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How to Get Out of Being Co-Signer on Student Loan – 5 Suggestions

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How to Get Out of Being Co-Signer on Student Loan – 5 Suggestions

Did you get coerced, manipulated, guilt tripped or bribed into being a co-signer on a student loan?  Are you now hoping to get out of now that you see the dangers involved and the risk to your personal credit?

Many banks and most students will tell you there is no way to do this, but they would be wrong.  There are some ways of how to get out of being co-signer on student loan.  Here are our 5 suggestions on how to get out of being co-signer on student loan documents.

1. Applying to Release Cosigner on Student Loan

There are some applications at the lenders’ offices that you can fill out.  They are applications to release the cosigner on student loan documents.  This is a great way of how to get out of being cosigner on student loans, but it will require the cooperation of the lendee.  Whoever you co-signed the loan for will have a big part in the application.

There are also some stipulations that must be met before they will allow you to utilize this trick of how to get out of being cosigner on student loan.  These requirements change from bank to bank, but some of the most common stipulations are:

  • The student must have a good credit score.  If you are wondering if you release cosigner on student loan do they check credit on student- the answer is yes, they will.
  • The student must have a source of income.  They will not allow you how to get out of being co-singer on student loan if the student who took out the loan has no means of repayment.
  • The student must show a stable future career path. 
  • The student must have good grades in school, or must be graduated.

2. Discover Student Co-Signer Release

This one might or might not work for you.  What you need to do is look over ALL the information on the loan contracts.  This tip on how to get out of being co-signer on student loan will only work if you discover a student co-signer release within the contract.

You may want to consult an attorney or someone who is good with legaleze to help you with this.  If there is a way of how to get out of being cosigner on student loan available, it will be buried in the small print.  Once/ if you find it, head to your bank and utilize the loop hole you found.

3. Utilize Student Loan Cosigner Affidavit Support

Cosigner support is usually wrapped into a student loan deal to help protect the co-signer in the case of the student defaulting on the loan in some way.  This fear is probably what has led you to seek out ways of how to get out of being co-signer on student loan.

If the student who took out the loan does in fact miss payments or cause problems with the loan, as the co-signer, you are legally obligated to take over maintenance of the account.  If you have student loan co-signer affidavit support, then there are some means that will keep you from having to pay the amounts due.

This usually comes down to going after the student, taking what assets they have, and keeping them on a tight leash.  These measures are good as they protect you, but they are not always successful, which means you might still have to take on responsibility, and your credit will be hampered.  This is a measure that can help you, but you will still want to find some other ways of how to get out of being co-signer on student loan.

4. Pay the Amount in Full

If you have the funds available, you may want to look into simply paying the amount of the loan in full.  You can work it out with the student to pay you back in payments or through other means- and if they default on those terms, they won’t be hurting your personal credit.  This is a huge sacrifice to make, but it is one of the most effective means of how to get out of being co-signer on student loan.

5. File For Bankruptcy

If your financial struggles are so dire that you have nowhere else to turn, consider filing for bankruptcy.  Can cosigners of a private student loan declare bankruptcy?  Yes they can- and it actually releases them from the obligations associated with being a student loan co-signer.

This is the last thing we will list here on how to get out of being a co-signer on student loans, because it can do the most harm to you.  If, however, the reason you have come seeking for ways on how to get out of being co-signer on a student loan is that you are so burdened with creditors that your income can in no way keep up, then bankruptcy might be an option to consider.

This will take the student loan obligation away from you, and in most cases, will do nothing negative to the student you were endeavoring to help when you became a student loan co-signer.  Do not go into this option lightly.  Do your research and make sure that the benefits of filing for bankruptcy as a student loan co-signer out weight the negative consequences.

If it works well for you and your situation, this can be a very effective way of how to get out of being a cosigner on student loan documents.

There are other ways out there on how to get out of being co-signer on student loan documents, but these are the most effective.  Keep your eyes open, and ask the questions you have.  No question can be answered if it is never asked.  Do not be embarrassed to talk to personal bankers or attorneys who can help you understand how all the loan documents work, and how you can get them to work for you.