Experian reports that 35% of consumers have a credit score less than 670, which in most cases, isn’t high enough to qualify for a student loan refinance. That’s where bringing on a cosigner can make a difference. Adding a cosigner to your refinance loan can increase your likelihood of approval and save you money with a lower interest rate. Here’s how to do it.
Good to know:
Most refinance lenders require a score in the high 600s or above to qualify. If you don’t have this score, your cosigner will likely need it. Typically, borrowers with higher scores can access lower interest rates.
Many lenders offer student loan refinancing with the ability to add a cosigner. Before settling on a refinance lender, compare these factors to determine the right fit:
- Cosigner release: If you fail to make your student loan payments, your cosigner becomes responsible for the loan, which could damage their credit. Given the added risk, a cosigner might feel better if cosigner release is an option. Cosigner release allows you to remove your cosigner from the loan if you meet certain eligibility requirements, such as making a certain amount of consecutive monthly payments.
- Repayment terms: The length of time you have to repay your refinancing loan affects your monthly payments. A longer repayment term usually translates to lower monthly payments, but more interest costs over time. Review repayment terms from each lender so you can choose one that will fit with your budget.
- Interest rates: Many refinancing lenders offer both variable and fixed interest rates. Compare these rates and how each will impact repayment. Fixed rates lead to predictable payments and unchanging rates, while variable rates fluctuate, which means your monthly payments can change too.
- Hardship options: Research potential deferment or forbearance options that would allow you to pause payments temporarily in case of financial hardship.
- Lender benefits: Review benefits between lenders for savings opportunities or an improved loan experience. For example, some refinance lenders offer an interest rate reduction for borrowers who set up automatic payments.
Related: Should I refinance my student loans?
Citizens Bank offers cosigner-friendly refinance loans with the option to release your cosigner after making 36 consecutive, on-time payments of principal and interest. To refinance with Citizens, you or your cosigner need to earn at least $24,000 annually and have at least $10,000 in student loans to refinance.
Min. Credit Score
Does not disclose
Loan Amount
$10,000 - $750,000
Repayment terms between 5 and 20 years
Can prequalify and check your rates online
Autopay and loyalty discounts
Must make 36 payments before eligible for cosigner release
Must make 12 payments on your loans before you can refinance if you earned an associate degree or didn’t complete your degree
Relatively high loan minimum
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
EdvestinU offers competitive refinance rates though the lender has specific eligibility criteria to qualify: You or your cosigner will need a minimum credit score of 700, and an annual income of at least $50,000 if you're refinancing over $100,000 in student loans. EdvestinU requires at least 24 consecutive monthly payments before you’re able to release a cosigner.
Loan Amount
$7,500 - $200,000
No degree is required to refinance, and you can refinance while still in school
Autopay discount of 0.25 percentage points
New Hampshire residents can get up to 1.5% interest rate reduction
Prequalification is available
Refinancing is only available in select states
Minimum loan balance is higher than some competitors and maximum balance is lower
Cosigner release requirements are strict
Overview
EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
INvestEd provides one of the shortest timelines for cosigner release — just 12 months of consecutive, on-time payments.A minimum FICO score of 670 and an annual income of $36,000 are required to qualify. The loan minimum to refinance is $5,000.
Loan Amount
$5,000 - $250,000
No degree is required to refinance
Cosigner release available after just 12 on-time payments
Autopay discount of 0.25 percentage points
Deferment options for school enrollment, military service, or financial hardship
Lower maximum refinance limit than some competitors offer
No prequalification option to view your rates
No refinance options for international students
Can’t transfer parent loan to student
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
LendKey offers a cosigner release option, but the exact timeline varies and is specified in your credit agreement; it can range from 12 to 36 months of consecutive, on-time payments. The minimum loan amount is $5,000, but varies in certain states: $10,001 in Arizona, $50,001 in Connecticut, and $6,000 in Massachusetts.
Graduates with excellent credit
Loan Amount
$5,000 - $250,000
Autopay discount of 0.25 percentage points
No application or origination fees
Referral program
Borrowers with an associate degree can refinance
May have to meet membership requirements for credit unions or local banks
Exact terms vary by your chosen lender
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
MEFA allows student loan refinance applications with a cosigner but doesn’t offer a cosigner release option. Their refinance loans are typically a good choice for borrowers who didn't graduate, as there’s no degree completion requirement to refinance. Note, MEFA does not offer variable interest rates — only fixed.
Loan Amount
$10,000 up to the total amount
No graduation requirement to refinance
No fees whatsoever
Prequalification available
No rate discounts available
No variable interest rates
No cosigner release available
Parent student loans aren’t eligible
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
RISLA allows you to apply with a cosigner, but does not offer a straightforward cosigner release. To remove a cosigner, you would need to reapply for a new refinance loan solely under your name. A minimum household income of $40,000 is needed, and the smallest amount you can borrow is $7,500.
Loan Amount
$7,500 - $250,000
Income-based repayment options for borrowers experiencing financial hardship
Up to 24 months of forbearance
Up to 36 months of graduate school deferment
No degree required to refinance
Rate discounts available
No cosigner release
Limited repayment terms
Minimum $40,000 income required
No variable rates
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Education Loan Finance (ELFI) is a student loan refinance lender that allows cosigners, but doesn’t offer cosigner release. To release your cosigner from an ELFI student loan, you would have to apply for a new loan without your cosigner. You’ll need at least $10,000 in student debt to refinance with ELFI.
Loan Amount
$10,000 up to total refinance amount
Allows students to refinance parent PLUS loans in their own name
Student loan advisor assigned to each applicant
Transparent credit and income requirements
No application or origination fees
Up to 12 months of financial hardship forbearance available
Must have graduated with at least a bachelor’s degree to qualify
No cosigner release available
No rate discounts offered
Late fees and returned payment fees
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
To refinance student loans with a cosigner, you need to find someone eligible and willing to help you out. Stakes are high for cosigners. It’s not just about using their positive credit history to get approved for a loan. Cosigners take on a major responsibility and legally must repay the loan if you fail to meet your payment obligations.
Typically, cosigners are family members, like a parent or sibling. Additionally, you need to ensure that your potential cosigner meets the criteria for a “good cosigner.” Generally, that means a FICO credit score of 670 or above, and income and employment that can support the loan.
Tip:
Have a candid discussion with your cosigner about their responsibilities and expectations. If cosigner release is an option with your lender, discuss what that process looks like.
Related: Can I refinance student loans with bad credit?
Once you’ve chosen a refinancing lender and have an eligible cosigner, complete an online application. Fill it out completely and provide documentation for you and your cosigner, if requested. This can include:
- Social Security number or a government-issued ID
- Pay stubs and employer information
- Tax returns, if self-employed
- Billing statements for the loans you want to refinance
- Account information for your student loans
If you submit an incomplete application, it may delay your approval or lead to a rejection. Double-check that you’ve filled everything out and provided the necessary documents for you and your cosigner. After you review your application, press submit, and wait for the lender’s response.
Related: How to refinance student loans in 6 steps
There are two scenarios where refinancing student debt with a cosigner could make sense:
- You can’t qualify for a refinance loan on your own: If you have a FICO score that’s less than 670 or your credit history has negative marks, you probably won’t qualify for a student loan refinance on your own. Applying with a cosigner who has good credit could help you access these loans.
- You want to access lower interest rates: Various factors influence your interest rate, including your credit. You may qualify for a refinancing loan on your own, but if your cosigner has better credit, you could secure a lower interest rate — this can lower costs, making your loan more affordable.
Many private lenders allow you to refinance student loans with a cosigner. Applying with a cosigner can increase your chances of loan approval and could have a beneficial impact on your interest rate. While this can help you as a borrower, it’s important to understand that a cosigner is responsible for the loan if it’s in default.
Getting approval for a loan is difficult if you have limited credit history or a poor credit score. When you add a cosigner with excellent credit and a stable income, your chances of approval increase because the cosigner agrees to repay the loan if the primary borrower stops making payments. Cosigners can help with approval, and as an added benefit, they can also help lower your interest rate.
A good cosigner is someone with a good credit profile that’s free of negative marks, and with a FICO score of 670 or above. Additionally, a good cosigner has a stable income and assets to fall back on if the loan ends up in default.
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Loan Amounts
$10,000 up to total refinance amount
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Overview
EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Loan Amounts
$10,000 up to the total amount
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
Loan amounts
$10,000 up to your total debt
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Fox Business does not make or arrange loans.
Meet the contributor:
Melanie Lockert
Melanie Lockert is a freelance writer and the founder of the blog and author of the book, “Dear Debt.” Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Allure, Business Insider, Credit Karma, Fortune, and more.
