Student Loan Refinancing With a Cosigner

We get it. When refinancing your student loans, you’re looking for the best terms possible. That’s why many borrowers consider refinancing with a cosigner, which may unlock lower interest rates and comfier payment options. Learn more about how and why a cosigner could help you refinance your student loans.

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Frequently Asked Questions

You likely have questions about how a cosigner may play into your student loan refinancing options. We’re here to help answer them:

Can I refinance my loan without a cosigner?

Yes! Many lenders, including ELFI, allow refinancing without a cosigner if you meet credit requirements.

Does my cosigner need to be a family member?

No, a cosigner can be anyone with good credit who trusts you to repay the loan.

Can I remove my cosigner later?

ELFI does not offer cosigner releases on student loans or student loan refinancing. Should you choose to refinance your student loans again, you would then have the option of removing a cosigner.

What happens if my cosigner’s credit score changes?

If your cosigner’s credit score declines during the application process, it may affect your loan terms.

Will my cosigner’s financial obligations increase?

By agreeing to cosign your refinanced student loans, your cosigner’s credit and debt-to-income (DTI) ratio may be affected, since the loan is considered part of their overall debt.

Does my cosigner need to have more income than me?

Your cosigner’s income and credit history are both significant factors during the application process. However, whether you as the primary borrower or your cosigner make more income is not a factor impacting eligibility.

Do my cosigner and I have to complete ELFI’s application together?

We’ve designed our student loan refinancing application to be simple and accessible for both you and your cosigner. So, no need to worry if you and your cosigner are on different schedules—or in different time zones! Simply add their information, and we’ll send them what they need to complete!

Does my cosigner need to be a college graduate in order to qualify?

For ELFI, only the primary borrower is required to have graduated from an approved institution to be eligible for student loan refinancing.

Why Refinance Your Student Loans with a Cosigner: Pros & Cons

Put simply, a cosigner is someone who agrees to take responsibility for the loan if you can’t pay it. Having a cosigner with a strong credit history can improve your chances of approval and increase the amount you may be eligible to borrow. Your overall repayment cost may be minimized thanks to lower interest rate options, and another potential long-term perk? As the primary borrower, you get help building a healthy credit history.

However, it’s normal to expect a level of personal discomfort when bringing in a cosigner on your student loan refinance. They are putting their credit at risk should you not be able to follow through on your payments, and this can put a strain on your relationship. Cosigning a loan can’t be undone and cosigner releases often come with steep qualifications.

It’s essential to weigh these considerations before proceeding with refinancing. Discuss openly with your cosigner about responsibilities and expectations to help eliminate anxieties for all involved. And remember: as the primary borrower, you are still responsible for payment regardless of having a cosigner.

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What Information Does a Cosigner Provide?

Once you’ve found someone to cosign the loan, you can prepare to apply. Most lenders will require you and your cosigner to complete separate applications, and you’ll both need to provide the following information:

Contact information
Social Security Numbers
Unexpired driver’s license or other identification

Pay stubs, W-2 forms, or previous tax returns as proof of income

Employer contact information
Current student loan account information and balance

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Eligibility Requirements

Why Refinance Student Loans with a Cosigner: Pros & Cons

So, how much money could adding a cosigner save on a student loan refinance? It depends on your specific circumstances, but here are some hypothetical scenarios.

Balance:	$50,000
Remaining Term:	15 Years
Rate:	7.25%
Current Monthly Payment:	$456
Total to be Paid Over Loan Term:	$82,080

If you opt to refinance, here’s what your monthly payments and total paid over your loan term could look like with different rates, assuming your loan balance and term don’t change.

In this scenario, your chosen lender offers a 4% to 6% rate range, and you prequalify for a 6% rate independently and a 4% rate with a cosigner.

Rate	Monthly Payment	Total Paid Over Loan Term
6%	$422	$75,947
4%	$370	$66,572

Both your monthly and total payments will be lower with a lower rate, but the 4% rate will save you $86 per month versus just $34 with a 6% rate. The most significant difference is how much you’ll save over time — $15,508 with a 4% rate versus $6,133 with a 6% rate.

While this scenario is hypothetical, it shows how adding a cosigner could save you money both on a monthly basis and over the life of your loan. The monthly savings might even make you consider switching to a shorter term to pay off your debt faster. ELFI’s student loan refinancing calculator can offer more insight into potential savings.