If you want or must refinance student loans without cosigner support, you still have options.
Keep in mind that not all student loan refinancing lenders require you to have a cosigner. If you have good credit and consistent income, you might qualify on your own and potentially secure a lower interest rate.
Without a strong application, however, not having a cosigner minimizes your chances of acceptance.
Yes, however, while some private lenders may refinance student loans without a cosigner, some lenders may require you to have one. Typically, these lenders allow you to apply to release the cosigner from the loan after you make a certain number of on-time payments and meet other eligibility requirements.
Remember: A cosigner is a creditworthy person who applies for a loan with the main borrower and agrees to be held legally responsible for the debt if the primary borrower fails to repay the loan as agreed. A cosigner is usually a close family member or friend, but anyone who meets the lender’s eligibility requirements can be a cosigner. |
Many private student loan lenders also offer the option to refinance your federal student loans. Be aware, however, that you’ll lose government protections like forbearance and deferment, income-driven repayment plans, and the potential for student loan forgiveness if you refinance federal student loans. Depending on your situation, it could be better to consolidate your federal student loans into a Direct Consolidation Loan.
If you’re looking to refinance student loans without cosigner assistance, you’ll need to have a strong credit score, stable income, low debt-to-income (DTI) ratio, and consistent employment to get the lowest rates. But if you need to improve your financial profile, there are a few ways you can do so.
Federal student loans can’t be refinanced via the federal government, but you can refinance them with a private lender, perhaps without a cosigner.
If it makes sense to keep your federal loans federal, however, you can consolidate and combine them into one loan, called a Direct Consolidation Loan via the Department of Education. Through this option, you can apply without a cosigner to consolidate.
Bear in mind, private student loans don’t qualify for federal consolidation as they are from private lenders and not the Education Department.
With federal loans, the terms refinancing and consolidation are often used interchangeably. But there is an important difference between the two.
Unlike refinancing, the Debt Consolidation Loan is only available to borrowers with federal student loans, and there are no minimum thresholds or maximum limits. You can simplify your student loan management by combining federal loans into one loan, with one payment, for a term of up to 30 years. Of course, the longer your term, the more you’ll pay to your lender over the life of your new loan.
Should you refinance student loans without a cosigner? Consider the benefits and downsides of going solo before making your decision.
Pros
Cons
Related: Learn more about refinancing your student loans on Credible.com
While it’s possible to refinance student loans without a cosigner, you’ll generally need to meet credit score and income requirements to qualify. Here are some primary eligibility criteria for two Credible partner lenders who provide student loan refinancing without a cosigner.
The following two lenders are not Credible partners, but they may also be worth considering.
Credible evaluated loan and lender data points in 12 categories to identify some of the “best companies” for refinancing student loans without a cosigner. We looked at interest rates, repayment terms, repayment options, fees, discounts, customer service availability, and maximum loan balances offered by 20 lenders. We also considered each company’s willingness to refinance student loans without a cosigner, eligibility, cosigner release options, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check.
Choosing the best refinanced student loan likely means opting for the loan with the lowest interest rate and favorable terms. But it may be hard to qualify for one. Even lenders who offer refinancing without cosigners encourage applicants to apply with cosigners for the best odds of qualifying and receiving lower interest rates.
Good to know: You’ll likely need to have good or excellent credit to qualify without a cosigner. A good credit score starts at 670 on the FICO Score range and 661 on VantageScore’s tiers. Additionally, you’ll need to meet a lender’s minimum income requirements, which are not always disclosed. |
Eligibility requirements to refinance student loans without a cosigner vary by lender. Here are some of the most common requirements you may need to qualify:
| Remember: Cosigners are not required for federal student loans. |
Consolidating any federal student loans is most likely your best bet. However, that may not be an option if you have private student loans. What’s more, you may not need to refinance at all. Here are a few alternative options to consider:
Related: Learn more about refinancing your student loans on Credible.com