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Cosigner release occurs when a student loan lender allows the cosigner to be released of any obligation and ties to a loan.
Cosigning a student loan impacts your credit, and it also makes you equally responsible for paying off the debt. If the borrower doesn’t pay, the cosigner is expected to make the payments. If a borrower misses a payment, it impacts the cosigner’s credit, too.
Being a cosigner on a student loans appears on your credit report. Carrying that debt makes your debt-to-income ratio higher, which could make it more difficult to purchase or refinance a home and qualify for credit cards and auto loans.
How to Qualify for a Cosigner Release
For these reasons, many cosigners like the idea of a student loan lender offering cosigner release. Every lender has different requirements for how a cosigner can be released from a loan. These may include:
- The borrower satisfies the income and credit requirements
- The borrower makes a specific number of consecutive on-time monthly loan payments
- The borrower graduates
Student Loan Lenders That Offer Cosigner Release
There are some private student loan lenders that offer an option for a cosigner to eventually be released from the loan. Before applying, make sure to confirm they offer cosigner release, as terms can change.
- Citizens Bank
- College Ave
- Commonbond
- Commerce Bank
- CU Learn with Thrivent
- Goal Structured Solutions (Ascent)
- Laurel Road
- LendKey
- Navy Federal Credit Union
- Nelnet
- PNC Bank
- Sallie Mae
- SunTrust Education Loans
- Wells Fargo
See also:
- How to Pay for College without Student Loans
- Federal Student Loans Offer Superior Benefits
- Complete Guide to Cosigning Student Loans
At Savingforcollege.com, our goal is to help you make smart decisions about saving and paying for education. Some of the products featured in this article are from our partners, but this doesn’t influence our evaluations. Our opinions are our own.
