8 Student Loans with Cosigner Release

Applying for a private student loan with a cosigner could help you get approved if you have poor or even no credit. It might also save you money by qualifying you for a lower interest rate than you’d get on your own.

However, because a cosigner is on the hook for the loan if you stop making payments, they might not want to share responsibility for the entire life of the loan. This is why many private lenders offer a cosigner release option, which allows a cosigner to be removed from a student loan if certain conditions are met.

8 private student loans with a cosigner release option

To qualify for cosigner release on a private student loan, you’ll typically have to:

• Qualify for the student loan on your own
• Make consecutive, on-time payments for a certain period of time

Here are Credible’s private student loan partners that offer a cosigner release option:

Ascent

To release a cosigner from an Ascent loan, you must:

• Make 12 consecutive, on-time payments
• Meet eligibility requirements to qualify for a loan without a cosigner
• Sign up for autopay
• Make a direct request with the loan holder to release the cosigner

With Ascent, you can borrow $2,001 to $400,000 with repayment terms from five to 20 years (depending on loan type). Additionally, you could qualify for a 1% cashback graduation reward if you earn your degree within five years.

Pros

• 0.25% to 2.00% autopay discount
• 1% cashback graduation reward
• Might qualify with fair credit

Cons

• $200,000 aggregate limit, which might not be enough for more expensive programs
• Ascent Non-Cosigned Future Income-Based Loan available only to juniors, seniors, and graduate students
• Deferred repayment is the only repayment option for loans without a cosigner

Citizens

To release a cosigner from a Citizens loan, you must:

• Make 36 consecutive, on-time payments
• Undergo credit review and income verification

Citizens offers student loans from $1,000 up to 100% of your school’s cost of attendance (aggregate limits apply) with terms from five to 15 years.

If you already have an account with Citizens, you could get a 0.25% rate discount — plus another 0.25% off your rate if you sign up for autopay.

Pros

• Might be able to borrow up to your school’s cost of attendance
• 0.25% autopay discount
• 0.25% loyalty discount

Cons

• Might be hard to qualify if you don’t have good credit
• Doesn’t disclose minimum income requirements
• Long cosigner release period (36 months)

College Ave

To release a cosigner from a College Ave loan, you must:

• Be a U.S. citizen or permanent resident
• Have completed at least half of the original repayment term
• Earn at least twice the amount of your current loan balance
• Pass a credit check
• Not have had a 30-day delinquency on any account in the past 12 months
• Not have had a bankruptcy, foreclosure, or repossession in the past 24 months

College Ave student loans range from $1,000 up to 100% of your school-certified cost of attendance (minus any other financial aid you’ve received).

Additionally, you can choose from a variety of loan terms ranging from five to 15 years (depending on your degree type).

Pros

• Might be able to borrow up to your school’s cost of attendance
• Variety of loan terms
• 0.25% autopay discount

Cons

• Doesn’t disclose minimum income or credit requirements
• Income for the past two years must be twice your outstanding loan balance to be eligible for cosigner release
• Can’t have made any late payments on other debts to be eligible for cosigner release

Custom Choice

To release a cosigner from a Custom Choice loan, you must:

• Have made the 36 consecutive, on‑time principal and interest payments
• Have met credit and others criteria as a student borrower

The Custom Choice Loan is available from $1,000 to $99,999 annually ($180,000 aggregate limit) with a three- or five-year term. If you graduate with at least a bachelor’s degree, you could get a 2% principal reduction on your loan.

Pros

• 0.50% autopay discount
• No application, origination, or disbursement fees
• No prepayment penalty

Cons

• Might be hard to qualify if you don’t have excellent credit
• Long cosigner release period (36 months)
• Must have a minimum income of $30,000

INvestEd

To release a cosigner from an INvestEd loan, you must:

• Make the first 48 consecutive monthly payments in full and on time
• Meet the underwriting and credit criteria at the time of the release request

If you live or attend school in Indiana, INvestEd could be a good choice for private student loans. You can borrow $1,001 up to 100% of your school’s cost of attendance (minus any other financial aid you’ve received) with terms from five to 15 years.

Pros

• Might be able to borrow up to your school’s cost of attendance
• 0.25% autopay discount
• Offers college planning and financial aid resources to help students and families

Cons

• Only available in Indiana
• Long cosigner release period (48 months)
• Charges late and returned payment fees

MEFA

To release a cosigner from a MEFA loan, you must:

• Have taken out an undergraduate loan and opted to defer your payments (can defer for up to 60 months)
• Make the first 48 consecutive payments on time after leaving school
• Meet the underwriting requirements in place at the time of the release request

The Massachusetts Educational Financing Authority (MEFA) offers student loans from $1,500 up to your school-certified cost of attendance less aid. Repayment terms range from 10 to 15 years.

Pros

• Might be able to borrow up to your school’s cost of attendance
• Can defer payments for up to 60 months
• No application, origination, or disbursement fees

Cons

• Doesn’t offer variable rates
• Long cosigner release period (48 months)
• Cosigner release not available for graduate loans

Sallie Mae

To release a cosigner from a Sallie Mae loan, you must:

• Make 12 consecutive, on-time payments (or pre-pay the amount equal to these payments)
• Provide proof of graduation or completion of education
• Have no student loans in a hardship forbearance or a modified repayment program for the 12 months immediately preceding the release request
• Demonstrate the ability to assume full responsibility for repayment
• Undergo a credit review and provide proof of income

With Sallie Mae, you can borrow $1,000 up to 100% of school-certified cost of attendance with terms ranging from 10 to 20 years. Additionally, cosigner release is available after just 12 months — a shorter time than many other lenders.

Pros

• 0.25% autopay discount
• 0.50% interest rate reduction on graduate and professional school loans if you make interest-only payments while in school
• Cosigner release offered after just 12 months

Cons

• Doesn’t disclose minimum income or credit requirements
• Rates can be higher than other lenders
• Must have graduated to qualify for cosigner release

Learn More: How to Pay for College

Requirements for cosigner release

While requirements for cosigner release vary between lenders, here are a few common eligibility criteria you’ll likely come across:

• Make on-time payments for a certain amount of time: Lenders want to see that you’re able to make on-time payments for a specific period of time — usually 12 to 48 months, depending on the lender.
• Meet underwriting requirements on your own: You must be eligible to take over the loan yourself, which means you’ll have to meet the same student loan requirements as a solo borrower.
• Provide proof of income: You’ll have to demonstrate that you earn enough income to afford the loan payments.
• Have good to excellent credit: You’ll typically need good to excellent credit to qualify for cosigner release.

How to apply for a student loan with a cosigner release

If you want to apply for a student loan that offers cosigner release, follow these four steps:

1. Fill out the FAFSA. To start, be sure to fill out the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal student loans and other federal financial aid you qualify for.
2. Apply for scholarships and grants. Unlike student loans, college scholarships and grants don’t have to be repaid — which can help keep your future costs low. There’s no limit to how many scholarships and grants you can get, so be sure to apply for as many as you might be eligible for. You could also qualify for scholarships through your school depending on your FAFSA information.
3. Take out federal student loans. If you need to borrow for school, it’s a good idea to take out federal student loans first. This is mainly because federal loans come with federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal student loans don’t require a credit check. Once you fill out the FAFSA, your school will send you a financial aid award letter detailing what federal student loans and other federal aid you’re eligible for. You can then choose which aid you’d like to accept.
4. Apply for private student loans with a cosigner. After you’ve exhausted your scholarship, grant, and federal student loan options, private student loans could help you fill any financial gaps left over. Be sure to consider as many lenders as possible to find the right loan for you. Compare not only interest rates but also repayment terms and cosigner release requirements.

How to apply for cosigner release

When you fill out an application for cosigner release, you’ll likely need to provide personal information as well as documentation. For example, you might have to submit:

• Your address
• Your Social Security number
• Proof of income
• Proof of graduation (if applicable)
• Employment information (such as a recent pay stub)
• Recent tax returns
• Monthly rent or mortgage payment information
• Car payment information
• Amount of any other monthly payments

Once you’ve gathered this information, follow these three steps to apply for cosigner release:

1. Make the required number of monthly payments. This usually ranges from 12 to 48 months of consecutive, on-time payments, depending on the lender.
2. Fill out the application. Contact your lender for the application. You might also be able to find it on the lender’s website. Be sure to complete the form accurately and submit any required documentation in a timely manner.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find a loan that works for you.

Frequently asked questions

Here are the answers to a few commonly asked questions regarding student loan cosigners:

Can you remove yourself from a cosigned loan?

Generally, the primary borrower must request a cosigner release after meeting the eligibility criteria set by the lender. If you want to be removed yourself as cosigner, reach out to the lender to see what’s required for cosigner release and whether there are any steps you can take.

Do late payments affect the cosigner?

Yes. Because the cosigner shares responsibility for the loan along with the primary borrower, late payments will show up on the cosigner’s credit report and could damage their credit.

How long is a cosigner responsible for the loan?

The cosigner is responsible for the loan for the duration of the repayment term. To remove this obligation, the primary borrower must either apply for cosigner release or refinance the loan in their name.