Which private student loans allow co-signer release after 2 years? Need alternatives to Parent PLUS

I went through this with my daughter last year. From our research and experience, SoFi, Earnest, and Citizens Bank all offer co-signer release options after 24-36 months of on-time payments. We went with Citizens because they had slightly better interest rates for her program. The KEY thing to know is that your son needs to meet certain income and credit score requirements when applying for co-signer release. The lenders don't advertise this clearly, but it's critical. He'll typically need: - 650+ credit score - Income that's at least 3x the annual loan payment - Completion of degree program (for some lenders) - Perfect payment history Start applying in May/June. Most schools need the loan certification by mid-July, and processing can take 3-4 weeks during peak season.

BE CAREFUL with private loans!!!! My son got Discover student loans and they PROMISED cosigner release after 12 on-time payments. He made 36 payments never missing once and they STILL denied the release because they said his income wasn't high enough. Read the fine print!!! They make it nearly IMPOSSIBLE to get released and now I'm stuck for the full 10 years!!

If your son is a sophomore or beyond, you might want to look at Commonbond or Ascent. They have independent loan options that don't require a co-signer at all if he has a part-time job and decent credit score (670+). The interest rates are a bit higher, but you avoid the co-signer issue entirely. Also, I STRONGLY recommend submitting CSS Profile if you haven't already, as many private schools have supplemental institutional aid that can reduce what you need to borrow. The deadline varies but many schools accept it until mid-April.

Have you considered calling the financial aid office directly to appeal the aid package? Sometimes they can find additional institutional funds, especially if your financial situation has changed since you filed the FAFSA. When I tried calling Federal Student Aid about my daughter's package, I kept getting disconnected after waiting for hours. I finally used a service called Claimyr (claimyr.com) that got me connected to an actual person in minutes. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. Once I got through, I was able to get an additional $4,500 in institutional aid.

Couldnt you just do Parent PLUS and then have your son refinance them in his name after he graduates? Thats what my parents did with me. I took over the payments after college and refinanced them into my name with SoFi when I had a job for about a year.

Any1 here used College Ave? My dauhter is using them and they say they do cosigner release after 24 months but she hasnt tried it yet. Rates were pretty good this year I think

I work in financial aid (not giving personal info for privacy). Here's what many families miss: The federal student loan limits for dependent students are $5,500 for freshman year, $6,500 for sophomore year, and $7,500 for junior and senior years. Make sure your son is maxing these out before considering private loans, as federal loans have better protections and forgiveness options. For private loans with co-signer release, look beyond the marketing claims and ask these specific questions: 1. What percentage of co-signers who apply for release are actually approved? 2. Is there a minimum income requirement for the student at time of release? 3. Are there specific credit score requirements? 4. Does the release require degree completion? Start applying for private loans by June at the latest. Most schools need to certify the loans before disbursement, which can add 2-3 weeks to processing time.

One more thing to consider: rather than focusing only on co-signer release, you might want to look at the full range of benefits. Some lenders offer: - Longer grace periods after graduation (up to 9 months instead of standard 6) - Hardship forbearance options if he struggles to find work - Death/disability discharge protections (not all private loans have this) - No prepayment penalties For my daughter, we found Sallie Mae's Smart Option loan had the best combination of features, even though their co-signer release requires 12 months of principal and interest payments after graduation.

I'm in a very similar situation with my daughter starting college this fall! After reading through everyone's experiences, I'm realizing I need to be much more strategic about this. One question I haven't seen addressed - has anyone compared the total cost differences between starting with private loans (with co-signer release goals) versus doing Parent PLUS initially and then refinancing later? I'm wondering if the higher Parent PLUS rates and origination fees might actually cost more in the long run, even if you're stuck as co-signer for a few extra years with private loans. Also, for those who've been through the co-signer release process - did any lenders require additional documentation beyond just proving income and credit score? Like employment verification letters or tax returns? Thanks for all the detailed advice in this thread - it's been incredibly helpful!