months of payments or more. 

What if my lender doesn’t allow cosigner release?

Some lenders don’t offer cosigner release. In those instances, you’ll need to get more creative in how you remove your cosigner. Another way to release your cosigner is to refinance your student loans.

Student loan refinancing involves taking out a new loan, often from a different lender, and repaying the old loan using the money from the new loan. The new loan should ideally have more favorable repayment terms, which could lower your monthly payment and total interest, making the payments more affordable. 

Refinancing can be a simple way to remove your cosigner if you qualify. As with a cosigner release, you must qualify for a refinance loan in your own name. 

Many refinance lenders’ requirements are similar to those in place to qualify for the original loan, such as proof of income (via recent pay stubs) and satisfactory credit history. Read the new loan terms to ensure they’re reasonable so you don’t end up with higher payments or an outright denial on your refinancing application.

How do my responsibilities change when I remove a cosigner from my student loans?

When you’re new to financial responsibilities, student loans can be intimidating. That’s why companies allow for cosigners, often the student’s parents or guardians, so someone with an established financial track record is responsible for payments if the original borrower doesn’t make them. 

When you release your cosigner, you take full responsibility for paying your loans. If you cease making payments, no one else is responsible for paying. 

Talk with your cosigner if they want to get out of their agreement but you’re worried you might still struggle with paying down the loan. 

Are they willing to assist with repayment even if it isn’t a legal requirement? If so, relying on them from time to time could be a “best of both worlds” option for you and your cosigner. 

Do any of the terms on my student loan change if my cosigner is released?

When you release your cosigner, your loan should remain the same. The original agreement you made when you took out the loan still holds. The only difference is you’re now fully responsible for those agreements. 

Your loan terms will only change if you refinance with a new lender. By switching, you may be able to select new payoff terms and qualify for a lower interest rate.  

Can a lender require me to add a cosigner back once removed?

If you’ve removed your cosigner only to realize you’re struggling with payments, you’re on your own. 

Your lender may offer temporary deferment or forbearance if you lose your job, but it isn’t likely to allow you to add your cosigner back. 

You can add a cosigner back to your loan if you refinance with another lender. Most private lenders have a cosigner option, so if you refinance, you should be able to add a cosigner to your loan.