How to refinance student loans without a cosigner​

Many borrowers will need cosigners when getting their original student loans.  

However, after graduation, borrowers are in a place to take care of their student loans by themselves. This is where refinancing your student loans could be helpful. Removing a cosigner through a student loan refinance can come with several benefits to the borrower. 

Start the process of removing a cosigner with a student loan refinance. 

Can you refinance student loans without a cosigner

Yes, you can refinance your student loans without a cosigner. Before refinancing your student loans without a cosigner, it is smart to understand what that means and what you need to qualify. 

Understanding solo refinancing eligibility

If you plan to refinance your student loans by yourself, you will need to meet a lender’s eligibility. This can include having a good credit score, stable income, qualifying existing student loans and being at least 18 years old. 

Even if you are not able to refinance on your own, many companies offer a co-signer release. Refinancing your loan to a co-signer allows your co-signer to be taken off your loan after a set number of payments. 

Why lenders prefer cosigners for private loan refinancing

Lenders prefer cosigners for a private loan refinancing as there is a lower risk of a default on payments and higher chance of on-time repayments. Cosigners are required to make payments if the primary borrower cannot make payments.  

Key benefits of refinancing on your own

Borrowers looking to refinance their student loans on their own may get a lower interest rate on their new loan if their credit and income have improved since their original loan. A lower interest rate on your new loan could reduce your monthly payments and potentially help you save over the life of your loan. 

Qualification requirements for refinancing without a cosigner

​Here are some qualifications lenders may require for refinancing a student loan without a cosigner. 

• A credit score of 650 or higher
• Stable income and employment
• A debt-to-income (DTI) ratio of 40% or lower
• Consistent payment history on your student loans

Exact qualifications for a student loan refinance could vary from lender to lender.  

If you have federal student loans, refinancing them into private student loans will remove any federal benefits offered. 

Step-by-step process to refinance student loans on your own

Those looking to start the process of refinancing their student loans on their own can follow these steps. 

Check your credit score and credit report for errors

Your credit score plays a big factor in refinancing your student loans. If you are refinancing your student loans on your own, make sure your credit score meets the minimum requirements from lenders. If your score is lower than you thought, check your credit report for errors or ways you can increase your score. 

Shopping around and getting prequalified with multiple lenders

Getting prequalified for a student loan refinance can show you your options without affecting your credit score.  

A prequalification can let you compare what your new loan would look like with different lenders. When looking over your prequalifications, make sure to check what your interest rates, loan terms and origination fees may be at each lender. Knowing this can help you determine which option is best for you and your budget. 

Submitting required financial documentation and completing the application

When you have chosen a lender for your student loan refinance, prepare to submit your documents and complete your application. For a refinance, prepare to show your existing student loans, employment and income verification, and graduation certificate.  

What to do if your application is denied

If your student loan refinance application is denied, you will want to find out why your application was denied and take steps to get your application approved. 

Some reasons student loan refinance applications are denied include not meeting a lender’s requirements: credit score is too low, DTI ratio is too high or income isn’t sufficient to cover payments.  

When you know why your application is denied, you can fix problems and be prepared for the next time you apply for a student loan refinance. 

_{*The soft credit pull pre-approval option is available on conventional, government, and jumbo loans for purchase or refinance. This pre approval is an early assessment of borrowers’ qualifying information. A hard credit pull is required prior to a loan being submitted to underwriting and will impact borrower's credit score. Borrowers already under contract will default to a hard credit pull when they apply for loan approval. Applicants are subject to credit and underwriting approval. Not all borrowers will be approved. Restrictions apply.} 

_{Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.}