If you're applying for a private student loan and don't have solid credit, a creditworthy co-signer can help you get approval with favorable interest rates and terms.
Co-signing a loan is a serious responsibility: It shows up on your credit report like any other debt, and if the original borrower defaults, you're responsible for payment.
Many private student loan lenders offer a co-signer release, which allows borrowers to relieve their co-signer after a certain number of on-time payments.
Below, CNBC Select has picked the best lenders for co-signer releases in a variety of categories. See our methodology for more information on how we made this list.
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Best for co-signer release after 6 months: Edly
Who's this for? Edly only requires borrowers to make six consecutive monthly payments before it will consider releasing a co-signer, the shortest term of any lender we've found. Other requirements include a minimum FICO® Score of 600 and a debt-to-income (DTI) ratio of 25% or less.
Standout benefits: Unlike most private lenders, Edly offers income-based repayment (IBR) plans on co-signed and non-cosigned loans.
Edly Student Loans
Eligible borrowers
Qualifying juniors, seniors and graduate students
Loan amounts
$2,000 up to $15,000 per academic year and up to $10,000 for summer terms; ($20,000 lifetime limit)
Loan terms
84 months
Loan types
Variable
Borrower protections
Deferment and forbearance; all loans are based on income-based repayment
Co-signer required?
No
Terms apply.
Pros
- Considers borrowers' schooling and programs
- All loan payments are income-based
- Hardship protections available
- No co-signer required
- Student success team and career counselors available for support
Cons
- Only 7-year loan terms
- Only variable-rate loans
- Not available in every state
- Non-cosigned loans tend to charge higher interest rates
Best for co-signer release after 12 months: Sallie Mae
Who's this for? Sallie Mae lets you release a co-signer after just 12 consecutive on-time payments, which is still shorter than many lenders. That, combined with its low interest rates and lack of fees, makes it a top option for borrowers.
Standout benefits: Sallie Mae offers a six-month grace period and a variety of repayment options, including in-school interest-only or $25 fixed payments.
- Loans available to part-time and continuing ed students
- Co-signer release after just 12 payments
- No origination fee
- Offers loans for a wide variety of educational needs including: bar study, medical school, residency and relocation costs, dental school, residency and relocation costs, nursing school/health professions, commercial flight school, coding boot camp and professional certifications
- No student loan refinancing
- Doesn't offer parent loans
- Hard credit check to prequalify
- Late payment fee
Best for borrower benefits: SoFi
Who's this for? Like Sallie Mae, SoFi lets borrowers apply to release co-signers on original loans after 12 consecutive on-time payments. However, SoFi doesn't have a co-signer release option for refinanced student loans. What it does have is plenty of borrower perks, including an annual $250 cash bonus for eligible borrowers with a GPA of at least 3.0 and unemployment protection that allows you to put payments on hold for up to 12 months while you look for work.
Standout benefits: SoFi is a full-service bank, and existing SoFi Plus customers may qualify for an additional 0.125% rate discount on student loans, plus travel discounts, bonus credit card rewards and more
- $25/month partial interest payment option available while you are enrolled at least half-time
- 0.25% interest rate discount for autopay
- Co-signers eligible for release after 12 consecutive payments
- Offers a $250 bonus to eligible borrowers with a 3.0 GPA or better
- Existing SoFi members may qualify for an additional rate discount
- Good to excellent credit is typically required for approval
- $5,000 minimum loan amount is higher than other lenders' minimums.
- Interest Rates: Eligibility and Important Details. Fixed rates range from 2.45% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 7/6/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility-criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases.
Best for international students: Ascent
Who's this for? Ascent Funding is among the lenders that allow international students and DACA recipients to take out student loans, provided they have a U.S.-based co-signer. Borrowers who meet credit and debt-to-income ratio requirements and earn at least $24,000 per year can release their co-signers after just 12 consecutive on-time payments.
Standout benefits: Ascent offers cash-back rewards at graduation, a nine-month grace period and consumer loans for bootcamp programs.
- Considers borrowers with no credit
- High loan limit
- Co-signer release available after just 12 payments
- Up to 1% interest rate discount for autopay*
- 1% cash back rewards*
- Considers alternative requirements like the borrower’s school, program, graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress (SAP) to grant approval
- Maximum fixed APR is on the high side
- Doesn't offer student loan refinancing
Disclosure: *Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 7/15/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower's credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
Best for refinanced student loans: PenFed Credit Union
Who's this for? PenFed Credit Union allows borrowers to release co-signers from refinanced student loans after making 12 consecutive on-time payments and meeting income and credit requirements.
Standout benefits: To be a member of PenFed, you just need to open a checking or savings account with a $5 deposit.
PenFed Student Loan Refinancing
Cost
$0; no application fee or origination fee
Eligible loans
Federal and private graduate and undergraduate loans
Loan types
Fixed rates
Variable rates (APR)
N/A
Fixed rates (APR)
4.49%-6.68% APR
Loan terms
5, 8, 12, or 15 years
Loan amounts
Minimum amount is $7,500 and maximum amount is $300,000
Minimum credit score
Not disclosed
Minimum income
Not disclosed
Allow for a co-signer
Yes
Terms apply.
Pros
- Ability to check your rate without hurting your credit score
- No prepayment penalties
- Larger maximum loan amount for refinancing
- Online application that can be completed in as little as 15 minutes
Cons
- Must be a member to refinance your loan
What are the advantages of getting a co-signer?
If you need private student loan financing but don't have sufficient credit, getting a creditworthy co-signer is one of the most common solutions.
- Increased chance of approval: Students' lack of credit history often results in lender denials. A co-signer with good credit can make it much likelier the borrower will be approved.
- Lower rates: A borrower with a creditworthy co-signer poses less risk to a lender, enabling them to secure a more attractive interest rate and save money over the life of the loan.
- Larger loan amounts: Even if a borrower with weak credit is approved, they may not get the full financing they need for their education. A co-signer can help get approval for higher loan limits to cover tuition, room and board and other expenses.
- Building credit history: While the original borrower started with bad credit or a thin credit history, continued on-time payments will be reported to the credit bureaus, boosting their credit score. Eventually they may be able to release their co-signer from their obligation.
What are the disadvantages of getting a co-signer?
While a co-signer can mean the difference between approval and rejection, there are significant downsides to consider.
- Relationship strain: Even asking someone to be a co-signer can cause tension. If you miss payments or default, it can severely damage friendships of family ties.
- Shared credit consequences: The loan will appear on the co-signer's credit reports, as well, and impact their ability to borrow or open new lines of credit. Late payments will affect both credit scores.
- Legal responsibility for the debt: A co-signer is as responsible for repayment as the borrower and can be held liable by the lender for the balance. If the account goes into default, the co-signer may face collection actions, lawsuits and other consequences.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Undergraduate and graduate students, parents, students in MBA, law, health professional and dental programs
$5,000 (or state-mandated minimum) up to the cost of attendance
5, 7, 10, 15, years; up to 20 years for refinancing loans
Terms apply.
Undergraduate and graduate students, parents
Amount varies by individual lender
Range from 5 to 20 years
Terms apply
How to get a co-signer release for a student loan
Almost all private student loans have a co-signer release option. Each lender has slightly different requirements; check with yours to make sure you know all the fine print. Generally, you must:
1. Make the required number of on-time payments
Depending on the lender, you typically must make 12, 24, 36 or 48 on-time consecutive payments before applying for a co-signer release. If you made fixed or interest-only payments during school, those may not count.
2. Meet the lender's income and credit requirements
When you take out a student loan with a co-signer, you qualify based on their credit history and financial profile. To remove the co-signer, you must meet those requirements yourself.
You'll need a FICO score in the high 600s and enough income to afford your debt payments and other expenses. Most lenders also require that you graduate from your program and have U.S. citizenship or permanent resident status.
3. Submit a co-signer release application
You'll need to disclose financial information, including your income, housing payments and other debts. Your lender may also check your credit report.
Some lenders and servicers, including Sallie Mae, have co-signer release applications available online. Otherwise, contact your lender or servicer to request one.
Compare private student loan refinancing rates
Co-signer release FAQs
What is a co-signer release?
A co-signer release allows a borrower to remove their co-signer from responsibility for repaying the loan, typically after making a certain number of on-time payments. The borrower may also have to meet credit score and income requirements.
How long does it take to remove a co-signer from a student loan?
The number of monthly payments a borrower must make before they can release their co-signer varies by lender. The fewest we've found is six months, and the longest is 48 months.
Can I get a co-signer release for a refinanced student loan?
Some student loan refinancing plans allow for a co-signer and some lenders will allow borrowers to release their co-signer after a certain number of on-time payments.
Does co-signing a student loan hurt your credit score?
Co-signing can hurt your credit if the borrower doesn't make payments on time or defaults on the loan. Even if they do make timely payments, the loan is listed on your credit reports and will influence your credit utilization, which accounts for 30% of your credit score.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every private student loan lender review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
To determine which private student loan providers offer the fastest co-signer release, CNBC Select compared more than 20 banks, credit unions and online lenders that allow co-signers to be released before the loan was fully paid.
We focused on lenders that offered the quickest path to releasing co-signers but we also rated them on other criteria, including:
- The number of payments before a co-signer can be released
- Minimum credit score and income requirements for release
- Interest rates on student loans
- Whether it charges application and origination fees or a prepayment penalty
- The variety of loan terms available
- If it has diverse repayment options
- Whether borrowers can access hardship relief, including deferment and forbearance
- The quality of customer service
- Its share of the student loan market
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Interest Rates: Eligibility and Important Details. Fixed rates range from 2.98% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 5/21/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans), the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
