How Cosigners Work

If you’re applying for a student loan, it may be an advantage to have a cosigner on your loan. A cosigner—often a parent—is a person with a good/excellent credit history who supports your education goals and agrees to be held responsible for the loan if you fail to make your monthly payments. Having a cosigner with good or excellent credit may enable you to get a lower interest rate on your loan.

A cosigner:

• Is equally liable for the debt
• Is expected to make payments—including any late or collection fees—if the student borrower is unable to pay
• Receives a bill statement each month, along with the borrower
• Is reported to the national credit bureaus each month, along with the borrower
• Must sign all paperwork, along with the borrower

Cosigner Release 

Cosigner release may be available, upon request, to borrowers with a current account who meet lender requirements. This means your cosigner will no longer be responsible for the loan and will no longer have the debt counted on their credit report—freeing up their credit for other needs.

To learn more about cosigner release, check with your lender. If you're considering VSAC as your lender, learn more about cosigner release on eligible VSAC student loans by reviewing the following FAQs.

VSAC Cosigner Release FAQs

What are the eligibility criteria to be considered for cosigner release?

Cosigner release is a benefit available on some VSAC private education loans. To be considered for cosigner release on an eligible loan, all of the following must occur:

1. The loan must have been in active repayment for at least 48 months.
2. The loan must be current*.
3. The primary borrower must meet the applicable credit criteria.

*Current means that you have no past due payments. 

How do I apply for cosigner release?

Primary borrower:

1. Log in to MyVSAC.
2. Click on the “Loan Info & Make Payments” button.
3. Click on the “Cosigner Release Application” button and follow the instructions.

Cosigners are not able to apply for cosigner release, the application must be submitted by the primary borrower. 

When will I be able to select loans for cosigner release in the online application?

You will be able to select eligible loans once the loan meets all the eligibility criteria.

Why can I only select some of my loans for cosigner release in the online application?

Only loans that are current and have been in active repayment for at least 48 months can be selected. You will either need to bring the loan current (if it is past due) or wait until the loan has reached 48 months of active repayment before you can select the loan.

I’m a cosigner, can I see which loans are eligible for cosigner release?

No. Only the primary borrower can view through their online MyVSAC account which loans are eligible for cosigner release.

How do I check to see if I’m current on my loan(s)?

Primary borrower:

1. Log in to MyVSAC.
2. Click on the “Loan Info & Make Payments” button.
3. On the “Summary” screen, under “Past Due” it should say “You have no past due payments” if you are current.
4. You can also click on the “Cosigner Release Application” button and refer to the “Days Past Due” column in the chart. If you see a ‘0’ that means the loan is current.

Cosigner:

1. Log in to MyVSAC.
2. Click on the “Loan Info & Make Payments” button.
3. Select the applicable cosigned account that you want to view in the “Select an account” dropdown.
4. On the “Summary” screen for the cosigned loan, under “Past Due” it should say “You have no past due payments” if you are current. 

How do I check to see if I’ve reached 48 months of active repayment?

If you are the primary borrower, you can check to see if you’ve reached 48 months of active repayment by following these steps:

1. Log in to MyVSAC.
2. Click on the “Loan Info & Make Payments” button.
3. Click on the “Cosigner Release Application” button and refer to the “Months Active Repayment” column in the chart.

VSAC will also mail letters to both the primary borrower and the cosigner to notify them once the 48 months of active repayment have been met.

How long does it take to find out if I was approved for cosigner release?

Your application will be reviewed within 10 business days. VSAC will send you notification via mail to let you know if your Cosigner Release Application was approved or not.

I’m a cosigner, can I still make payments if I am released from the loan?

Yes, however you will not be able to make payments online through your MyVSAC account. If you want to make payments online through MyVSAC, the borrower will need to set you up as an Authorized Payer. Once set up as an Authorized Payer, you will need to login using the Authorized Payer Login. 

Click here to learn more about your VSAC loan payment options. 

I’m a cosigner, how and when does my credit report get updated if I am released from the loan?

If you are released as a cosigner, VSAC will notify the credit bureaus that your joint obligation on the loan has been terminated. Once VSAC has released you from the loan, please allow at least 30 days for the update to be reflected on your credit bureau reports.

Will my cosigner(s) receive notification of the outcome of my application?

Yes, your cosigner will be notified of the outcome of your application.