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Student loan cosigner release: What it is and how to get it
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TL;DR
When someone cosigns a loan, it means they’re sharing responsibility for your debt.
A cosigner release makes you, the borrower, exclusively responsible for the repayment of your loan.
Earnest will automatically review eligible loans for cosigner release. Borrowers can also apply for it after they graduate, make 12 consecutive, on-time principal and interest payments, and meet other requirements.
Table of Contents
Cosigners take a big risk when they agree to cosign a student loan. If at some point you, the borrower, can’t make payments, a cosigner is on the hook for your student debt.
And this can have consequences for them. It can hurt their credit, make it harder for them to pay their bills, make it difficult for them to qualify for a mortgage, negatively impact other loan options, and even jeopardize their retirement plans.
So, if you’re in better financial shape than you were when you took out your student loan, it might be time to consider a cosigner release.
What is a student loan cosigner release?
A student loan cosigner release lets you release your cosigner from their obligation to pay back your loan. If you’ve had a strong payment history and/or have improved your credit score since taking out the loan, the lender may agree to remove your cosigner from their responsibility.
Once your cosigner is released, it’s your sole responsibility to repay your loan. That’s why you must prove you can pay off all remaining balances on your own.
Why would you want to release a cosigner?
There are several reasons you might benefit from a cosigner release, including:
Your cosigner is responsible for the debt if you can't pay
If something happens and you can’t make your student loan payments, the lender will pursue your cosigner to repay the debt. Releasing a cosigner will relieve your cosigner from their responsibility, meaning your lender won’t pursue them for repayment.
If you miss a payment on your student loan, it can hurt your cosigner’s credit score
If you miss a student loan payment, both your credit score and your cosigner’s will take a hit. This can make it difficult to qualify for loans and competitive terms down the road. Cosigner release removes your cosigner from the loan, so they’ll no longer be financially responsible or affected by missed payments going forward. Keep in mind that the cosigner's credit report will still reflect all history prior to their release.
Your student loan debt shows up on your cosigner’s credit report, hurting their debt-to-income ratio
If you have a cosigner on your student loan, the loan will appear as an outstanding debit on their credit report and affect their debt-to-income (DTI) ratio, which compares monthly debt payments to gross monthly income.
A higher DTI can make it harder to qualify for other loans, such as a mortgage or car loan, because lenders may view the cosigner as a riskier borrower.
A cosigner release removes the student loan from your cosigner’s financial obligations, which may improve their DTI ratio and may make it easier for them to qualify for credit in the future.
How do you get a cosigner release for your student loan?
If being able to release your cosigner from your loan is important to you, it’s best to search for a lender like Earnest that offers this option before you take out the loan. If you’ve chosen a lender that doesn’t offer a cosigner release, it’s unlikely you’ll be able to find a way to release them unless you refinance.
The cosigner release process varies by lender but Earnest is unique in that we review eligible loans automatically for cosigner release, no application needed. Plus, you have the option to apply for cosigner release after graduating and making 12 on time monthly payments (or an equivalent lump sum)1.
How does a cosigner release work?
In order to release your cosigner from their responsibility, you have to prove that you are capable of paying back the loan on your own. Here’s what your lender will look for to make sure you can.
Private loans
If you’re a U.S. citizen or permanent resident and your lender offers cosigner release, the process will vary but in most cases, you’ll need to complete an application and initiate it on your own.
With Earnest, there are two paths to release a cosigner1 from your eligible loan(s), including:
Earnest will automatically review your loan and notify you if a release is an option.
You can apply on your own after you’ve graduated and made at least 12 consecutive, on-time principal and interest payments or an equivalent lump sum amount.
If you want to release your cosigner and have met all of the criteria, complete the cosigner release application. Then, submit it to Earnest online or by mail. We’ll review your application and get back to you with a decision within 30 days.
Refinancing: An alternative to a student loan cosigner release
Another popular way to release a cosigner is through student loan refinancing. Refinancing is when you take out a new loan to pay off your old ones. If you have multiple loans, your refinancing lender will pay all those off and issue you a single new loan with new terms. That includes a new interest rate.
If you’re in a better financial situation than when you first took out your loan, you won’t need a cosigner and can possibly get a lower interest rate as well, which can save you a significant sum over the life of your loan.
Student loan refinancing may allow you to change the length of your term, and the type of loan as well. Plus, you can choose between fixed or variable-rate loans. A variable-rate loan usually has a lower rate at the outset than fixed counterparts, but it may fluctuate over time.
A loan with a fixed rate won’t go up or down, regardless of whatever happens to financial markets or how interest rates for new loans change. The only way to change the rate you’re paying for a fixed-rate loan is to refinance.
Check your eligibility for free with Earnest
Earnest is widely recognized as a top private student loan lender, earning awards like Best Private Student Loan Lender by U.S. News & World Report. We offer flexible repayment terms2, an outstanding Client Happiness team, and automatic cosigner release1.
If you’re interested in a private student loan with a cosigner, you can prequalify and check your eligibility in about two minutes, without any impact to your credit score. We also offer a free payment calculator to estimate your monthly payments.
Learn more about our cosigner release and reach out to our Client Happiness team with any questions you might have about the process or our private student loans in general.
Next Steps Checklist
Review your lender’s cosigner release requirements
Make consistent, on-time student loan payments
Improve your credit score and overall financial profile
Verify your income and employment history
Apply for cosigner release with your lender or consider refinancing if your lender doesn’t offer it
Frequently Asked Questions (FAQ)
Does Earnest offer a cosigner release option?
As of May 2026, Earnest offers a cosigner release1 on private student loans, which allows borrowers to maintain their loan and repayment terms while removing their cosigner. Earnest will automatically review your eligible loan and let you know if a release is an option. Or you can apply on your own after you’ve made 12, on-time, on-time principal and interest payments or an equivalent lump sum amount.
How do I know if my student loan qualifies for cosigner release?
Eligibility depends on your lender’s policies. Most require a history of on-time payments, proof of income, and a credit check. With Earnest, you may qualify on eligible loans after graduating and making 12 consecutive on-time principal and interest payments (or an equivalent lump sum). See our full requirements.
What can I do if my student loan isn’t eligible for a cosigner release?
If your student loan doesn’t qualify for a cosigner release, you may still be able to refinance it in your own name. This will require a new application and approval process, which varies by lender.
Do I have to pay to release a cosigner?
No, most private student loan lenders don’t charge a fee to release a cosigner. However, you will need to meet certain criteria to request it.
Do all student loan lenders offer a cosigner release?
No, not all private student loan lenders let you release a cosigner. If you’re applying for a student loan with a cosigner, choose a lender that provides this option and review the eligibility requirements before you borrow.
How long does it take to release a cosigner?
The amount of time it takes to release a cosigner depends on the lender. Earnest, for example, takes up to 30 days to review cosigner release applications.
About the Author
Anna Baluch
Anna Baluch is a freelance finance writer from Cleveland, OH. She enjoys writing content that helps people from all walks of life make good financial decisions. Her areas of expertise include student loans, refinancing, mortgages, personal loans, budgeting, and debt management.
Disclaimer
This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.
Earnest Private Student Loans are subject to credit approval.
Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA® form to apply for federal student loans options. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at studentaid.gov.
1 To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply.
To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply.
2 Repayment terms and repayment options available vary based on loan type.