How to Get My Name Off of a Cosigned Education Loan

Many education loans from private lenders require student borrowers to have a cosigner. As a cosigner, you vouch for the student by putting your own money and credit on the line. If the student makes late payments, these appear on your credit report. If the student defaults on the loan, the lender will pursue you for repayment. Because your agreement to cosign is a legally binding contract, the lender has no obligation to remove your name from the loan. However, there are a few ways to do this with the cooperation of the student borrower and the lender.

Instructions

Cosigner Release

1

Contact the lender and ask whether the loan qualifies for cosigner release. This is a lender courtesy process of taking the cosigner's name off of the loan after the student borrower makes consistent on-time payments and has a good credit history.

2

Fill out the cosigner release form with the help of the student, and mail it to the lender.

3

Remind the student to continue making on-time payments while the application is processed. A late payment could cause the lender to reject the application.

Refinance Loan

4

Tell the student borrower that you would like her to refinance the loan. Ask her whether she knows her credit score. If her score is good, she might be able to refinance without a cosigner. If she is still only a year or two out of college and has missed payments or maxed out credit cards, she probably will need to find a different cosigner to refinance the loan.

5

Help the student borrower think of other people to ask to be a cosigner on the refinanced loan. Options include her parents, grandparents, aunts, uncles, adult siblings, spouse or close friends.

6

Research potential lenders for a student loan refinance. These include not only her current lender, but also other banks, credit unions or online lenders. Choose a few with the best interest rates and terms on the loans.

7

Help the student apply for a student loan refinance with one of the chosen lenders. When the refinance is finalized, the loan you cosigned will be paid in full, and you will have no further obligations.