Cosigner Release for Private Student Loans

The most common things we see in our Financial Aid Forum every day is, "what loans can I get without a cosigner?" or "My parents don't want to cosign because they don't want another loan over their head." It's a prevalent and enduring problem, made worse by the economy and anxiety about job security.

However, the reality of the situation is the fact that most students simply can not afford college without the help of student loans. In some cases, federal student loans can be enough to cover your tuition (mostly for in-state public schools or two-year institutions), but affording private college and out of state schools can be much more difficult.

There are a lot of different rewards, benefits, and marketing techniques that private lenders use to try and prove their product is better than the competitor next door. However, one benefit that has become popular lately is cosigner release.

Cosigner release basically means that once you graduate from your degree program, you can request to have whomever cosigned on your loan released from their financial obligation. This is big. Cosigner release makes all of those "I don't want to be 'on the hook' for your loan" arguments invalid, assuming you make sure to finish school of course.

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If you're interested in checking out who offers this, have a look at our private lender comparison tool. It lists some popular lenders and their various perks and quirks for student loan offerings. As always, we recommend going federal before going private, but cosigner release definitely makes the prospect of a private student loan less uneasy for whomever you ask to help pay for school.

Want to learn more about co-signers and credit?

Student Platinum has a robust range of credit articles and educational resources to get you "in the know" about credit.

• How Credit Cards Work: A quick overview.
• Student Credit Card Debt Reduction Plan
• 5 Things Your Credit Card Company Doesn't Want You to Know
• Balance Transfer Primer
• Top 9 Student Credit Card Pitfalls
• What is APR?: Find out about APR, what it means for you.
• Pay Your Debt More Often
• Look out for Two-Cycle Average Daily Balance: Learn why it will kill your finances!
• Why Annual Fees Are Not Necessarily Bad