Co-signer Release Benefit

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

To qualify for the co-signer/co-borrower release:

  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/co-borrower 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 prior to entering the installment period or required interest-only payments during the initial in-school period do not qualify. Details regarding required payments for specific loan programs are provided in the tables above.

Note: If you have multiple loans, each loan may have different requirements to release your co-signer/co-borrower from their obligation. These different requirements may be related to the number of payments that must be received and how payments are counted.

Additional Underwriting Criteria

To release a co-signer/co-borrower 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 in order to qualify for a co-signer/co-borrower 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 as well as 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.