It is common for most college students to take a student loan or refinance loan to cope with their educational fees and supplies. Some lenders do not require a co-signer who can take your responsibility, but in the private sector, whenever a student applies for a loan, he must have a co-signer if they do not have a sufficient credit history or a permanent job.

After some time, if a student realizes that he does not need a co-signer anymore because he now has a permanent job or strong credit history, he has to fulfill some requirements for the co-signer release. This article will tell you the requirements, process, and the names of some lenders that offer co-signer releases.

What Is a Co-signer Release?

A co-signer release is when a lender agrees to remove the co-signer name from your loan agreement because now you have sufficient credit history and a permanent source of income to pay off the interest.

How to Release a Co-Signer from Your Student Loan?

Not all private loan lender allow their debtors to apply for cosponsor release. Some lenders allow you to remove a co-signer from your agreement, but before that, they check your credit history and income source to verify whether you can release a student loan. Following are some requirements and a process to request for co-signer release

Ensure Your Loan Payments Are On-time

When going through the application process, it's crucial to verify that your prior payments have been consistently made on time. Specifically, this entails a consecutive track record of timely payments for 12, 24, and 36 months without any deviations or late payments. This adherence to punctual payments is a key factor in the application process, ensuring eligibility for the program.

Improve Your Credit Score

You should make all the debt payments on time to keep your credit balance low. This will help convince your current lender that you can make further payments on your own. If your release student loan is high, you do not have to worry about it because it does not affect your credit score.

Proof Of Graduation

You are ineligible to apply for removal from your loan while you are still enrolled in school. To proceed with the release process, it's imperative to provide documented proof of your graduation to your lender. This evidence serves as a crucial requirement to demonstrate your qualification for loan removal once you have successfully completed your educational program.

Proof of Permanent Income Source

During the loan release application process, it's essential to provide evidence of a stable and permanent income source to satisfy your lender's requirements. This verification demonstrates your ability to meet the criteria for student loan release. Additionally, your lender may conduct a thorough examination of your credit history, emphasizing a clean record without any defaults and a consistent history of timely payments as factors that contribute to your eligibility for loan release.

Submit a Removal Application

Once you complete the above requirements, you must submit a removal application. Some of the lenders have online online-applications. If not, you can personally contact your lender and ask for the application.

These applications request a few things like financial situation, current income, living expenses, and other debts if you have one.

Companies That Offer Co-Signer Release

After selecting your lender, you can choose the companies that make the cosponsor release process quick and easy.

SoFi

SoFi, short for Social Finance, is a financial services company providing various financial products. They offer a cosigner release option for eligible students, typically requiring criteria such as being at least 18 years old and consistently making on-time payments for 24 consecutive months. This service assists students in gaining financial independence and autonomy in managing their loans.

Sallie Mae

Sallie Mae is another company that offers undergraduate loans, training loans, and graduate loans, and in addition to that, it helps you in sponsor removal. However, a few requirements of Sallie Mae to apply this process are stated below.

You should be an 18+ U.S. citizen or a permanent resident. You should have graduated or at least completed your certificate program, and You should have a permanent source of income.

RISLA

Risla stands for Rhode Island Student Loan Authority. It also offers loans such as Sallie Mae, such as undergraduate, graduate, parents, and refinance. Moreover, it also offers cosigner release on the following requirements. Once you have 24 consecutive timely payments, you become eligible to apply for Risla.

In addition to this, you must be 18 years old and a U.S. resident. Besides, you must earn at least $40,000 yearly. Having spare cash in your checking, savings, and investments will be good to cover your one-month financial requirements.

Ascent

Ascent also offers a sponsor release program if you have made 12 consecutive payments on time, but some other Ascent requirements must be fulfilled to proceed further. These requirements include being 18 years old and a U.S. citizen. Must have $24,000 yearly income. Moreover, you should have a two-year credit history with a minimum credit score.

Conclusion

Some students take loans from private lenders where it becomes necessary to have a cosponsor. If, for any reason, they realize that they can release student loans on their own, then they can apply for release. However, some companies offer co-signer release after you fulfill their certain requirements.