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# Guide to Removing a Cosigner from a Student Loan (Cosigner Release)
Lenders usually try to make it hard to get a cosigner removed from a student loan, but there are ways around these challenges.
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Written By: Michael P. Lux, Esq.
Last Updated: December 14, 2024
Having a cosigner attached to a loan is a big deal for student loan lenders. Instead of having one person legally required to pay back the debt, cosigned loans have two.
Banks and lenders *love* having cosigners. Double the people responsible for repaying the debt increases the chances that the loan is profitable.
To help convince wary cosigners, many lenders advertise a cosigner release. Unfortunately, getting approved for a release using the traditional approach is often challenging. For this reason, we will discuss several different tactics available to secure a cosigner release.
## The Benefits of a Cosigner Release
To fully understand the cosigner release process, it is helpful to first understand the risks and the benefits for all parties involved. There are two major concerns for cosigners of student loans:
* **Borrowers who fail to make payments –** If the borrower fails to make payments, the cosigner has to step in and make payments. Cosigners who don’t make payments can face harsh collection tactics including negative credit reporting and wage garnishments.
* **Continuing credit score consequences** – Even if the borrower hasn’t missed a payment, cosigned loans appear on the cosigner’s credit report. This debt can hurt an individual’s  In some cases, it can be the difference between  or getting declined.
Securing a cosigner release means eliminating the chance of the loan getting in the way of a mortgage and it erases the possiblilty of the cosigner getting stuck making payments.
    **Sherpa Tip:** The stakes are high with cosigner releases. Removing a cosigner is a huge risk to any lender, and it is a huge benefit to the cosigner.
For this reason, the traditional strategy for a cosigner release is difficult, but tactics that eliminate the original lender’s involvement have a higher likelihood of success.
## The Hard Way: Getting Lender Approval for a Cosigner Release
Many lenders advertise a cosigner release in as little as one year after the borrower begins repayment. The lender ads typically highlight that the borrower needs to make 12 or 24 consecutive on-time payments on the loan.
In the fine print, almost all lenders also require that the borrower pass a new credit check before the consigner gets removed. Lenders usually require this step to ensure the borrower is “creditworthy” independently. A history of timely payments is not enough for a cosigner release.
The problem with this process is that approvals are hard to get. The company making the creditworthiness decision has every incentive to deny the application. They will always prefer to have two people legally responsible for the debt.
Lenders gain almost nothing of value by removing a cosigner. A : the chances of approval are slim.
Given the difficulty of securing a cosigner release through the existing lender, **this approach should only be used by borrowers with excellent credit who want their student loans to stay the same**. If the current loan has a fantastic interest rate, trying to get the cosigner release in this method may make sense.
In most other cases, the easy way is the best…
## The Easy Removal: Find a New Lender
Existing lenders may not want to release cosigners, but a new lender might be excited to take on the debt.
For most borrowers, refinancing the debt will be the easiest route to getting a student loan cosigner release.
At present, . Due to the intense competition, , and borrowers in repayment have solid chances of being approved without a cosigner.
Refinance applications are typically easier than in-school student loan applications. Most college students have no job, no degree, and a limited credit history. As graduates, many are employed with a decent credit history. (.)
Typically refinancing is done to secure a lower interest rate. However, the process is also an excellent way to remove a cosigner. If the applicant gets approved independently, the old loan gets paid off in full and replaced with a new loan from the new lender. From the former cosigner’s perspective, the debt they were legally responsible for shows up as paid in full on their credit report.
Things can get a little hairy if the best available refinance rate is the same or slightly worse than the existing loan. The primary borrower may have to accept a slightly worse rate to help the cosigner out.
The key to this process is understanding that the old loan and old loan terms are eliminated and replaced with a new loan. The advantage is that it can free a cosigner, but it can be a mistake if the interest rates are terrible or there are other issues with the loan terms.
Some lenders to consider:
|  |  |  |  |
| --- | --- | --- | --- |
| **Pros:** | SoFi is the biggest name in student loan refinancing for a simple reason – their rates are reliably among the best on the market. | LendKey works with a large network of smaller credit unions and banks. As a result, many applicants get the best offer from LendKey. | Splash has the best new customer bonus right now, and they have excellent rates and term opitons. |
| **Cons:** | SoFi has grown into a large company offering mortgages, personal loans, and investment services. They no longer focus entirely on student loan refinancing. | Going the LendKey route does require working with a local bank or credit union. For many, this is a plus, but it is an extra step. | Splash is a newer lender and getting approval may be more difficult for some borrowers. |
| **Bonus:** | NA |  |  |
The primary borrowers who struggle to find a refinance opportunity may have to consider one other option…
## Switching Cosigners on a Student Loan
Sometimes swapping out one cosigner for another may be desirable… especially for borrowers who cannot get the cosigner removed on their own. If Grandma needs the loan removed from her credit report, but Mom is in a position to have the debt in her name, a swap may be the right move.
Lender policy may vary on cosigner substitution. In most cases, lenders will likely frown upon changing cosigners.
Here again, the refinance route may be the path of least resistance. The  may require a cosigner, but they don’t care if the cosigner is the same as the one on the original loan. They only care that the cosigner has a good credit score and income.
## The Hardest Way: Pay the Loan Off in Full
Paying off a loan in full is a challenge for any borrower.
Typically, the suggested route to repayment is to pay off the loan with the highest interest rate first. Once the loan is paid in full, the borrower can move on to the next loan until all loans are paid off. Paying off the highest interest rate loans first is usually preferred because it reduces lifetime spending on interest and gets the debt paid as quickly as possible.
Having a cosigner with a need for urgent removal may shift this order of priority. From the borrower’s perspective, paying off the lower interest rate loan will cost slightly more. However, such a sacrifice may be an excellent way to thank a cosigner for helping make college a possibility.
## When Every Other Option Fails
Sometimes a cosigner release just isn’t available.
If a borrower didn’t finish school, doesn’t earn much money, or has a bad credit history, getting released from the loan may be impossible.
In this circumstance, . By refinancing at a lower interest rate or with a lower payment, you reduce the risk of the borrower falling behind on payments.
Typically, cosigning a refinance loan is a risky move, but if you convert a high-interest loan that you cosigned into , it could help the situation.
## The Key to a Student Loan Cosigner Release
The standard path for a cosigner release is challenging for most borrowers.
Instead of looking at cosigner removal as an independent process, borrowers should focus on cosigner loan elimination. This workaround will most likely take the form of a student loan refinance. Refinancing eliminates a cosigned loan and creates a new loan without cosigner involvement.
Ideally, the original borrower can lower interest rates or monthly payments in the process.
About the Author
Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. He has helped borrowers navigate life with student debt since 2013.
Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications.
Michael is available for  and to respond to .
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The Latest Upates from The Student Loan Sherpa:
## 6 thoughts on “Guide to Removing a Cosigner from a Student Loan (Cosigner Release)”
1. ! H. Kruse  
   Before my son made his final choice to drop out of college (with less than a year remaining), he asked me to fill out FAFSA. He received a couple of Mohela Loans. Now he is full time employed with his step-father’s company and makes nearly $100K annually.
   * !   
     That sounds like a really tough situation.
     I don’t have any easy answers, but hopefully I can help you get a little bit of clarity on the situation. The FAFSA is used to qualify for federal student loans. Federal student loans don’t have cosigners. The debt is either in the name of the student, or in the case of a Parent PLUS loan, the loan is the sole legal responsibility of the parent.
     Is it possible you cosigned a private loan in addition to filling out the FAFSA? Might you have borrowed a Parent PLUS loan?
     If you suspect the debt might be a federal Parent PLUS loan, you can .
     Mohela services both private and federal student loans. That said, they should also be able to tell you what loans are in your name in their system and the status and loan type of each loan.
2. ! Fernando  
   Sallie Mae contacted me (cosigner) after account was 63 days late. Since I have no contact with person, I paid account in full since the person didn’t meet Sallie Mae cosigner release requirements per representative. As the cosigner, can I get student loan removed from my credit report now that the loan is paid in full?
     Once the loan is paid in full, it should fall off of your credit report.
     Typically, lenders report this information on a monthly basis. If you need something urgent for a mortgage application or something similar, you can contact Sallie Mae and they should be able to provide you a paid-in-full letter.
3. ! Ken Clark  
   I cosigned a loan for my sister in 2006. The first payment was made in 2008. there is now more money owed that the amount of the original loan due to untimely payment from my sister. she and her husband choose not to pay on time. My sister and husband now say they will not pay any more and I need to get a new loan to cover or continue to pay Navient. My sister and her husband can afford the payments, yet they choose not to pay for personal reasons. My sister has a habit of not paying for her loans and leaving the cosigner hanging, repeatedly. She has been unable/unwilling to make 12 months of payments on time for the full amount of the payment due. Six consecutive years she has told me this 12-month plan for my release. My intention is to file suit against her but are there any other options to get me released. Is there another way aside from going to court?
     That sounds like an awful situation.
     Unfortunately, there really are not any protections for consigners in your situation. Navient will likely tell you that if your sister doesn’t pay, then you will have to.
     The cosigner release usually requires a borrower to have made timely payments for at least a year and to be able to pass a new credit check.
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