A creditworthy co-signer can help you get the top private student loans with favorable interest rates. But being a co-signer means taking on a lot of responsibility: You're on the hook for any debt the borrower can't pay off. As a co-signer on a loan, that debt shows up on your credit report and your credit score is influenced by what the borrower does.
Many private student loan lenders offer a co-signer release, where a borrower can relieve their parent or guardian co-signed on a loan once they can make consistent payments on their own. This can be a beneficial move for both parties — the co-signer is no longer tied to the loan, it frees up access to new credit and borrowers can start to establish financial independence.
Below, CNBC Select breaks down the student loans with the fastest co-signer release. Each lender has unique co-signer release requirements, but all include making a consecutive stream of on-time monthly payments — just how many payments varies by lender. (See our methodology for more information on how we made this list.)
Compare private student loan refinancing rates
Best for release after 6 months
Edly Student Loans
Eligible borrowers
Qualifying juniors, seniors or graduate students
Loan amounts
Up to $25,000 total lifetime borrowing limit
Loan terms
84 months, or 7 years
Loan types
Variable
Borrower protections
Deferment and forbearance options available; all loans are on income-based repayment
Co-signer required?
No
Terms apply.
Pros
- Considers borrowers' schooling and programs
- Borrowers have hardship protections
- All loan payments are are income-based, so they're flexible and can adjust to your finances
- No co-signer required
- Payments while in school aren't required
- Enroll in autopay and make on-time payments to earn rewards
- Edly Career Counselors and Edly Student Success Team are available for support
Cons
- Only 7-year loan terms
- Only variable-rate loans
- Not available in every U.S. state
- Non-cosigned loans tend to charge higher interest rates
Who's this for? Edly is you want to be able to release your co-signer rather quickly since it only requires that the student borrower make six consecutive, full monthly payments post-graduation. Other requirements include passing a credit check, having a minimum FICO® Score of 600 and a debt-to-income (DTI) ratio of no more than 25%, as well as completing an application.
Standout benefits: Edly offers income-based repayment (IBR) plans on its non-cosigned and cosigned loans, as well as career training loans. This option is rare with private lenders, and allows borrowers to have a payment plan that adjusts as their income changes. Edly also has a Student Success Team for assistance like study prep.
Best for release after 12 months
Sallie Mae Student Loan
Eligible borrowers
Undergraduate and graduate students, borrowers seeking career training
Loan amounts
$1,000 minimum; maximum up to cost of attendance
Loan terms
Range from 10 to 15 years
Loan types
Variable and fixed
Borrower protections
Deferment and forbearance options available
Co-signer required?
Only for international students
Offer student loan refinancing?
No
Terms apply.
Pros
- Loans available to part-time students
- Co-signer release after 12 payments
- No origination, application or prepayment fees
- Accepts in-school payments
Cons
- No student loan refinancing
- No parent loans
- Hard credit check to prequalify
- Doesn’t disclose credit score requirements
- Late fee and returned payment charge
Who's this for? Sallie Mae is already a top student loan lender, but it helps even more that you can release your co-signer after just one year of monthly on-time principal and interest payments after they graduate or complete their certificate. Borrowers must fill out an application and meet certain credit requirements, as well as be a U.S. citizen or a U.S. permanent resident, provide proof of income and more.
Standout benefits: Sallie Mae stands out most for its low interest rates and fees, including a 0.25% rate discount when signing up for autopay. Its variety of repayment options includes interest repayment during school, $25 fixed repayment during school and deferred repayment after school. There's a 6-month grace period.
Best for release after 24 months
SoFi
Eligible borrowers
Undergraduate and graduate students, parents, health professionals
Loan amounts
$5,000 minimum (or up to state); maximum up to cost of attendance
Loan terms
Range from 5 to 15 years; up to 20 years for refinancing loans
Loan types
Variable and fixed
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Offer parent loan?
Yes - click here for details
Terms apply.
Pros
- High loan amount
- Variable and fixed rates, so you can choose
- No co-signer required
- No origination, application or prepayment fees
- 0.25% interest rate discount for autopay
- 0.125% interest rate discount on any additional SoFi lending product
- Offers student loan refinancing
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- No co-signer release option available
- Loan size minimum of $5,000
Who's this for? SoFi is great if you want to take advantage of SoFi's member benefits like referral bonuses, rate discounts on other SoFi loans and premium travel offers. It offers a co-signer release option after the borrower has made 24 months of full principal and interest payments.
Standout benefits: SoFi has no student loan fees, rate discounts, varied repayment options, multiple repayment terms, plus financial planning services. There's a 6-month grace period.
Best for DACA recipients and international students
Ascent® Funding
Eligible borrowers
Qualifying undergraduate juniors and seniors, graduate students
Loan amounts
Up to $200,000 for undergraduate and $400,000 for graduate loans
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
Deferment and forbearance options available
Co-signer required?
Only for international students
Offer student loan refinancing?
No
Terms apply.
Pros
- Considers borrowers with no credit
- High loan amount
- Variable and fixed rates, so you can choose
- Borrowers have hardship protections
- No co-signer required
- Offers co-signer release
- No origination, application or prepayment fees
- Up to 1% interest rate discount for autopay
- 1% cash back rewards
- Accepts in-school payments
Cons
- Non-cosigned loans tend to charge higher interest rates
- Doesn't offer student loan refinancing
Who's this for? Ascent Funding offers a quick co-signer release option after making 12 consecutive, full principal and interest payments on time, including DACA recipients and international students. Borrowers must apply, be able to show at least two years of credit history with a minimum credit score, have a minimum $24,000 per year income and have an acceptable monthly DTI ratio.
Standout benefits: Ascent's student loans are open to students coming to the U.S. to study. They have low fees and low rates if you apply with a co-signer, as well as a handful of repayment term options and a 0.25% rate discount when signing up for autopay. There's a 9-month grace period. Ascent also offers student borrowers perks like cash-back rewards upon graduation and expert coaching.
Best from a credit union
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
Who's this for? PenFed Credit Union is ideal if you prefer to bank with a credit union as it offers a fast 12-month co-signer release option. To release a co-signer, borrowers must apply and verify income. The credit union is easy for anyone to join: just open a PenFed savings account and deposit a minimum of $5.
Standout benefits: PenFed partners with student loan marketplace Sparrow where you can easily compare prequalified rates from multiple student loan lenders.
Compare private student loan refinancing rates
More on our top student loans with fastest co-signer release
Edly Student Loans
Edly offers student loans and career training loans, plus doesn't require a co-signer. The lender partners with FinWise Bank to offer its income-based repayment loans.
Loan amounts
Minimum $2,000; $5,000 - $15,000 per academic year; $5,000 - $10,000 additional for summer terms; $20,000 - $25,000 lifetime limit
Loan terms
84 months
Loan rate
Loan rate depends on type of loan taken out; autopay incentives apply
Loan fees
No application fee, no origination fee, no prepayment penalties
Sallie Mae
Sallie Mae is a public company that offers consumers private student loans and scholarships, as well as savings accounts like a traditional savings, a high-yield savings, a money market account and CDs.
Loan amounts
Minimum $1,000; if applying directly through Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school; if applying to Sallie Mae through partner website, loan amount may have a lower maximum
Loan terms
Loan term depends on type of loan taken out
Loan rate
Loan rate depends on type of loan taken out; 0.25% autopay discount available and choice between fixed or variable rate
Loan fees
No origination fee, no early repayment penalties
SoFi
SoFi got its name for student loan refinancing, but now offers all sorts of financial products beyond student loans: personal loans, mortgage loans, investing, credit cards, banking, insurance, estate planning and small business financing.
Loan amounts
Minimum $1,000; no maximum limit
Loan terms
5, 7, 10, 15 years
Loan rate
Loan rate depends on type of loan taken out; 0.25% autopay discount and an additional 0.25% discount for returning in-school borrowers available and choice between fixed or variable rate
Loan fees
No application fee, no origination fee, no late fees, no insufficient fund fees, no prepayment penalty
Ascent Funding
Ascent Funding offers student loans and scholarships, as well as consumer loans for bootcamp programs, which are career prep programs that some colleges offer.
Loan amounts
Minimum $2,001 (except for Massachusetts residents, which have a $6,001 minimum) - up to $200,000 for credit-based loans and undergraduate loans; up to $20,000 for outcomes-based loans; up to $400,000 for graduate loans
Loan terms
Loan term depends on the type of loan taken out
Loan rate
Loan rate depends on the type of loan taken out; 0.25% and 1.00% autopay discounts available and choice between fixed or variable rate
Loan fees
No application fee, no origination or disbursement fee, no penalty for early repayment
PenFed Credit Union
PenFed Credit Union offers its members everything from student loans and personal loans, to auto loans, mortgage and home equity loans, credit cards, bank accounts and IRAs.
Loan amounts
Minimum $1,000
Loan terms
Loan term depends on type of loan taken out
Loan rate
Loan rate depends on type of loan taken out
Loan fees
Loan fees depend on type of loan taken out
FAQs
How long does it take to remove a co-signer from a student loan?
How long it takes to remove a co-signer from a student loan depends on the lender. Each lender will require a certain amount of consecutive on-time monthly payments, which can range from 24 to 48 payments, which equates to two to four years. The fastest co-signer releases, though, (which you see on this ranking) can happen in two years or less.
Does SoFi offer co-signer release?
SoFi offers a co-signer release after 24 monthly payments.
Does Sallie Mae release co-signers?
Sallie Mae offers a co-signer release after one year of monthly payments.
Does refinancing student loans release co-signers?
Refinancing student loans effectively releases co-signers because a refinanced loan is essentially a brand-new loan with new terms.
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. See our methodology for more information on how we choose the best student loans with the fastest co-signer release.
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Our methodology
To determine which private student loans offer the fastest co-signer release, CNBC Select compared options from different national banks, credit unions, online and non-profit lenders.
Our main goal was to focus only on those lenders that offer borrowers the quickest path to releasing a co-signer. Not all lenders offer a co-signer release option, but for those that do, each requires that the borrow show they can make a consecutive stream of on-time monthly payments. The shortest time frame we found was six months. Multiple lenders offer a co-signer release after 12 or 24 months; for these ones, we narrowed in on other benefits the lender has, including catering to different segments of borrowers like DACA recipients, international students or credit union seekers. We also favored lenders with low rates and fees, as well as multiple loan term and repayment options.
There are other requirements that a borrower will need to meet before being able to release their co-signer. These vary by lender but can include meeting a minimum credit score and income level, as well as filling out an application.
Note that the rates and fee structures for private student loans are not guaranteed forever; they are subject to change without notice and they often fluctuate per the Fed rate. Choosing a fixed-rate APR will guarantee that your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your private student loan interest rate depends on your (or your co-signer's) credit score, income, debt-to-income (DTI) ratio, savings, payment history and overall financial health. To take out private student loans, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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