Remove Cosigner from Student Loan and How will it affect you?
A co-signer is a person who agrees to pay the loan in case the borrower is unable to repay the loan. The higher the credit score of the borrower and the co-signer the more likely your loan will be approved.
A co-signer release is a feature of student loan where a co-signer of the loan can be released from the loan after a certain number of on-time payments are made. There are various other points to be considered while undergoing this process:
Lenders offer co-signer release to trustworthy borrowers who have made consecutive, on-time payments (principal+interest).
After a minimum of 12 on-time payments, one can apply for the release of a co-signer.
By the end of 2 years, you should have a satisfactory CIBIL score.
Follow the steps below for co-signer release:
Contact your lender for the entire procedure and find out if you are eligible for the same.
Make sure you get your details/paperwork ready such as on-time payment details, co-signer detail forms, etc.
Apply for student loan co-signer release in your respective banks.
You can also release co-signer through student loan refinancing.
The removal of co-signer is a hectic and lengthy procedure. In case your lender rejects the application for the same, you can refinance your student loan in order to benefit from the new existing rates of interest and release your co-signer from the loan.
