Millions of college students and graduates have student loans, and millions of those include cosigners. Though having a cosigner makes abundant sense so that you can qualify for a student loan, you should be purposeful about getting your cosigner released from the loans.
There are complications involved with a cosigner on a student loan, and they can negatively affect both the student/primary borrower and the cosigner. The only solution is to get the cosigner released as soon as possible.
The risks for cosigners for staying on a student loan
The vast majority of student loans involve cosigners, which is usually a parent or grandparent. The existence of a cosigner on a loan typically results in a lower interest rate, since it reduces the risk of loan default to the lender.
However, since student loans usually …show more content…
For that reason, the lender will have little interest in having the cosigner released from the obligation.
Since they may not volunteer the information, you need to specifically ask about it. If you are in the process of applying for student loans right now, make sure that there is a cosigner release provision. If not, you may want to consider other loan options.
Sallie Mae Cosigner Release
Sallie Mae loans provide cosigner release on student loans. Only the primary borrower on a loan can apply for cosigner release, and the loan(s) must not be delinquent while the request is processed. The primary borrower must have graduated, and must qualify to pay the loan on their own strength.
There is a long list of other requirements as well:
Provide proof of graduation or successful completion of certification program
Have made 12 consecutive, on-time principal and interest payments on the primary borrower’s Sallie Mae private education loan immediately before applying (interest-only payments made during school do not apply)
Provide proof of
There are complications involved with a cosigner on a student loan, and they can negatively affect both the student/primary borrower and the cosigner. The only solution is to get the cosigner released as soon as possible.
The risks for cosigners for staying on a student loan
The vast majority of student loans involve cosigners, which is usually a parent or grandparent. The existence of a cosigner on a loan typically results in a lower interest rate, since it reduces the risk of loan default to the lender.
However, since student loans usually …show more content…
For that reason, the lender will have little interest in having the cosigner released from the obligation.
Since they may not volunteer the information, you need to specifically ask about it. If you are in the process of applying for student loans right now, make sure that there is a cosigner release provision. If not, you may want to consider other loan options.
Sallie Mae Cosigner Release
Sallie Mae loans provide cosigner release on student loans. Only the primary borrower on a loan can apply for cosigner release, and the loan(s) must not be delinquent while the request is processed. The primary borrower must have graduated, and must qualify to pay the loan on their own strength.
There is a long list of other requirements as well:
Provide proof of graduation or successful completion of certification program
Have made 12 consecutive, on-time principal and interest payments on the primary borrower’s Sallie Mae private education loan immediately before applying (interest-only payments made during school do not apply)
Provide proof of