Best Student Loans With Cosigner Release in August 2025

If you need a cosigner to get a student loan, you’re not alone. In 2024, 84% of borrowers who applied for a private student loan did so with a cosigner, according to Credible marketplace data. And though fewer graduate students rely on cosigners, nearly 72% of their loans were cosigned.

Having a cosigner may help you secure the aid you need, but it’s also a significant responsibility and financial obligation for the cosigner. A student loan with a cosigner release can help you get the funds you need while providing your cosigner with a potential out. Here’s what you need to know. 

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10 best student loans with cosigner release

Why you can trust us

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan lenders with cosigner release, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

What is cosigner release on a student loan?

Some private student loan lenders offer a cosigner release feature. It allows the primary borrower, usually the student, to remove their cosigner from the loan after meeting certain eligibility requirements. This means the cosigner, often a parent or guardian, is no longer legally responsible for repaying the loan if the primary borrower fails to make payments. 

Cosigner releases can be beneficial for the borrower, as well. If approved, it shows that they’ve gained financial independence and can potentially improve their credit profile. However, not all lenders offer cosigner releases, and even those that do may deny a request if the borrower doesn’t meet specific requirements. As such, it’s important to understand cosigner release availability and criteria well before you (and a potential cosigner) sign your loan agreement. 

How do you qualify for student loan cosigner release?

“Once a borrower requests to have their student loan cosigner released, lenders will typically re-evaluate the borrower's credit, income, and debt-to-income ratio at the time of the request,” says Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators (NASFAA). “If it is deemed that the borrower’s financial profile can’t handle the debt, the lender may deny the release.”

Though exact cosigner release criteria vary by lender, many will require the following to establish creditworthiness before issuing approval:

• Make 12 to 36 months of consecutive, on-time payments: Most lenders require a positive repayment history before considering a cosigner release. The length of time varies by lender.
• Demonstrate financial independence: For release approval, the borrower usually needs to prove steady income and employment. This may also include showing a borrower-only repayment history. 
• Undergo a credit check: Your lender will likely re-evaluate your credit profile to confirm that you’ve demonstrated financial responsibility, such as making on-time payments across all debt accounts.

As part of your cosigner release efforts, you’ll likely need to complete lender-specific forms and provide supporting documentation, such as pay stubs and tax returns, that prove your financial stability. 

What are the pros and cons of cosigner release?

Cosigning a loan represents a significant financial obligation for the cosigner, including parents and guardians who agree to take on the responsibility so their child can pursue their degree. A release can give the cosigner peace of mind while improving their financial situation, as the loan no longer affects their credit or debt-to-income ratio. However, there are also benefits for the borrower.

“A successful cosigner release can positively impact the borrower’s credit profile by signaling financial independence and responsible repayment behavior,” explains Walter.

But cosigner releases aren’t guaranteed. Some lenders simply don’t offer releases, while others may make it challenging to understand or meet release requirements. In other cases, even when the borrower meets the requirements, they may still not receive approval.

“Borrowers can be denied a cosigner release even after meeting all the repayment requirements,” says Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling (NFCC).

“A report from the Consumer Financial Protection Bureau (CFPB) indicated that less than 1% of borrowers succeed in obtaining a cosigner release,” McClary notes. “Some of the common reasons include insufficient income, low credit score, indications of financial difficulty, and failure to meet other specific criteria unique to each lender.”

The table below provides an overview of the pros and cons of cosigner release:

Should you refinance to remove a cosigner?

If your lender doesn’t offer a cosigner release option, or if you’ve been denied one, refinancing without a cosigner may be your next best option. When you refinance a student loan, you take out a new loan to repay the old one. Since you’d be taking this step on your own, your original cosigner doesn’t appear on the new loan, essentially removing their student loan repayment responsibility. 

When you refinance, you’ll still need to meet lender eligibility requirements, much like you did for your original loan. These can vary by lender, but often include:

• Good credit: Generally, you’ll want a FICO credit score in the mid-600s or higher. If your credit isn’t quite there, you may still need a cosigner. There are several things you can do to improve your credit, such as making on-time payments and keeping your credit utilization low. 
• Stable income: To lenders, a consistent income over a period of time means you’re more likely to meet your monthly payment obligation. 
• Low debt-to-income ratio: Your debt-to-income ratio (DTI) is your total debt in the context of your gross monthly income. Generally, a good DTI is considered to be below 36%, though some lenders may limit eligibility to around 43% or less. You can use a DTI calculator to determine yours. 

If you have good credit, a stable income, and a low debt-to-income ratio, refinancing can potentially reduce your interest rate and monthly payments. If the opposite is true, you may see a higher rate or less favorable repayment terms in the absence of your cosigner's credit profile.

How to choose a student loan with cosigner release

Not all private lenders offer cosigner releases, and among those that do, eligibility requirements will differ. Use these tips to find a student loan with a cosigner release:

• Look for a clearly defined cosigner release policy: Consider choosing a lender that publicly outlines the requirements for cosigner release, including the number of on-time, consecutive payments, credit score thresholds, and income or employment expectations. 
• Prioritize shorter release timelines: Some lenders allow release after just 12 to 24 months of on-time payments, while others may require 36 or more. 
• Avoid vague or discretionary policies: Be cautious of lenders that say they may offer a cosigner release or that claim they do, but share limited or vague eligibility criteria.
• Read lender reviews: Real borrower experiences can reveal whether a lender actually follows through on cosigner releases or makes the process more difficult.

As you review your options, it’s helpful to get student loan quotes from each lender. This can help you compare rates and terms alongside cosigner release policies.

How to apply for a student loan with a cosigner release

If you’re planning to apply for a private student loan and want the option to release your cosigner later, follow these steps:

1. Research lenders that offer cosigner releases 

Not all private lenders provide this option, and among those that do, policies vary. Start by identifying lenders with clearly outlined cosigner release terms. As part of this process, be sure to review lender criteria, such as required online payments, minimum income thresholds, and credit score requirements to be eligible for a release. 

2. Gather necessary documents

When you apply for a private student loan, you and your cosigner will need to provide certain types of documentation, such as:

• Government-issued ID, like your driver’s license 
• Social Security number
• Proof of income, such as recent pay stubs or tax returns
• Employment information
• School certification or enrollment and cost of attendance

3. Apply for the loan with your cosigner

Most lenders allow you to complete student loan applications entirely online by setting up and logging in to an account. You and your cosigner should complete the application together when possible.

Keep in mind that your cosigner’s credit and income information will be used to determine your rate and loan terms. As such, working with a cosigner with good to excellent credit and a reliable income is important. 

4. Choose a repayment plan

In most cases, you’ll be presented with more than one repayment plan. Opt for a plan you can afford in the long term. Your lender may require you to demonstrate financial independence prior to cosigner release by showing you can make principal and interest payments without the help of your cosigner. 

5. Track your progress toward release

Make all required payments on time and monitor your progress. You can begin the cosigner release process when you become eligible for cosigner release, often between 12 and 36 months. 

6. Apply for cosigner release 

Once you meet your lender’s cosigner release requirements, including making enough payments and meeting credit and income criteria, you can apply for a cosigner release. Generally, you’ll need to submit an application along with proof of income and employment, though the exact process will depend on your lender.