How Cosigner Release Works on Private Student Loans

If you or your parent cosigned a private student loan, you probably want to know: when can the cosigner get off that loan? It is a fair question. A cosigner takes on real financial risk. Their credit score, debt-to-income ratio, and borrowing power are all tied up until the loan is paid off -- or until the lender agrees to release them. The good news is that most major private lenders offer a cosigner release option. The not-so-good news is that qualifying for one is harder than most families expect.

This guide walks you through exactly how cosigner release works, which lenders offer it, what the timeline looks like, and what to do if your application gets denied.

Why Cosigner Release Matters

When a parent or family member cosigns your private student loan, they are equally responsible for every payment. If you miss a payment, it hits their credit report too. If you default, the lender can come after your cosigner for the full balance.

According to Sallie Mae's "How America Pays for College" 2025 report, families borrowed an average of $10,572 in student loans for the 2025-26 academic year, and private loans made up roughly 14% of all education borrowing. College Board's Trends in Student Aid data shows that about $13.2 billion in private student loans were disbursed in the most recent academic year. A significant share of those loans involved a cosigner -- some lenders report that more than 90% of their undergraduate private loans include one.

That is a lot of families with shared financial responsibility. Cosigner release gives both parties a way out once the primary borrower proves they can handle the loan on their own.

The Typical Timeline: 12 to 48 Months

Every lender sets its own rules, but most require you to make a minimum number of consecutive, on-time payments before you can even apply for cosigner release. Here is what the major lenders require for the 2025-26 academic year:

Sallie Mae: 12 consecutive on-time principal and interest payments. You must also meet credit and income requirements at the time of application.
Earnest: 12 consecutive on-time payments. The borrower must demonstrate sufficient income and creditworthiness.
College Ave: 12 consecutive on-time payments during the full repayment period (not while in deferment or forbearance).
Citizens Bank (now Citizens): 36 consecutive on-time principal and interest payments required.
Discover: 24 consecutive on-time principal and interest payments. Borrower must be a U.S. citizen or permanent resident and meet credit criteria.
Ascent: 24 consecutive on-time payments, plus the borrower must meet income and credit standards.
SoFi: Does not offer traditional cosigner release. Instead, SoFi encourages borrowers to refinance into a solo loan once they qualify.

As you can see, the fastest path to cosigner release is with lenders like Sallie Mae, Earnest, and College Ave, which allow applications after just 12 months of on-time payments. Citizens Bank sits at the other end with a 36-month requirement. And SoFi does not offer release at all -- you would need to refinance.

What Lenders Actually Require

Rankings

Compare private student loan options

Compare College Ave, Earnest, and Sallie Mae — with Sallie's rate matched to this program where available.

Rank #1Editor's Pick
Undergrad • Parent
College Ave
Best for: Students who want flexible repayment options and no origination fees
- 0.25% rate reduction with auto-pay
- Four in-school repayment options
- No application, origination, or prepayment fees
- Borrow from $1,000 up to 100% of cost of attendance
Rates
Lowest Rate 2.19%
2.19% - 17.99% fixed APR, 3.89% - 17.99% variable APR
Apply Now
Disclosures+
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2) As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (APR): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 7/20/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Rank #2
Undergrad • Parent
Sallie Mae
Best for: Undergraduate and graduate students, and parents, comparing competitive fixed- and variable-rate private student loans
- Competitive variable and fixed rates
- Multiple repayment options
- Cosigner release available
- No origination fees
Rates
Lowest Rate 2.39%
2.39% - 17.49% fixed APR, 3.75% - 16.95% variable APR
Apply Now
Disclosures+
Undergraduate School Loan/Smart Option Student Loan: Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not. Information advertised valid as of 07/02/2026. Rates: Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Cosigner Release: Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can't have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can't be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
Rank #3
Undergrad • Parent
Earnest
Best for: Borrowers who want a zero-fee¹ lender with flexible repayment options² across undergrad, grad, and professional school programs
- 0.25% Auto Pay³ discount plus 0.25% Loyalty⁴ discount for eligible returning borrowers
- No origination fees, late fees, or prepayment penalties¹
- Borrow $1,000⁵ to $400,000 with 5, 7, 10, 12, or 15-year terms⁶
- Four repayment options², a 9-month grace period⁷, and cosigner release for eligible borrowers⁸
Rates
Lowest Rate 2.29%
2.29% - 16.24% fixed APR, 4.74% - 16.60% variable APR
Check Eligibility
Disclosures+
Earnest Private Student Loans are subject to credit approval. ¹Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1. ²Repayment terms and repayment options available vary based on loan type. ³You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option. ⁴To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away. ⁵Residents of Hawaii must request a loan of at least $1,501. ⁶Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples: 1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10. 2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months. 3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0. ⁷Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. ⁸To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply. ⁹Includes 0.50% combined Auto Pay and Loyalty discounts. Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% - 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% - 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change. Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America. © 2026 Earnest LLC. All rights reserved.

Meeting the minimum payment timeline is only step one. When you apply for cosigner release, the lender will evaluate you as if you are applying for a brand-new loan. That means they look at:

Credit Score

Most lenders want to see a credit score of at least 650 to 700, though some set the bar higher. If you have only had student loans and maybe a credit card for a couple of years, your score might not be where it needs to be yet. According to FICO data, the average credit score for Americans aged 22-25 is around 660 -- right on the edge for many cosigner release programs.

Income and Employment

You will need to show steady income that is high enough to cover your monthly loan payments along with your other debts. Lenders typically look at your debt-to-income ratio. A ratio above 40% to 50% can disqualify you. If your monthly student loan payment is $350 and you earn $3,000 per month after taxes, your loan payment alone eats up nearly 12% of your income. Add rent, a car payment, and other bills, and that ratio climbs fast.

Payment History

This one is straightforward. You need a clean record of on-time payments -- no missed or late payments during the required period. Even one late payment can reset the clock. If your lender requires 24 consecutive on-time payments and you miss month 20, you may have to start the count over from zero.

Graduation and Citizenship

Some lenders require you to have graduated (or no longer be enrolled) before you can apply. Others require U.S. citizenship or permanent residency. Check your specific lender's terms so you are not caught off guard.

How to Apply for Cosigner Release

The actual application process is usually simple. Here is what it looks like at most lenders:

Check your eligibility. Log in to your loan servicer's website and look for a cosigner release application. Many lenders have this under account settings or loan management.
Gather your documents. You will likely need recent pay stubs or tax returns (W-2s or 1099s), proof of employment, and your Social Security number for a credit check.
Submit your application. Fill out the form and authorize the credit inquiry. This is typically a hard credit pull, which may temporarily lower your score by a few points.
Wait for a decision. Most lenders respond within two to four weeks. Some, like Sallie Mae, may process it faster.
Get confirmation. If approved, both you and your cosigner should receive written confirmation that the cosigner has been removed from the loan. Your cosigner's credit report should update within one to two billing cycles.

What If You Get Denied?

Denial is common. Some estimates suggest that fewer than 10% of cosigner release applications are approved on the first try. That sounds discouraging, but understanding why applications get denied helps you prepare better.

Common Reasons for Denial

Your credit score is too low
Your income is not high enough relative to your debt
You have missed or late payments in your history
You have not made enough consecutive on-time payments yet
You applied while still in school or during a deferment period

Your Options After Denial

Wait and reapply. If your credit score or income was the issue, give it six to twelve months. Pay down other debts, avoid opening new credit accounts, and keep making on-time loan payments.

Refinance the loan. This is the most reliable alternative. When you refinance with a new lender, you take out a completely new loan in your name only. Your cosigner is automatically released from the original loan because that loan gets paid off. Companies like SoFi, Earnest, and Splash Financial offer refinancing for borrowers with solid credit and income. Interest rates for refinanced private student loans in 2025-26 range from roughly 4.5% to 12%, depending on your creditworthiness and whether you choose a fixed or variable rate.

Ask your lender for guidance. Some servicers will tell you exactly why you were denied and what benchmarks you need to hit. That information is worth asking for.

Cosigner Release vs. Refinancing: Which Is Better?

Both options remove the cosigner from your loan. But they work differently, and one might be a better fit depending on your situation.

Cosigner release keeps your original loan terms in place. Your interest rate, repayment schedule, and remaining balance stay the same. You just remove the cosigner from the agreement. This is ideal if you already have a competitive interest rate and simply want to free your cosigner.

Refinancing replaces your old loan with a new one. You might get a lower interest rate if your credit has improved since you first borrowed. But you could also end up with a higher rate if the market has shifted. Refinancing also lets you adjust your repayment term -- you could switch from a 15-year loan to a 10-year loan, for example, which would raise your monthly payment but save you money on interest over time.

One key consideration: if you have multiple private loans, refinancing lets you consolidate them into a single payment. Cosigner release, on the other hand, applies to one loan at a time. If your parent cosigned three separate private loans, you would need to apply for release on each one individually.

Roadblocks to Watch

Even with a clear plan, a few things can trip you up during the cosigner release process.

Automatic payments do not always count. Some lenders require that payments be made during the "full principal and interest repayment period." If you are in an interest-only phase, income-based period, or deferment, those months may not count toward your consecutive payment requirement. Confirm with your lender which payments qualify.

Servicer transfers can reset your progress. If your loan gets sold to a different servicer (which happens more often than you would think), your payment history may not transfer cleanly. Keep your own records -- download statements monthly so you can prove your payment history if needed.

Credit inquiries stack up. Applying for cosigner release triggers a hard credit pull. If you are also applying for a car loan, credit card, or apartment lease around the same time, those combined inquiries can lower your score. Space out your applications when possible.

There is no federal requirement for lenders to offer cosigner release. This is entirely voluntary on the lender's part. A lender can change its cosigner release policy, tighten requirements, or even discontinue the program. Always check current terms before assuming you qualify based on older information.

Death and disability clauses vary. If the primary borrower dies or becomes permanently disabled, some lenders will release the cosigner and discharge the loan. Others will not. Read the fine print on your promissory note. Federal Student Aid's guidance covers federal loan discharge, but private lenders set their own rules.

Tips for Parents and Students

For parents who are cosigning now: Before you sign, check the lender's cosigner release terms. Pick a lender with a shorter timeline (12 months rather than 36) and clear eligibility criteria. Ask the lender directly: "What does my child need to qualify for cosigner release?" Get that answer in writing.

For students working toward release: Start building credit early. Get a credit card, use it for small purchases, and pay it off in full every month. Set up autopay on your student loans so you never miss a payment. And track your own payment history -- do not rely solely on your lender's records.

For both: Have an honest conversation about the timeline. If the student just graduated and is earning $35,000 per year with $40,000 in private loan debt, cosigner release may not happen in year one. That is okay. Make a plan together and check in every six months.

The Bottom Line

Cosigner release is a real option, but it is not automatic. You need to make on-time payments for 12 to 48 months (depending on your lender), build strong credit, earn enough income to satisfy the lender's review, and then formally apply. If you get denied, refinancing is a solid backup plan that can accomplish the same goal.

The most important thing you can do right now is check your specific lender's cosigner release requirements and start tracking your progress. Know your credit score, know your debt-to-income ratio, and know exactly how many consecutive on-time payments you have made.

If you are still comparing private loan options -- or trying to figure out how much you actually need to borrow -- CollegeLens can help you build a personalized plan. Enter any school and see a clear picture of your costs, aid, and borrowing options before you commit.

Sravani at CollegeLens