How to Release Your Co-Signer: The Steps You Need to Know
If you’ve taken out a private student loan, chances are you needed a co-signer to get approved—especially if you had little or no credit history. But what happens once you’ve built up financial independence and want to take full responsibility for your loan? That’s where co-signer release comes in.
You might be wondering questions like…
What is co-signer release on a student loan?
How do I remove my co-signer from my student loan?
This blog will walk you through everything you need to know, from the eligibility requirements to the step-by-step process, including insights into how private lenders like Ascent make it easier to release a co-signer.
What Is a Co-Signer Release on Your Student Loan?
Co-signer release is a process that allows a borrower to remove their co-signer—often a parent or guardian—from the student loan agreement. This release relieves the co-signer of any legal obligation to repay the loan if the borrower defaults.
This can be a major relief for co-signers who want to reduce their financial liability or improve their own credit profile. For borrowers, it’s a milestone that often comes after proving financial responsibility and the ability to repay the loan independently.
Why Co-Signer Release Matters
Releasing your co-signer has several benefits for both parties:
- Financial independence: You’re showing lenders and credit bureaus that you can manage your debt alone.
- Improved credit for co-signers: Your co-signer’s debt-to-income ratio improves once they’re released, which could help them qualify for other loans or credit.
- Peace of mind: Both you and your co-signer can feel more secure knowing that the loan is now fully your responsibility.
Step-by-Step: How to Release Your Co-Signer
While every lender may have slightly different procedures, the general steps for co-signer release typically look like this:
Step 1: Review Your Loan Terms
Start by checking your loan agreement or logging into your loan servicer’s portal to see if co-signer release is even an option. Not all lenders offer it. Fortunately, some private lenders—like Ascent—make the process transparent and attainable.
Step 2: Meet the Eligibility Requirements
Before applying for co-signer release, you usually need to meet a few key criteria:
- Make on-time payments for a specific period (typically 12 to 48 consecutive months).
- Demonstrate sufficient income and employment history.
- Pass a credit check to show you can qualify for the loan on your own.
- Have no recent bankruptcies or delinquencies.
Ascent, for example, allows co-signer release after just 24 consecutive on-time principal and interest payments, making it more attainable than other lenders with longer timelines.
Step 3: Submit a Co-Signer Release Application
Once you meet the criteria, you can fill out a co-signer release application. This usually involves:
- Verifying your identity and loan account.
- Providing income documentation (pay stubs, tax returns, etc.).
- Agreeing to a credit check.
Step 4: Wait for Approval
After you submit your application, the lender will review your creditworthiness and payment history. This process can take a few weeks. If you’re approved, the co-signer will be officially removed from the loan agreement.
If you’re not approved, most lenders will let you know why and what you can do to qualify in the future—like improving your credit score or reducing other debts.
How Private Lenders Support Co-Signer Release
Many private lenders now recognize the importance of co-signer release and have built policies to make it easier. Here’s how some, like Ascent, stand out:
- Transparent policies: Ascent clearly outlines its co-signer release requirements and doesn’t hide the fine print.
- Shorter payment windows: While other lenders require 36 or even 48 months of payments, Ascent allows release after 24 months.
- No fees: There’s typically no fee to apply for co-signer release.
- Flexible credit review: Ascent considers both your credit history and your current financial situation.
👉 Click Here to Get Your Rate from Ascent
This kind of support can make a big difference for borrowers looking to take full control of their student debt. Compare all Private Lenders here.
Tips to Help You Qualify for Co-Signer Release
If you’re aiming to release your co-signer, here are a few strategies to boost your chances:
- Make automatic payments: This reduces the risk of late payments and demonstrates responsibility.
- Build your credit score: Use credit cards wisely, pay off other debts, and avoid hard inquiries.
- Increase your income: Take on side gigs, promotions, or new jobs to raise your income-to-debt ratio.
- Stay in touch with your lender: Ask for updates on your eligibility and get prequalified if possible.
What If Your Lender Doesn’t Offer Co-Signer Release?
If your current lender doesn’t offer co-signer release—or if you’ve been denied—you have other options:
- Student loan refinancing: Refinance the loan in your name only. This pays off the original loan and creates a new one without a co-signer.
- Loan consolidation: If you have multiple loans, consolidating them might make the process more manageable (though this doesn’t guarantee co-signer removal).
Just be aware that refinancing can affect your interest rates and loan terms, so always read the fine print.
Choosing the Right Student Loan for You — With Co-Signer Release in Mind
Now that you understand the importance and process of co-signer release, it’s time to think strategically about your borrowing choices—especially if you’re still in the early stages of funding your education or considering refinancing options. Choosing the right student loan upfront can make it much easier to remove your co-signer down the road.
Here’s a simplified guide to help you make informed borrowing decisions that support your long-term financial independence:
Step 1: Prioritize Federal Direct Student Loans First
Always start with federal student loans. These typically offer lower fixed interest rates, flexible repayment plans, and borrower protections. For undergraduates, Federal Direct Loans can cover up to $5,500 your freshman year, increasing slightly in later years. These loans don’t require a co-signer, which means you’re already in full control from day one.
Step 2: Explore Ascent Student Loans with Strong Co-Signer Release Options
If federal loans don’t fully cover your needs, turn to private lenders—but choose wisely. Focus on those that not only offer competitive rates, but also clear and achievable paths to co-signer release.
Why Ascent?
- ✅ Fixed APRs starting as low as 3.44%*
- ✅ Soft Credit Pull – No impact to your credit score
- ✅ Co-Signer Release Program available
- ✅ No Origination Fees
- ✅ Transparent, competitive rates you can trust
- ✅ Direct support to guide you through your options
- ✅ Exclusive, favorable terms available through the College Aid Pro community
Thanks to the strength and influence of the College Aid Pro community, we’ve secured exclusive student loan options with Ascent—available only to CAP families!
Step 3: Compare Additional Private and State Loan Options
Don’t stop at one lender. Compare offers from others like SoFi and Abe Student Loans, and check for state-specific options in places like Massachusetts, Rhode Island, and Iowa. Many of these also offer co-signer release—but always read the fine print to understand the timeline and requirements.
Step 4: Stack Up Offers Against Federal PLUS Loans
Before finalizing any private loan, compare it with the federal Parent PLUS loan. While these are federally backed, they come with a ~9% rate for Parent PLUS loans, plus the 4% origination fee. In many cases, borrowers with strong credit can find loans with better rates and more flexibility through private lenders.
Final Thoughts
Co-signer release is a significant milestone on your journey to financial independence. It’s a win-win for both you and your co-signer, and with the right planning, it’s well within reach.
If you’re asking, “What is co-signer release on a student loan?”—now you know it’s more than a technical process. It’s a powerful financial move. And with private lenders like Ascent offering clear and borrower-friendly paths, there’s never been a better time to explore your options.
