I have about $25K in private student loan debt from Sallie Mae, I have been making payments since 2008, always on time. My mother is the co-signer, she is retiring soon and would like her name removed from being the co-signer or for me to pay it off….unfortunately I do not have the money to pay it off, thus would like to try to get her name removed from the co-signer position.
Are there any ways to go about getting my mother removed from being to co-signer of the loan? If so, how would you recommend I go about doing this…Thanks in advance for any advice to arm myself with before I approach Sallie Mae.
Technically, yes you can.
According to Sallie Mae a co-signer can be released. Here is what they say about it.
“To qualify for cosigner release, the borrower must have successfully completed school, made 12 consecutive on-time principal and interest payments for Smart Option Student Loan or Career Training Smart Option Student Loan (other Sallie Mae private loan products may have different minimum on-time principal and interest payment requirements, please contact us for details at 1-888-272-5543), meet age of majority requirements, and meet the underwriting requirements when the request for cosigner release is processed. The borrower’s account must remain current until the request for the cosigner release is processed. The borrower must be a U.S. citizen or permanent resident at the time the cosigner release is processed.”
A very important part to keep in mind is to make sure your Sallie Mae payments remain on time while your application is being considered. Falling behind will result in a big “NO.”
Now, all of that being said it is not unusual for me to hear from people who have struggled to jump through a bunch of hoops to try and get the co-signer released. If you’ve tried and have found yourself still not able to get this resolved then I would suggest you file a complaint with the Consumer Financial Protection Bureau (CFPB). You can do that here. The CFPB does look into every complaint so at least it can help your case get some extra attention.
Please post your responses and follow-up messages to me on this in the comments section below.