Cosigner Release for Student Loans: What Borrowers Need to Know

A student loan cosigner can make it easier to qualify and help you land a better interest rate. About nine out of 10 private student loan borrowers added a cosigner to their loan application in 2026, according to Credible data. Applicants with a cosigner also prequalified for an average interest rate of 7.72%, compared to 9.41% for those without one.

While they help borrowers, many cosigners don't want to be legally responsible for the entire repayment term. A cosigner release can relieve them of that liability long before the loan is repaid.

Here's what you need to know about cosigner release, how to qualify, and the forms and documents you'll need to submit for approval.

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What is a cosigner release for student loans?

A cosigner release is a loan feature some lenders offer that lets you remove your student loan cosigner once certain conditions are met. It's a good option for borrowers who have successfully made their loan payments and whose financial situation has improved since they originally took out the loan.

“A cosigner release shifts that responsibility entirely to you, the borrower, making you solely responsible for paying back the loan,” says Bethany Hubert, a financial aid specialist with Going Merry by Earnest.

Many college students need a cosigner to qualify for a private student loan, but that cosigner may not want to be responsible for the entire repayment term. A loan with a cosigner release option is a good compromise, as it lets the borrower use the cosigner to get approved and eventually allows the cosigner to remove themselves from the loan.

Some families may opt for a private loan instead of a federal parent PLUS loan because of cosigner release, according to Hubert. Parent PLUS loans are in the parent's name and can't be transferred to the student.

Many private loans allow you to get a loan based on your parents' (or other loved ones') credit, just like a parent PLUS loan, but then eventually let the parent be removed from the loan through cosigner release.

How does a cosigner release work?

To release a cosigner from your loan, you must first meet the lender's requirements. You must make a specific number of on-time payments, often ranging from 12 to 36. Some lenders may have even longer payment requirements. Cosigners on College Ave, for example, aren’t eligible for release until at least half of the repayment term is complete.

You must also typically meet credit and income requirements before your student loan cosigner will be released. These are often similar to what you’d need to qualify when applying for a new loan.

To qualify for cosigner release, focus on more than just meeting the required number of payments. Spend those early months or years increasing your credit score and maintaining a stable income so that, when the time comes, you can easily qualify to release your cosigner.

“Just because it's offered doesn't mean that a lender will actually process it,” says Robert Farrington, founder of The College Investor. “I've seen many cases where a borrower thought they'd qualify, but the lender would just continually reject their application — typically stating that they don't meet their underwriting criteria.”

Not all lenders offer cosigner release. If you want to take advantage of this option, narrow your search to lenders that offer it when you first apply for a student loan.

Submit a cosigner release form

Since cosigner release isn't usually automatic, you’ll have to request it, typically by submitting a form through your loan servicer. While the exact form varies by lender, most require:

• Proof you graduated or completed your program (a diploma, transcript, or certificate), if your loan required it
• Proof of income, such as recent pay stubs, W-2s, 1099s, or tax returns, if you're self-employed
• Proof of U.S. citizenship or permanent residency
• Authorization for a credit check

Once submitted, the lender reviews your payment history, runs a credit check, and confirms your income before approving or denying the request, which can take up to 30 days. If anything is missing from your application, that alone can delay or derail it, so gather your documentation before your final qualifying payment, not after.

Private lenders offering cosigner release

Not every private student loan lender offers cosigner releases, but many popular options do. The table below breaks down some of the top lenders with cosigner releases and how many payments you'll need to qualify.

Keep in mind that each lender also has requirements for your income and credit. It's important to explore those requirements before choosing a lender and applying for cosigner release.

Pros and cons of cosigner release

Cosigner release advantages

The key benefit of cosigner release is that your cosigner can be removed from your loan and the legal responsibility that comes with it. Not only does it eliminate the possibility of them having to repay the loan, but it also gives them the freedom to focus on their own financial goals.

“Cosigner release makes it easier for the cosigner to qualify for new credit, since it reduces their debt-to-income ratio,” says Mark Kantrowitz, publisher of Private Student Loans Guru. “This can help them qualify for a mortgage, auto loan, or credit card. The cosigner is free from the burden of the cosigned loan.”

Another perk of cosigner release is that, while you still need to meet certain income and credit requirements, you don't need to qualify for an entirely new loan. This is especially good news for borrowers with a low interest rate on their loans who may not be able to qualify for the same low rate.

Ultimately, cosigner release could also improve your relationship with the loved one who agreed to cosign your loan, since you no longer have a financial obligation complicating your relationship.

Cosigner release disadvantages

Opting for cosigner release also comes with some downsides. First, not all lenders offer it. If you think you may want to use this in the future, you'll have to keep that in mind when shopping around for your loan.

Even if your lender offers cosigner release, there is no guarantee that you'll qualify. Requirements often include several years of on-time payments, along with a stable income and good credit.

Another potential downside of a cosigner release applies if the primary borrower has good credit. In that case, the cosigner release could actually be less beneficial than just refinancing the loan altogether.

“You won't get the benefit of potential lower interest rates that come with a student loan refinance, as the loan's original terms, including the rates, stay the same,” says Hubert.

Tips for preparing for cosigner release

If you're on a private student loan with a cosigner, there are a few things you can do to help prepare for cosigner release:

• Choose a lender that offers cosigner release: Getting a cosigner release requires some proactive planning since not all lenders offer it. When applying for your initial loan, make sure to choose a lender that offers cosigner release.
• Make consistent, on-time payments: In most cases, a cosigner release requires a certain number of consecutive, on-time payments. Consider setting up autopay to ensure you never miss a payment.
• Improve your credit score before applying: You'll usually need good credit — or at least a credit report with no recent negative marks — to release your cosigner. While repaying your loan, take other steps to increase your credit score.
• Maintain stable employment: When releasing your cosigner, you'll need to prove you have sufficient and stable income to repay the loan yourself. Avoid leaving your job without having another stable one lined up.
• Communicate with your lender: Your lender can provide guidance on the cosigner release process, even if you aren't quite ready to apply yet. Take advantage of this resource to give you the best chance of success.

Alternatives to cosigner release

The best (and often only) alternative to a cosigner release is to refinance the loan in the primary borrower's name only. Refinancing involves taking out a new loan and using it to repay your existing one.

“This also means that the borrower would have to qualify for the new student loan completely on their own, which could be difficult,” says Farrington.

Refinancing can be especially challenging for a borrower with bad credit. Additionally, without a cosigner on board, you could end up with a higher interest rate than you have on your original loan.

Of course, that's not always the case. If you've managed to significantly improve your credit since you took out your cosigned loan, you could end up with a lower interest rate and other favorable loan terms.

The other alternative to a cosigner release is simply to keep the cosigner on the loan. This may be a less desirable option for your cosigner, who would continue to be responsible for your loan's repayment. However, if you don't qualify for cosigner release or a refinance loan, it may be your only option.