Bear in mind that asking someone to co-sign on your loan means you’re tying them to your financial outcomes with this specific debt. Also note that lenders aren’t required to grant you a co-signer release, which means your co-signer might be stuck on your loan until either the loan is paid off or you decide to refinance again without the co-signer.
How to Refinance Student Loans | Personal Finance
Written by ABC AUDIO on February 4, 2022
If you decide having a co-signer makes the most sense, you’ll likely need to repeat steps No. 2 and No. 4 above. In other words, you’ll want to double check the co-signer’s FICO score and re-apply to the top lenders, now including the co-signer’s proof of income, debts and other applicable information.
6. Always read the fine print
Before going forward, make sure you understand the lender’s policy on forbearance or deferment periods — for example, if you lose your job, what kind of protections do you have? Any at all? You should also look for information on the co-signer release policy, if there is one.
And always confirm that there are no origination fees or prepayment penalties. (These are both uncommon for student loans. None of the major lenders have them, but it never hurts to double check.)
7. Fill out the paperwork
Once you’ve been approved, what’s left is mostly paperwork. And luckily, you can complete this process entirely online with most lenders.
— to wacotrib.com
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