How to clear away a co-signer from a student loan

Ever regretted co-signing on that student loan for a friend? Let’s say you do not talk to the person anymore, and fear risking a damaged credit rating if they default on the loan. There is something you can do, you know. If you would like to get rid of being co-signer on that student loan, there are steps you can take, states Bankrate. Post resource – How to remove a co-signer from a student loan by MoneyBlogNewz.

As a student loan co-signer, be careful

Becoming a co-signer on a student loan means you are guaranteeing the loan or the debt. The loan becomes your responsibility if the student fails to pay it. Being able to make the payments is something you have to be able to do. Your credit rating could get hurt while getting credit could be hard in the future if you cannot pay it.

When co-signing a student loan, a creditor will give you a list of obligations. This can be explained to you. Get copies of the Truth in Lending Disclosure agreement and loan contract. Keep these around.

Education loan to refinance

First you need to get a release. Really, this ought to be standard for any student loan co-signer. If the student is making payments well enough on his or her own, the private education loan will sometimes allow the co-signer to get off the contract. There must also be other needs met. The student must be following all of these. The student will hopefully keep a good credit this way.

The student will have to refinance if a co-signer release isn’t possible. The student will be able to pay off the original student loan with the new loan at a lower interest rate. This can be done via the original lender, or through another lender if better rates and terms are accessible. Unfortunately, the student must have good enough credit to qualify for a refinance in the first place.

Students like the help

The student may be at risk if a co-signer abandons the loan. Without a co-signer, the student could be responsible for the loan. They might get the loan taken to collections if they cannot purchase it. In the case of government loans, even tax return money isn’t safe.

Information from

Bankrate

bankrate.com/finance/college-finance/is-there-a-way-out-for-student-co-signer.aspx

ehow

ehow.com/how_2002636_remove-loan-cosigner.html

Whalehook Loans

whalehookloans.com/2007/09/26/what-are-the-benefits-of-obtaining-or-removing-a-cosigner-from-a-student-loan/

No co-signer? No credit history? No problem.

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