Parent co-signer removal option on student loans - does this actually exist?

sounds like they were talking about private student loans not federal ones. some private lenders like sallie mae and discover let cosigners be released after like 12-48 payments. federal loans dont need cosigners usually except parent plus but those stay in parents name

I went thru this exact same thing with my son last year! The loan you're looking for is definitely real - it's called co-signer release and it's offered by PRIVATE lenders, not through the federal loan program. That's probably why the school's FA office was dismissive, they mostly deal with federal aid. We went with Citizens Bank and they offer co-signer release after 36 on-time payments. SoFi, Earnest, and College Ave also have this option but the required payment periods vary. Each has different requirements though - some want to see the student has good income, graduated, and has good credit BEFORE they'll remove you. Just remember private loans don't have the same protections as federal ones (like income-based repayment). We had our son max out federal Direct loans FIRST before considering private options.

There's some confusion here I'd like to clarify. There are two types of student loans: federal and private. Federal student loans include: - Direct Subsidized Loans (for undergrads with financial need) - Direct Unsubsidized Loans (for all undergrads) - Direct PLUS Loans (for parents and grad students) Federal loans generally don't require co-signers except Parent PLUS loans, which remain in the parent's name permanently. Private student loans come from banks and other financial institutions. Many private lenders do offer co-signer release programs after a certain number of on-time payments (typically 12-48 months). Requirements generally include: - Consecutive on-time payments (often 24-36 months) - Student meeting credit score requirements when applying for release - Student demonstrating sufficient income to handle payments - Student having graduated or being in final year Each lender sets their own criteria, so you'll want to compare options carefully. Consider interest rates, fees, repayment terms, and hardship options in addition to co-signer release terms.

My kid's school said the same thing!!! They act like they know everything but they DON'T. Private loans DO allow cosigner release but u have to read the fine print carefully bc some make it REALLY hard to actually qualify when the time comes. Like they'll say ur kid needs 700+ credit score and 2x the loan amount in annual income which is basically impossible for most new grads. FAFSA loans are usually better anyway so max those out first

I work in financial aid and can confirm that co-signer release is a feature of PRIVATE student loans, not federal ones. The reason your financial aid counselor might have been confused is that they typically focus on federal aid options first, as they generally have more favorable terms. However, I'd strongly caution against choosing a loan solely based on co-signer release features. Here's why: 1. The interest rates on private loans are often significantly higher than federal options 2. Many students never actually qualify for the release when the time comes (lenders have strict requirements) 3. Federal loans offer income-driven repayment plans and potential forgiveness options that private loans don't If you're worried about your credit, having your daughter take out the federal loans in her name alone (if she qualifies for enough) might be a better option than co-signing private loans.

Has anyone actually successfully been removed as a cosigner? I'm in year 5 of my son's Sallie Mae loans and despite meeting all their listed requirements (36 payments, credit score above 750, income verification) they've denied our release request TWICE with vague reasons. Starting to think these release programs are just marketing tricks to get parents to cosign...

Wow, I'm genuinely surprised by how many of you have had trouble with the co-signer release actually happening. This is making me rethink our approach entirely. Maybe we should just focus on federal loans and try to bridge any remaining gap with her working part-time or us paying directly what we can each semester.

If you need to talk directly with FAFSA about your federal loan options, try using Claimyr (claimyr.com). I was stuck in the same confusion loop between what my son's college was telling me and what I was reading online about loan options. Spent DAYS trying to reach someone at Federal Student Aid. Found Claimyr and got through to a FAFSA rep in 10 minutes who walked me through all our options. You can see how it works here: https://youtu.be/TbC8dZQWYNQ They connected me right away and I got clear answers about what federal loans were available to us vs what would require going through private lenders. Saved me so much confusion!

Just want to add - whatever you decide, get EVERYTHING in writing about the cosigner release terms!!! When we signed my son's private loan paperwork, the rep verbally told us 24 months of payments, but the actual contract said 36 months AND required him to have graduated. Those extra 12 months made a big difference in our planning!

As someone who just went through this process last year, I can confirm that co-signer release is definitely real but comes with a lot of caveats that aren't always clearly explained upfront. We ended up going with a mix approach - maxed out federal Direct loans first (around $5,500 for freshman year), then used a small private loan from College Ave for the remaining gap. The key thing I learned is that even if you meet the "minimum" requirements for co-signer release (like 24-36 on-time payments), lenders still do a full underwriting review of your daughter's finances at that time. So her credit score, income, debt-to-income ratio, and employment history all get scrutinized again. It's not automatic even if you've been perfect with payments. One tip: if you do go the private loan route, consider starting with a smaller amount first year to test how the co-signer release actually works with that lender before taking out larger amounts in subsequent years. Better to find out their true standards early rather than be stuck with a large loan you can't get released from.