Can A Cosigner Be Removed From A Student Loan
Can a cosigner be removed from a student loan? How do I start the process of being removed as a cosigner on a student loan? If there questions sound familiar, chances are you have cosigned on a student loan for an individual who is no longer making their required monthly student loan payments. Cosigning on a student loan is extremely risky, as you are putting your personal credit profile on the line, and trusting another individual to be responsible for it. You should never take lightly to the notion of becoming an individuals cosigner, it is an extremely important responsibility to consider, as it could have negative impacts on your personal financial situation for years. It is important to understand that a cosigner is LEGALLY obligated to pay back the loan should the original borrower fail to do so. To answer the question of “can a cosigner be removed from a student loan”, the answer is, technically, no. However, if the person you have cosigned for has stopped making payments on the loan, you do have a few options to consider to help prevent a potential mess to your credit profile.
Your Options If The Person You Have Cosigned For Has Stopped Making Payments
1. Pay Off The Loan.
You can pay off the student loan in full yourself, and then have the borrower pay you back. This is one way to ensure nothing negative happens to your credit.
2. Consider Helping The Borrower With Payments.
If the borrower can make 2 to 3 years of consecutive on time payments (depending on the student loan terms) the borrower may request to have the cosigner removed from the student loan (and in some cases the borrower will have to also meet established credit criteria).
The above options are likely not what a person in the situation of wanting to be removed as a cosigner on a student loan would ideally hope for, but unfortunately those are the two most realistic options you do have. With that being stated, you should ALWAYS contact the lender of the student loans to see what, if any, additional options you may have for your specific situation. In the meantime, if you are the cosigner of a student loan, you need to keep a close watch on that situation. If the borrower begins to miss payments, you must take action and make the payments, in order to avoid negatively impacting your credit profile.