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.
- Can you refinance without a cosigner?
- How do you refinance without cosigner help?
- Pros, cons of refinancing without a cosigner
- Best student loan refinance lenders
- How to choose the best no-cosigner loan
- Who is eligible for student loan refinancing?
- Alternatives to refinancing without a cosigner
Can you refinance a student loan without a cosigner?
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.
How do you refinance student loans without a cosigner?
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.
- Consistently pay your credit-based bills on time. Your payment history accounts for 35% of your FICO Score. So, it’s important to stay on top of your monthly payments. Consider using autopay for your payments so you don’t have to worry about forgetting.
- Keep your balances low. Your credit utilization percentage — the amount of available credit you’re using — makes up 30% of your FICO Score. Your credit may be positively affected by keeping your credit balances as low as possible.
- Dispute credit report errors. Get free copies of your credit reports from the three major credit bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com. Review your reports for fraudulent or erroneous information and dispute any such instances with the appropriate bureau.
- Boost your income. You’re less likely to need a cosigner if you can show proof of sufficient income. If you need to earn more, consider the following strategies: Ask for overtime at work, request a wage increase, look for a higher-paying job, or start a side gig.
Can you refinance a federal student loan without a cosigner?
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.
Refinancing vs. consolidation
With federal loans, the terms refinancing and consolidation are often used interchangeably. But there is an important difference between the two.
- Refinancing combines your private and/or federal loans into a new private loan with a private lender. You may receive lower rates, but you lose out on government protections since your federal loan is no longer managed by the federal government.
- Consolidation combines only your federal loans into a new federal loan. You can’t decrease your interest rate via consolidation — your new rate is actually an average of your previous rates, rounded up to the nearest one-eighth of 1% — but you can get lower monthly payments by extending your loan term or opting for an income-driven repayment plan.
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.
Pros and cons of refinancing student loans without a cosigner
Should you refinance student loans without a cosigner? Consider the benefits and downsides of going solo before making your decision.
Pros
- Your student loans do not limit a cosigner’s finances
- No potential for relationship problems with a cosigner
- No one is responsible for your debt but you
Cons
- More difficult to qualify for private student loan refinancing without a cosigner
- Interest rates likely to be higher without a cosigner
- Risk being denied refinancing, potentially impacting your ability to refinance your higher education debt
Best student loan refinance lenders
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.
INvestEd
- Name of non-cosigned loan: INvestEd Refi Loan. You must have established credit history and meet their annual income requirements.
- Minimum income requirements: Earn at least $36,000 per year
- Minimum credit score: 670
- Loan terms: 5, 10, 15, 20 years
- Additional requirements to qualify for a loan without a cosigner: Must be a United States citizen of the United States or a permanent resident and spend less than 40% to 50% of your income on your credit-based bills
MEFA
- Name of non-cosigned loan: MEFA Refi. Cosigner release is also not available for this lender.
- Minimum income requirement: $24,000
- Minimum credit score: 670
- Loan terms: 7, 10, or 15 years
- Additional requirements to qualify for a loan without a cosigner: Must be a U.S. citizen or permanent resident enrolled at least half-time at an eligible nonprofit school
Other student loan refinance lenders to consider
The following two lenders are not Credible partners, but they may also be worth considering.
SoFi
- Name of non-cosigned loan: Various student loan refinance options
- Minimum income requirement: Does not disclose, but income must be satisfactory to cover your debt
- Minimum credit score: Does not disclose
- Loan terms: 5, 7, 10, 15, and 20 years
- Additional requirements to qualify for a loan without a cosigner: Refinancing eligibility requirements include:
- Must be “age of majority in your state”
- Must be U.S. citizen, permanent resident, or non-permanent resident alien
- Must be employed, have an employment offer, or have another income source
- Must have an associate’s degree or higher from a Title IV institution.
- Must be refinancing educational debt
Discover Student Loans
- Name of non-cosigned loan: Various student loan refinance options
- Minimum income requirement: Does not disclose but states you must have “verifiable income sufficient to support your debts and show a positive repayment history”
- Minimum credit score: Does not disclose
- Loan terms: 10 and 20 years
- Additional requirements to qualify for a loan without a cosigner: Must be age 18 or higher and a U.S. citizen or permanent resident with an address in the U.S. You must be able to pass a credit check and show a positive payment history.
Methodology
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.
How to choose the best refinance student loan without a cosigner
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. |
Who is eligible for student loan refinancing that doesn’t require cosigners?
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:
- U.S. citizen, permanent resident, or eligible non-permanent resident alien
- Valid Social Security number
- Stable income
- Good credit score
- Received in a qualifying degree
| Remember: Cosigners are not required for federal student loans. |
Alternatives to refinancing student loans without a cosigner
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:
- Increase your payment amount. You don’t need to refinance to pay off your debt faster. By boosting your monthly payment amount, you can repay your debt faster and pay less interest over the life of the loan.
- Pursue federal loan benefits. If you’re considering refinancing to lower your monthly payment, you may qualify for the same benefit with an income-driven repayment option.
- Reach out to your lender. Explain your situation to your lender to see what options may be available. For example, some private lenders offer forbearance for borrowers facing financial hardship.
- Consult a student loan counselor. If managing your student debt is challenging, a nonprofit financial counseling agency can provide assistance or point you in the direction of debt relief programs.