Co-signer Release Benefit

Some private education loans serviced by AES offer a co-signer release benefit during the principal and interest repayment period. This benefit would allow for the release of co-signers from their obligation to repay the loans.

To qualify for the co-signer release benefit:

  1. The correct number and type of consecutive, on-time, and full monthly installment payments must be remitted.
  2. The remaining borrower may be required to meet specific underwriting standards, including income and FICO score.
  3. An application must be submitted. Contact us for an application.

Payment Requirements

To release a co-signer from their obligation, you first must have made a required number and type of consecutive monthly principal and interest payments on-time during the installment period (as defined as the Principal and Interest Repayment Period in your credit agreement). Payments made before entering the installment period or required interest-only payments during the initial in-school period do not qualify. Specific payment requirements for each loan program are outlined in the tables above.

Note: If you have multiple loans, each loan may have different requirements to release your co-signer from their obligation, such as the required number of payments received and how they are counted.

Additional Underwriting Criteria

To release a co-signer from their obligation, you as the remaining borrower, must meet your lender’s specific underwriting and credit criteria, which may include minimum income and FICO® Score requirements.

Note: Your lender may require you to meet additional criteria to qualify for a co-signer release. Your lender reserves the right to change the underwriting criteria in any way from time to time.

Program-Specific Requirements

The tables above detail the number and type of payments required and any other lender specific requirements. If your loan program and lender are not listed above, your loan does not have a co-signer release benefit.

Note: The information provided here is general. Refer to your credit agreement or contact us for details on the requirements specific to your loan or to request an application.