A student loan cosigner is generally a trusted relative or friend who has good credit and is willing to apply for a loan with you. If you can't make payments as agreed, the cosigner will be responsible for paying the loan themselves.
If you refinance student loans with a cosigner, you'll have a better chance of getting approved — and might also qualify for a lower interest rate.
1. Compare rates from different lenders who allow cosigners
Many lenders allow you to refinance student loans with a cosigner. You can refinance both private and federal student loans — though keep in mind that if you refinance federal student loans, you’ll lose access to federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs.
“Before you refinance, I recommend that you compare your rates and loan terms from as many lenders as possible to find the right loan for you with an online marketplace like Credible. For example, one lender might offer a better interest rate while another could let you extend your repayment term to lower your student loan payments.”
— Richard Richtmyer, Senior Editor, Student Loans
Here are Credible’s partner lenders that will let you refinance your student loans with a cosigner:
Compare personalized rates from multiple lenders
See Your Refinancing OptionsAll APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Citizens
Unlike some other refinancing lenders, you don't need to have finished your degree to refinance with Citizens.
Plus, if you already have an account with Citizens, you could qualify for a 0.25% loyalty discount — and another 0.25% off your rate if you sign up for autopay. You can apply for cosigner release after 36 months of on-time, consecutive payments.
College Ave
With College Ave, you can choose from 16 loan terms ranging from five to 20 years, giving you more repayment flexibility.
You can refinance $5,000 to $300,000 with a cosigner through College Ave. If you'd like to eventually release your cosigner, you may do so if you meet approval requirements and half of your original term has passed.
ELFI
Education Loan Finance (ELFI) offers refinancing starting at $15,000 with no set maximum, which could make it a good choice if you have a particularly large student loan balance.
Just keep in mind that ELFI doesn't offer cosigner release, so if you refinance a large balance with a cosigner, they'll be in it for the long haul.
INvestEd
INvestED offers up to 24 months of forbearance over the life of refinanced loans (for one to three months per forbearance period), which could make it a good choice if you face financial difficulties down the road.
You can refinance $5,000 to $250,000 with INvestEd and can apply for cosigner release after 48 months of consecutive, on-time payments.
ISL Education Lending
ISL Education Lending offers a variety of refinancing options, including the ability to refinance while you're still in school. You can refinance $5,000 to $300,000 — though keep in mind that different limits apply to borrowers who are still in school as well as California residents.
Cosigner release applications are accepted after 24 months of consecutive, on-time payments.
MEFA
MEFA is another lender that offers student loan refinancing to borrowers who didn't finish their degrees.
You can refinance $10,000 up to the total amount of your qualified education debt with MEFA — though keep in mind that MEFA doesn't offer cosigner release.
RISLA
Most refinancing lenders only offer temporary forbearance options in cases of financial hardship. However, if you refinance with RISLA, you can sign up for an Income-Based Repayment (IBR) plan if you demonstrate financial hardship.
Similar to some of the federal income-based repayment options, RISLA's IBR plan caps your payments at a percentage of your discretionary income based on your family size and location. Repayment terms are up to 25 years. Keep in mind that RISLA doesn't offer cosigner release.
2. Find a cosigner
Asking someone to cosign on your student loan isn't a small thing: If you miss a payment or default on the loan, your cosigner will be equally responsible, and their credit could be damaged. Be sure to carefully consider whether you'll be able to honor your loan obligation, as you could burn a bridge with your cosigner if you fail to properly manage the loan.
Also, keep in mind that some lenders also offer cosigner release, which means you can apply to have your cosigner removed from the loan after making on-time payments for a certain amount of time. In addition to making the minimum number of required payments, you typically must be able to pass a credit and income check on your own before you can release your cosigner.
Tip:
Because of the potential downsides for your cosigner, it’s a good idea to create a written agreement laying out your responsibilities for the loan before you apply. This can help your cosigner feel more comfortable.
Check Out: How Often Can You Refinance Student Loans?
What makes a good cosigner?
A good cosigner:
- Has good credit
- Has a low debt-to-income ratio
- Is easy to contact in situations where you need to discuss the loan
- Can afford to make loan payments in case you can't
Learn More: Private Student Loan Consolidation
3. Apply with your selected student loan refinance lender
After comparing lenders and getting permission from your cosigner, you'll need to fill out a full application to apply for refinancing. Be sure to gather any documentation you might need, such as student loan information and pay stubs.
Your cosigner might also need to provide financial documents and answer application questions.
Tip:
Before you apply, be sure to check your rates as well as repayment terms with as many lenders as you can to find a loan that suits your needs.
Refinancing your student loans might get you a lower interest rate, which could help you save money over the life of your loan. And even if you don't need a cosigner to get approved, having one could qualify you for a lower rate than you'd get on your own.
Check Out: What To Do If You Were Denied Student Loan Refinancing
What are the benefits of having a cosigner on a student loan?
There are several benefits to having a cosigner on your student loan. Two major perks include:
- You're more likely to be approved for student loan refinancing. This could be especially helpful if you're looking to refinance student loans with bad credit.
- You might get a lower interest rate. This could save you a lot of money over the life of your loan and may help you pay off your loan faster. Even if you don't need a cosigner to qualify, having one could qualify you for a lower rate than you'd get on your own.
If you decide to refinance your student loans (with or without a cosigner), remember to consider as many lenders as you can to find the right loan for you.
Keep Reading: Standard Repayment Plan
Find out if refinancing is right for you
See Your Refinancing Options