Ask Jean: Cosigner Releases on Private Student Loans
Ms. Chatzky, I recently heard you say on the Today Show that if someone makes 24 consecutive payments on their student loan and it is cosigned that they can get it placed under their name. Was that only for federal loans? I have a private student loan with Citibank and they have told me that 48 payments are required. If you could clarify your information that would be great. I have made 44 payments on time and think it’s about time they let me have the loan. I have been doing my part. Thanks for your time, Travis
— travandsuz
Travis, you’re right – this is going to vary by lender. I said 24 months on that Today Show segment you saw because that’s about standard. But some lenders will only require 12 months of on-time payments, some 24 or 36, and others, like yours, may require 48. It’s something new borrowers can look into and take into consideration before they choose a lender – this is a great chart from my friends at FinAid.org that outlines the key details of major private lenders, including loan terms, interest rates, and this co-signer release information. As for you, you’re almost there – four more payments and you’ll be able to release your co-signer, so hang in there.
One last thing I should point out here is that some lenders also stipulate a few additional requirements. All require you to meet a certain number of consecutive on-time payments, but you should always read the fine print to make sure you don’t miss any other stipulations.
