Refinance Student Loans With a Cosigner: 10 Best Lenders

Refinancing your student loans can help you lower your interest rate and monthly payment, but it generally requires good credit and a stable income. If you can't qualify for a refinance loan on your own, you may qualify with a loved one as your cosigner. If they have good credit, you could have an easier time qualifying for a loan and may even land a lower interest rate.

Getting a refinance loan with a cosigner has some benefits, but it's important to understand the eligibility requirements up front and what the arrangement means for both of you. Here's what you need to know.

Can I refinance student loans with a cosigner?

Most private lenders allow you to refinance student loans with a cosigner. A cosigner is typically a family member or close friend who shares responsibility for the loan. If you can't make payments, they're legally obligated to step in. Their credit score and income are also considered in the application, which can help you qualify for a lower interest rate or better loan terms.

“Having a cosigner on a loan is generally required if the primary borrower doesn't have a sufficient credit profile, such as credit score or debt-to-income ratio, that would be required to obtain the loan on their own,” says Jack Wang, a wealth adviser with Innovative Advisory Group

See Also: Do Parents Have To Cosign Student Loans?

Current student loan refinance rates

Best refinance lenders that accept cosigners

EdvestinU: Best nonprofit lender

RISLA: Best for income-based repayment

MEFA: Best for borrowers who didn’t graduate

Earnest: Best for cosigners with fair credit

SoFi: Best member perks

Brazos: Best for Texas residents

LendKey: Best for cosigners with excellent credit

INvested: Best forbearance options

Citizens: Best for current account holders

ELFI: Best for high loan balances

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan refinance lenders with a cosigner, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

What makes a good cosigner?

A strong cosigner can help you qualify for student loan refinancing if you don't meet a lender's requirements on your own.

“In the past, your credit score was considered the most important metric of financial stability,” says Jenny Twomey, community communications lead at Earnest, a student loan lending platform. “But these days, lenders consider a broader range of factors to evaluate a potential borrower's creditworthiness.”

A good cosigner should have a strong credit score, a steady income, and a low debt-to-income ratio. But just as important, they should trust you to manage the loan responsibly. Missed payments will impact both of your credit scores and could hurt their ability to borrow in the future.

Pros of refinancing with a cosigner

• Can help you qualify for refinancing: A cosigner might help you get approved for a refinance loan if you don't meet a lender's credit or income requirements on your own.
• May help you access lower rates: Lenders typically offer lower interest rates and more favorable repayment terms when a cosigner with stronger credit is on the loan.
• Could help you save money over time: A lower interest rate can lead to lower monthly payments and less paid interest. For example, if adding a cosigner drops your rate from 8% to 6% on a $20,000 loan with a 10-year term, you'd lower your monthly payment by about $20 and save nearly $2,500 over the life of the loan.

Cons of refinancing with a cosigner

• The cosigner is legally responsible for the loan: If you miss payments, your cosigner is required to step in and cover them.
• It could hurt the cosigner's credit: The loan appears on their credit report, and any missed or late payments could lower their credit score.
• Not all lenders offer cosigner release: Even if you plan to remove your cosigner later, some lenders like SoFi don't offer this option. If cosigner release is an option, you'll need to meet specific credit and payment history requirements on your own to qualify.
• It may strain your relationship: Asking someone to cosign is a big commitment. If you can't keep up with payments, it could create financial and personal tension.

Should I refinance with a cosigner?

Refinancing with a cosigner might be a good option if:

• You don't meet a lender's credit or income requirements: Most private lenders require a credit score of at least 670 on the FICO scale and a steady income to qualify. If you have poor credit, a cosigner with strong financial credentials can improve your chances of approval.
• You want to qualify for a lower interest rate: If your cosigner has a stronger credit score and lower debt-to-income ratio than you, adding them to your application could help you qualify for a lower interest rate.
• You have someone willing to share financial responsibility: A cosigner is legally responsible for the loan if you can't make payments. Make sure they understand the risks and are comfortable taking on the commitment

See Also: What to Do If You're Denied a Student Loan With a Cosigner

How to refinance with a cosigner

If you're planning to refinance your student loans with a cosigner, the first step is to decide who you'll ask to cosign. In most cases, you'll ask someone close to you, such as a family member or close friend.

Once someone has agreed to be your cosigner, here are the steps to refinance your loan:

1. Shop around for lenders: Start by narrowing down your list of potential lenders. If you know you need a cosigner on your loan, you'll narrow your list down to those lenders that allow cosigners.
2. Compare rate quotes: When refinancing, you'll generally want to find the best interest rate and loan terms to get the most affordable payments. You can compare your options by getting several rate quotes in a process called prequalification. You can often do this without an impact on your credit.
3. Gather documents: Both you and your cosigner will need to provide your lender with certain documents, including your government-issued ID, proof of income, and your most recent loan statement.
4. Apply for your loan: Once you've chosen a lender and gathered your documents, you can apply for your loan. This step usually takes 10 minutes or less, but you'll likely need your cosigner there to help complete the application (or provide information ahead of time).
5. Sign your loan documents: Once your loan is accepted, which can happen anywhere from immediately to about a week later, you and your cosigner will both sign the loan agreement to finalize the loan. You're now officially on the loan together.

How does cosigner release work on a refinanced loan?

Some lenders let you apply for cosigner release after you've met certain requirements, but it's not automatic. To qualify, you'll typically need to:

• Make a set number of on-time payments, often 12 to 36 months.
• Meet the lender's credit and income requirements on your own.
• Submit a formal request for cosigner release and provide any required documentation.

Even if a lender offers cosigner release, approval isn't guaranteed. If you don't qualify, your cosigner will remain legally responsible for the loan. If removing them is a priority, you may need to refinance again under your name alone.

Tips for managing your new cosigned loan

As the primary borrower on a cosigned loan, it's your responsibility to make sure you make your monthly loan payments, unless you and your cosigner have explicitly agreed otherwise.

In most cases, the cosigner simply signs onto the loan to help the primary borrower get approved — they don't actually expect to make the payments. However, in the eyes of the lender (and the credit bureaus), the loan is just as much their responsibility. Failing to pay it could have major negative consequences for them.

“It's essential that borrowers and cosigners remain in contact, especially if the borrower ever faces financial challenges,” says Robert Farrington, founder of The College Investor. “Since the cosigner is legally responsible for the loan, if the borrower needs assistance making payments, they need to discuss the options together.”

There's no doubt this will be a challenging and potentially awkward conversation, but it's better than surprising a loved one with a missed payment on their credit report that dings their credit score.

One way to stay on top of your payments is to set up automatic payments from your bank account. This helps ensure you never miss a payment, and as an added bonus, many lenders offer a small rate discount when you opt in.

Finally, consider choosing a lender that offers cosigner release. A cosigner release allows a cosigner to be removed from the loan after a certain period, assuming they've made all of their payments on time. Think of it like a test run, where your lender just wants to make sure you'll actually stick to your payments.

“This can be a great feature to look for when deciding to refinance a loan with a cosigner,” says Farrington.

See Also: Best Student Loans Without a Cosigner of 2025