Which federal loan allows removing parent co-signer after on-time payments?

What they're probably referring to is the Parent PLUS loan co-signer release option, but there's some confusion here. Federal Parent PLUS loans don't technically have co-signers - the parent is the primary borrower, not the student. However, many private student loans do offer co-signer release after a certain number of on-time payments (usually 12-48 months depending on the lender). Sallie Mae, Discover, and SoFi all have this feature. The financial aid office is correct that no federal loan program allows a parent to be "removed" as a co-signer in the way you're describing.

sound like private loans 2 me. my sister got one from discover and they let her take me off after like 2 years of payments. federal loans r different tho

The financial aid office is right - there isn't a federal loan with that feature. What the person from the FAFSA workshop was likely referring to is a PRIVATE student loan with co-signer release. Companies like Earnest, College Ave, and Ascent offer this after about 12-36 months of on-time payments. I co-signed for my son's private loans and am currently working toward getting released after 24 payments. Before going the private route though, make sure your daughter has maxed out her federal loans first (Direct Subsidized and Unsubsidized) since they have better protections and repayment options.

THERE IS NO SUCH THING FOR FEDERAL LOANS!!! I got suckered into believing this too and now I'm stuck on my daughter's loans FOREVER. The financial aid office is right - anyone who told you differently is WRONG or talking about private loans. Don't make the same mistake I did!!!

i think i heard something about this at orientation too. maybe check with sallie mae? i think they do something where parents can get off after like 12 payments or something

To clarify some of the confusion in this thread: 1. Federal Direct loans (subsidized/unsubsidized) are in the student's name only - no co-signer. 2. Federal Parent PLUS loans are in the parent's name only - student isn't responsible. 3. Private loans often allow co-signers AND co-signer release after 12-48 months. If you're looking specifically for the co-signer release feature, you'll need to compare private lender terms. Just be aware that the student must usually qualify on their own (income, credit score, etc.) at the time of requested release, and many borrowers struggle to meet these requirements right after graduation.

I had the same issue trying to get accurate loan info! After spending DAYS trying to reach someone at Federal Student Aid, I discovered Claimyr (claimyr.com) and finally got through. They connected me directly to a FSA agent who confirmed that federal loans don't have co-signer release options like private loans do. The service was super easy to use - you can see how it works in their video demo: https://youtu.be/TbC8dZQWYNQ The FSA agent explained that for federal loans, parents taking out PLUS loans are primary borrowers, not co-signers. Only private loans offer true co-signer release options. It saved me from making assumptions based on conflicting information!

my cousin works in financial aid and she says a lot of ppl get confused about this. parent plus is in parents name ONLY. private loans let cosigners get released sometimes. thats probly what that person at ur workshop was talkin about

One thing to consider with private loans: even though they advertise co-signer release, the requirements to actually qualify can be pretty strict. My daughter made 30 on-time payments with Sallie Mae, but she was denied co-signer release because her debt-to-income ratio wasn't strong enough yet as a recent graduate. Make sure to read all the fine print about what's required beyond just making the payments.