Getting removed as cosigner of a loan?

Cambiata

Is it possible to get a cosigner taken off a loan, specifically a federal student loan? Is it dependent on the credit score of the lendee?

VisionOfClarity

You should check with the bank that issued the loan to find out if they can and what the process is.

MushroomStick

I wouldn't think so. It would defeat the purpose of having a cosigner.

ceres

I figure the same as Mushroom, but I don't know so I would give the lender a call. I didn't even know that federal student loans could need cosigning (it didn't come up for me). I'd be interested to hear back on this.

WildEEP

You would have to re-finance it into a new loan or pay it off with the funds from a new loan.
If you re-finance or get a new loan, odds are you'll need a different co-signer, and yes its all dependent on your credit score.

Cambiata

Well, friend who I cosigned for says he will contact the dept of education on Monday to see if I can get taken off as cosigner.

(And before anyone says anything, I have learned my lesson about being cosigners on loans. Never again. At least it's for an amount small enough that I can pay it off if it comes to that)

Aioua

Removing a cosigner is essentially making an entirely new loan. When the loan was first originated they're lending $X to person Y and person Z, who are both responsible for paying it back. If you want to remove one of those people, now you've got to see if the remaining person can pay it back all by themselves. Since people usually get a cosigner when they couldn't qualify for a loan by themselves, they also usually won't qualify to have them removed.

Now, assuming the person who wants to stay on the loan does qualify, how easy it is depends on the lender. They might have a streamlined process, or you might have to start entirely from scratch like a brand new loan.

Cambiata

Aioua wrote: »

Removing a cosigner is essentially making an entirely new loan. When the loan was first originated they're lending $X to person Y and person Z, who are both responsible for paying it back. If you want to remove one of those people, now you've got to see if the remaining person can pay it back all by themselves. Since people usually get a cosigner when they couldn't qualify for a loan by themselves, they also usually won't qualify to have them removed.

Now, assuming the person who wants to stay on the loan does qualify, how easy it is depends on the lender. They might have a streamlined process, or you might have to start entirely from scratch like a brand new loan.

Well I'm hoping at this point he can get a different cosigner, if he doesn't have the credit to go it alone. He's married now and I'm hoping that either his wife or in-laws will have good enough credit to be the new cosigners.