How a cosigner can help you get a student loan

What it means to have a cosigner

A cosigner is a creditworthy adult who signs your loan and is equally responsible for paying it back on time and in full. Since private student loans are credit-based and many students don’t have a credit history yet, a cosigner with good credit can make it easier for the loan to be approved and you may get a better rate. Last year, students were 3.5X more likely to be approved for a Sallie Mae^® student loan with a cosigner.^{footnote 1}

Student loan cosigners aren’t just for undergraduate student loans. If you’re applying for a graduate student loan and you don’t have a credit history, you may also benefit from having a cosigner.

Who can cosign your student loan

A student loan cosigner is typically a parent, but it doesn’t have to be. Last year, 28% of Sallie Mae^® Smart Option Student Loan^® cosigners were someone other than the parent.^{footnote 2} A cosigner can be a relative, guardian, friend, or spouse.

• Only one person can cosign for a private student loan.
• Your cosigner is just as responsible as you to pay back the full amount of the loan.
• Your cosigner can live in a different state than you.
• A cosigner should be someone you know and trust, and who is willing to fill out the application on their own.

Repayment responsibilities

You and your cosigner are both responsible for making loan payments on time. If a payment is missed, it affects both your credit and your cosigner’s credit.

Learn more about the responsibilities of being a student loan cosigner.

How to release your cosigner

You may want to release your cosigner if you’re looking to take full responsibility for your loan, improve your financial independence, help your and your cosigner’s credit, or avoid any problems with shared debt.

Certain lenders let you apply to have your cosigner released from your private student loan after you’ve graduated, made a certain number of on-time principal and interest payments, and met certain credit requirements. Basically, you need to prove you can pay back the loan on your own. And once you have, only you, the borrower, can apply for cosigner release.