How to Remove a Co-Signer From a Student Loan

Once you have established yourself and are in a financial position to pay your student loans independently, it is possible to take a co-signer off your current loan. This will improve your credit score and make the co-signer happy. Follow these steps to remove a co-signer from a student loan once you become eligible to sign yourself.

Difficulty: Moderately Easy

Instructions

1. Make sure you have been paying your loan on time. The only way you are going to be able to get out of having a co-signer is if you have been paying that particular student loan on time for an extended period of time.

2. There are two ways to remove a co-signer: you can refinance the loan or contact your lender.

3. Refinancing is the process of getting a new loan at a lower interest rate to pay off the original loan. Loans can be refinanced with the original lender, or you can get a loan from another lending institution which may offer better rates and terms.

4. Another way to get rid of a co-signer is to contact your lending institution and request the co-signer be taken off. The lender will run your credit, and if it is sufficient, you will be able to take on your loan individually.

Tips & Warnings

• Pay back your loan on time. You will not be allowed to take your co-signer off the loan if you can’t make payments on time.
• Think about consolidating your loans. This will give you one lump payment with better rates and terms than the loans individually.
• Do not abandon the co-signer until you are absolutely secure in your financial status.

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