Do You Need A Cosigner?

When applying to refinance student loans or borrow student loans, your lender may require a co-signer. If this happens to you, don’t worry. Many applicants need a co-signer to help get approved and get a lower interest rate. Here is everything you need to know about co-signers.

What is a cosigner?

If you have a limited credit history, you may need another creditworthy person (e.g., a parent, spouse, relative or friend supportive of your educational goals) to help you qualify for a loan. A creditworthy co-signer is someone who has strong credit and an ability to repay the student loan.

The benefit of a co-signer is that a lender considers the income and credit history of both you and the co-signer, which improves your chances of being approved for a student loan. A cosigner is equally responsible with you for the student loan obligation. You can learn more about which lenders offer cosigners and other benefits.

Top Picks For Student Loan Refinancing

September 2023

Advertiser Disclosure

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.

Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.

APR

6.24% - 9.99%

5.24% - 9.59%

5.24% - 9.99%

Get My Rate

View Details

on SoFi's website

Overview

Variable APR:

6.24% - 9.99%

Fixed APR:

5.24% - 9.59%

Minimum Credit Score:

650

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000 ($10,000 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

SoFi Student Loan Refinancing Review

5.72% - 9.74%

4.96% - 9.79%

4.96% - 9.79%

Get My Rate

View Details

on Earnest's website

Overview

Variable APR:

5.72% - 9.74%

Fixed APR:

4.96% - 9.79%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

No

Review:

Earnest Student Loan Refinancing Review

5.80% - 9.67%

4.99% - 9.74%

4.99% - 9.74%

Get My Rate

View Details

on NaviRefi's website

Overview

Variable APR:

5.80% - 9.67%

Fixed APR:

4.99% - 9.74%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,001 ($10,001 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

No

Review:

NaviRefi Student Loan Refinancing Review

5.28% - 8.99%

5.23% - 8.69%

5.23% - 8.99%

Get My Rate

View Details

on ELFI's website

Overview

Variable APR:

5.28% - 8.99%

Fixed APR:

5.23% - 8.69%

Minimum Credit Score:

680

Minimum Income:

$35,000

Fees:

None

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

ELFI Student Loan Refinancing Review

4.99% - 10.89%

4.96% - 10.99%

4.96% - 10.99%

Get My Rate

View Details

on Splash's website

Overview

Variable APR:

4.99% - 10.89%

Fixed APR:

4.96% - 10.99%

Minimum Credit Score:

640

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5 – 20 years

Borrower Residency:

All states

Hardship Deferment:

Varies

Co-signer Option:

No

Review:

Splash Financial Student Loan Refinancing Review

7.05% - 12.40%

6.79% - 10.99%

6.79% - 12.40%

Get My Rate

View Details

on Citizens' website

Overview

Variable APR:

7.05% - 12.40%

Fixed APR:

6.79% - 10.99%

Minimum Credit Score:

Not disclosed

Minimum Income:

$24,000

Fees:

No prepayment or origination fees

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Citizens Student Loan Refinancing Review

4.99% - 10.89%

5.24% - 10.99%

4.99% - 10.99%

Get My Rate

View Details

on Laurel Road's website

Overview

Variable APR:

4.99% - 10.89%

Fixed APR:

5.24% - 10.99%

Minimum Credit Score:

660

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Laurel Road Student Loan Refinancing Review

5.02% - 8.18%

5.24% - 10.68%

5.02% - 10.68%

Get My Rate

View Details

on LendKey's website

Overview

Variable APR:

5.02% - 8.18%

Fixed APR:

5.24% - 10.68%

Minimum Credit Score:

680

Minimum Income:

$24,000

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states, except ME, ND, NV, RI, WV

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

LendKey Student Loan Refinancing Review

Checking Your Rate Doesn't Affect Your Credit Score

Disclosures: SoFi | Earnest | NaviRefi | ELFI | Splash Financial | Citizens | Laurel Road | LendKey

What is a co-signer release?

Once you have been approved for to refinance student loans or get a new student loan, your cosigner may not want to be financially responsible for your student loan. In this case, some lenders will release the cosigner from his or her obligations to repay the student loan. This typically occurs after you have made a certain number of on-time monthly payments.

After the cosigner is released from the student loan, you will have sole financial responsibility for the student loan. Lenders will also want to assess your credit to ensure that you can repay the student loan on your own. You can learn more about which lenders offer cosigner releases and other benefits.

What are the requirements for a co-signer release?

While each lender has its own underwriting criteria, you will have to be able to demonstrate to y lender that once your co-signer is released that you can repay the student loan on your own. Here are some of the most common requirements:

• You must have graduated from college
• You must have made a certain minimum number of student loan repayments, including principal and interest (e.g., 12-36 monthly payments)
• You are employed and meet a certain minimum income threshold
• Your credit meets the underwriting standards of the lender

Benefits of co-signer release

Most of the benefits are for the co-signer who can be released.

• No further obligations to repay the student loan (sigh of relief)
• Credit score improvement
• Funds available to help co-sign other student loans (e.g., other college-bound children)

The borrower benefits as well. Yes, it can be a little scary to have sole responsibility for paying off student loans. But, it can be a confidence builder to know that you are financially responsible and have increased your independence.

Related Posts

The Top Lenders To Refinance Student Loans

How To Refinance Student Loans With Bad Credit

Why Refinance Student Loans