Mailbag Monday: Dropping the Cosigner on Student Loans
I had to co-sign for my son to secure student loans for going to college. Now he is two years out of college and has a full time job and meeting his payments completely on his own. My question is: Will I always have to be listed as a co-signer on these loans?
– James
Hi James, thanks for writing. The answer is not necessarily, and that’s because it largely depends on the lender. Many, like Sallie Mae, offer a cosigner release after the borrower has met certain obligations – under Sallie Mae’s program, the borrower must have completed school, made 12 to 24 consecutive on-time payments, and met underwriting requirements. Wells Fargo allows a cosigner release if the borrower meets credit requirements and has made all of the first 24 payments on time. Contact your lender for specifics about your loan – with two years of payments under his belt, you may qualify to be removed. If you don’t yet, you can at least find out the qualifications and then have your son work to meet them. Once he does, you should get off that loan.
