Guide to Student Loan Refinancing With a Cosigner

Applying for student loan refinancing with a cosigner can improve your chances of approval and securing a lower interest rate, especially if their finances are stronger than yours. In fact, more than 86% of student loan refinance applications that included a cosigner on Credible were approved between November 2025 and October 2026. 

Here’s how refinancing with a cosigner works, how adding one can affect your application, and the benefits and risks to consider before applying. 

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Best lenders to refinance student loans with a cosigner

How does a cosigner affect loan approval and interest rates? 

Lenders consider both your finances and your cosigner’s when evaluating your student loan refinance application. Because a cosigner agrees to repay the loan if you can’t, adding someone with stronger finances can reduce the lender’s risk. This can be especially helpful if you have poor credit or don’t qualify for competitive rates on your own. 

The difference in rates can be significant. Borrowers with credit scores below 599 who prequalified for student loan refinancing through Credible received an average rate of 6.01% with a cosigner, compared with 8.86% without one — a difference of nearly 3 percentage points.

How does refinancing with a cosigner work? 

If you want to refinance your student loans and keep your cosigner, you’ll need to apply for a new loan together. This means both you and your cosigner will go through the application process again, including a credit check. If approved, you’ll both be equally responsible for the debt. If you want to switch cosigners when refinancing, you can simply apply with a new one. 

Most lenders allow cosigners on refinanced loans, and it’s usually a good option if your cosigner has better credit and higher income than you. This can help you qualify for a lower interest rate. 

See Also: Do Parents Have To Cosign Student Loans?

Cosigner credit score requirements  

Most student loan refinance lenders require a credit score in the mid- to high-600s, though minimum requirements vary. A cosigner with a score of 700 or higher may help you qualify for more competitive interest rates.

Below are the average prequalified rates by credit score for borrowers who applied to refinance student loans with a cosigner on Credible:

Should I refinance with a cosigner? 

Refinancing student loans with a cosigner may make sense if:

• You can't qualify for a better interest rate on your own: If your credit score or income is holding you back from getting a lower rate, a qualified cosigner could help you access better terms.
• You have someone willing to share financial responsibility: A parent, spouse, or other trusted person with good credit and stable finances may be willing to cosign, but they’ll be equally responsible for repayment, and missed payments could damage both of your credit scores.

If you refinance federal student loans, you'll permanently lose access to federal benefits, including income-driven repayment plans, loan forgiveness programs, and payment relief options like deferment and forbearance. Consider whether the potential savings are worth giving up these protections, especially if your income is uncertain or you qualify for loan forgiveness.

Pros and cons of refinancing with a cosigner

Details on the pros

• 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.

Details on the cons

• 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.

How does refinancing affect cosigners?

In the eyes of lenders and credit bureaus, loans are just as much the cosigner’s responsibility as the primary borrower’s. Failing to make payments could have negative consequences for your cosigner. For example, a missed payment can lower their credit score and lead to late fees.

Before choosing a lender, check whether it offers cosigner release, which allows you to remove your cosigner from the loan after making a set number of consecutive on-time payments. Not all refinancing lenders offer this option, so it's worth checking before you apply.

Steps to refinance with a cosigner

Here are the steps to refinance your student loan with a cosigner: 

1. Shop around for lenders: Narrow down your list of potential lenders. You can compare your options by getting several rate quotes through a process called prequalification. You can often do this without impacting your credit.
2. 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.
3. Apply for your loan online: Once you've chosen a lender, you can apply for your loan online. This step usually takes 10 minutes or less, but you'll likely need your cosigner to help complete the application (or have them provide their information ahead of time).
4. Sign your loan documents: Once your application 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.

Can my cosigner refinance the student loan in their own name? 

Most lenders require the primary borrower to refinance student loans. However, some lenders, like Earnest, allow the cosigner to refinance the loan in their own name. 

If your cosigner takes this step, they become the sole borrower on the new loan. You’re removed from the debt, and your cosigner becomes fully responsible for repayment.