Cosigner release.

In plain English

Cosigner release is a feature some private student loans offer that lets a lender take the cosigner off the loan once the main borrower proves they can carry it alone. A cosigner is the person (often a parent) who agreed to repay the loan if the borrower does not, which means the debt sits on the cosigner's credit too. To qualify for release, the borrower usually must make a set number of on-time payments in a row and pass a credit and income check. Not every loan offers release, and the borrower has to request it; it does not happen automatically. The first step is to read your loan agreement or call your servicer to confirm release exists and learn its exact requirements.

01Why it matters

Until the cosigner is released, the loan affects their credit and borrowing power, and a default can damage two people instead of one. Getting the release frees your cosigner and is a sign you have built a solid payment history.

02The math, step by step

A graduate makes a long run of on-time payments, then passes the lender's credit and income check. The lender removes the parent cosigner, and the loan becomes the graduate's alone. The exact number of payments and credit requirements vary by lender, so check your loan agreement or call your servicer for the specific terms.

03What this is NOT

04Receipts

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