SpendSLR Archives

Sep

2025

Discretionary Income and Student Loans: Why It Matters

By Sulaiman Abdur-Rahman | Fresh Out of School, Student Loans, student_loan, Terminology | No Comments

Knowing what your discretionary income is (and how discretionary income is calculated for student loans) can help you make decisions about how to best repay your federal loans. That’s because the federal government typically uses discretionary income, which is any adjusted gross income (AGI) you have above a certain percentage of the federal poverty guideline, to determine your monthly payments for income-driven repayment (IDR) plans.

However, because of recent legislation, the options for income-driven plans — and the way monthly payments will be calculated — will be changing. For example, the new Repayment Assistance Plan (RAP) starting in July 2026 won’t use discretionary income to calculate payments. It instead looks at AGI, which could result in higher payments for some borrowers.

Here, we’ll discuss different IDR plans and the ins and outs of discretionary income, as well as upcoming changes to student loan repayment options, so you can figure out a repayment strategy that works for you and your budget.

Table of Contents

What Is Discretionary Income?
How Does Discretionary Income Affect Student Loan Payments?
How Else Can Borrowers Lower Their Student Loan Payment?

Key Points

• Discretionary income, calculated by subtracting a protected amount from adjusted gross income, is important for determining monthly student loan payments under current federal repayment plans.

• The IBR plan defines discretionary income as income above 150% of the federal poverty guideline, potentially allowing for $0 payments for borrowers under specific income thresholds.

• Income-driven repayment plans can lower monthly payments but may extend loan terms significantly, resulting in more interest paid over time compared to standard repayment options.

• Borrowers must recertify their income and family size annually, affecting their monthly payment amounts based on changes in financial circumstances.

• Refinancing student loans with private lenders can lower payments but forfeits access to federal benefits like income-driven repayment plans and potential loan forgiveness.

What Is Discretionary Income?

The Department of Education (Ed Dept) calculates discretionary income as your adjusted gross income (AGI) in excess of a protected amount defined by a federal IDR plan.

Discretionary income under the Income-Based Repayment (IBR) Plan, for example, is any AGI you have above 150% of the federal poverty guideline appropriate to your family size. If you don’t qualify for a $0 monthly payment on the IBR Plan, your monthly payment is set to 10% or 15% of your discretionary income, depending on when you borrowed your loans.

Discretionary income as defined by the Ed Dept is different from disposable income, which is the amount of money you have available to spend or save after your income taxes have been deducted.

How Is Discretionary Income Calculated?

This is how federal student loan servicers may currently calculate your discretionary income on an income-based student loan repayment plan:

• Discretionary income under IBR is generally calculated by subtracting 150% of the federal poverty guideline from your AGI.

• Discretionary income under the Income-Contingent Repayment (ICR) Plan is generally calculated by subtracting 100% of the federal poverty guideline from your AGI.

If you’re filing jointly or you have dependents, that will impact your discretionary income calculations. For married couples filing together, your combined AGI is used when calculating discretionary income. Under an income-driven plan, filing with a spouse can drive up your income-driven monthly payments because of your combined AGI.

If you file separately, your student loan payments will be based on your income alone. However, you may lose some tax benefits, so you’ll have to weigh the pros and cons of this approach to determine which makes more sense for your finances.

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What Income-Driven Repayment Plan Are You Eligible For?

There are now three federal IDR plans that have different eligibility criteria and terms. (There are two others that are no longer accepting new enrollments.) These income-driven repayment plans can reduce monthly payments for people with incomes below a certain threshold.

It should be noted that federal IDR plans don’t apply to private student loans. They’re only an option for federal student loans.

Income-Driven Repayment Plans for Federal Student Loans

The Ed Dept offers the following IDR options for eligible federal student loan borrowers:

• Income-Based Repayment (IBR) Plan

• Pay As You Earn (PAYE) Plan

• Income-Contingent Repayment (ICR) Plan

All current IDR plans generally use discretionary income to determine monthly payments. If there is a change in a borrower’s income or family size, their monthly payment could increase or decrease, depending on the change. Borrowers enrolled in an IDR plan are typically required to recertify their income and family size each year.

For the IBR and PAYE plans, eligibility is determined based on income and family size. As a general rule, to qualify, borrowers must not pay more under IBR or PAYE than they would under the 10-year Standard Repayment Plan. There’s no income requirement for the ICR plan.

Due to the recent legislation, borrowers who consolidated their Parent PLUS Loans into Direct Consolidation Loans are newly eligible for IBR if they enrolled in the ICR plan immediately.

Also because of the legislation, the PAYE and ICR plans will be eliminated in the coming years. For borrowers taking out their first loans on or after July 1, 2026, there will be only one income-driven plan: the Repayment Assistance Program. RAP will set borrowers’ payments at 1% to 10% of their AGI, rather than using discretionary income.

Pros and Cons of Income-Driven Repayment Plans

IDR plans come with trade-offs. While they can lower your monthly payment and help free up your cash flow now, they may extend the life of your loan. The standard student loan repayment plan is based on a 10-year repayment timeline. Current income-driven repayment plans can extend your payment timeline to up to 25 years. And the RAP plan to be introduced in 2026 extends the payment timeline to 30 years.

This means you’ll be paying off the loan longer and possibly paying more in interest over time. If you stay on the IBR plan, the government might forgive any remaining balance after 20 or 25 years of payments. On RAP, the amount may be forgiven after 30 years. But the amount that is forgiven on these plans may be taxed as income.

Navigating the changes to IDR plans can be complicated. PAYE and ICR are due to close by July 1, 2028, so you may have to switch to IBR or the new RAP plan in the next few years. And as noted above, for borrowers who take out loans after July 1, 2026, RAP will be the only income-driven option.

How to Apply for an IDR Plan

To apply for an IDR plan, you can go to StudentAid.gov and log into your account using your Federal Student Aid (FSA) ID. The online application is estimated to take no more than 10 minutes to complete. (If you prefer, you can download a paper application to fill out and then send it to your loan servicer.)

To fill out the application, you’ll need to supply your address, email address, and phone number, as well as information about your family size. You will also need to provide your most recent income tax return (a tool on the site can link your tax information to the application).

Once you complete the application you will see which IDR plans you qualify for. You can select one and then sign the form and submit it. Your loan servicer should send you an email or letter confirming receipt of the application. The servicer will notify you when your application has been processed.

How Does Discretionary Income Affect Student Loan Payments?

Income-driven repayment plans currently use your discretionary income to dictate the amount you’re required to repay each month. In the case of borrowers enrolled in the IBR Plan, payments are set at 10% of discretionary income for loans borrowed after July 1, 2014, and 15% for loans borrowed before that date. On the PAYE plan, payments are set at 10% of discretionary income. On ICR, payments are 20% of discretionary income.

Examples of Monthly Payment Calculations

To calculate your monthly payments on an IDR plan, you’ll need your adjusted gross income (plus your spouse’s if you file a joint return) and your family size, which includes the number of dependents you have, such as your children.

Next, find the federal poverty guideline for your family size and state, and multiply that number by 150%. Subtract this amount from your AGI to get your discretionary income. Your payment on IBR will be 10% of that amount.

Here’s an example:

Let’s say your AGI (plus your spouse’s) is $100,000.

Your family size is 3 (you, your spouse, and one child).

The federal poverty guideline for you is: $26,650.

Using that information, the calculation would look like this:

$26,650 x 1.50 (150%) = $39,975

$100,000 – $39,975 = $60,025

$60,025 x 0.10 (10%) = $600.25

Your payments on the IBR plan would be $600.25 per month.

To get an official payment amount, you can use the Federal Student Aid Loan Simulator to determine your payments.

Annual Recertification Requirements

IDR certification is typically required annually, and you’ll need to recertify your income and family size. This is mandatory even if there has been no change to your situation or income. If you fail to recertify, there may be negative consequences, such as higher monthly payments or even loss of eligibility for IBR.

You’ll be given a recertification deadline, and you’ll need to recertify by that date. As part of the process, you’ll include your family size as well as your most recent federal income tax return. You can recertify online.

If you gave the Ed Dept permission to access your federal tax information when you first applied for IDR, your yearly certification will be automatic. The Ed Dept will notify you about any change to your monthly payment amount.

How Else Can Borrowers Lower Their Student Loan Payment?

Besides IDR, there are other strategies borrowers can use to help lower their monthly student loan payments. These include:

Student Loan Refinancing

Borrowers may be able to reduce their student loan payments by refinancing student loans. With student loan refinancing, you take out a new loan with new terms from a private lender. The new loan is used to pay off your existing student loans.

Depending on your credit and financial profile, refinancing could result in a lower interest rate or a lower monthly payment depending on which terms you choose. Just be aware that you may pay more interest over the life of the loan if you refinance with an extended term.

Refinancing federal student loans with a private lender also forfeits your access to federal IDR plans, Public Service Loan Forgiveness, and Teacher Loan Forgiveness.

To find out how much you might be able to save with refinancing, try our student loan refi calculator.

Extended and Graduated Repayment Plans

Another option for current federal student loan borrowers is to consider the Extended Repayment Plan or the Graduated Repayment Plan to help lower their monthly payments.

To qualify for the Extended Repayment Plan, you must have more than $30,000 in outstanding Federal Direct Loans or Federal Family Education Loans (FFEL). Monthly payments on this plan are typically lower than payments of the standard 10-year repayment plan because borrowers have a longer period of time — up to 25 years — to pay them off. However, this means you’ll pay more in interest over the extended term.

Due to the recent legislation, the Extended Repayment Plan will be closed to new borrowers as of July 1, 2026. Current borrowers on the plan will continue to make payments on their extended term.

The Graduated Plan allows borrowers to pay off their loans over 10 years. Payments typically start out relatively low and increase gradually (usually every two years). The plan may be right for you if your income is low, but you expect it to rise.

The Graduated Repayment Plan is eligible to most current borrowers, however, the plan will be closed to new borrowers as of July 1, 2026. Borrowers currently on the plan can continue to make payments on the graduated timetable.

Applying for Deferment or Forbearance

You might also be able to qualify for a deferment or forbearance, allowing you to temporarily stop or reduce your federal student loan payments. Reasons you can currently apply for deferment include being in school, in the military, or unemployed. However, as part of the new domestic policy legislation, economic hardship and unemployment deferments will be eliminated for student loans made on or after July 1, 2027.

If you’re in deferment and you have certain federal loans, such as Direct Subsidized Loans, you typically won’t have to pay the interest that accrues during the deferment period.

You could apply for student loan forbearance if your federal student loan payments represent 20% or more of your gross monthly income, you’ve lost your job or seen your pay reduced, or you can’t pay because of medical bills, among other reasons. Note that interest accrues on your loans while they are in forbearance. As part of the new legislation, forbearance will be capped at nine months in any 24-month period beginning on July 1, 2027 for new borrowers.

The Takeaway

The government uses discretionary income to calculate your federal student loan monthly payments under a qualifying IDR plan. IBR and PAYE use a more generous formula to calculate discretionary income than ICR, and they offer lower monthly payments. Over the next few years, your IDR plan options will be whittled down to IBR and the new RAP plan, both of which use different income calculations.

If you’re not relying on income-driven repayment, you may want to consider the Graduated Repayment Plan or the Extended Repayment Plan to help lower your monthly payments, though those plans will be closing to new borrowers in the summer of 2026. Other options include deferment or forbearance or student loan refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How does discretionary income impact income-driven repayment plans?

Currently, income-driven repayment plans base your monthly payments on your discretionary income and family size. Typically, the higher your discretionary income, the higher your monthly student loan payments will be. For example, on the Income-Based Repayment (IBR) Plan, your discretionary income is the difference between your taxable income and 150% of the poverty guideline for your family size and state.

What percentage of discretionary income is used for student loans?

The percentage of discretionary income that’s used for student loan payments depends on the income-driven repayment plan a borrower is enrolled in. For instance, on the Income-Based Repayment (IBR) Plan, your discretionary income is the difference between your taxable income and 150% of the poverty guideline for your family size and state. On the Income Contingent Repayment (ICR) Plan, your discretionary income is the difference between your taxable income and 100% of the poverty guideline for your family size and state.

Can refinancing affect your discretionary income calculation?

Yes, but in an indirect way. Refinancing federal student loans makes you ineligible for income-driven repayment plans that base your payments on your discretionary income and family size. If you think you may want to apply for an IDR plan, refinancing is probably not right for you.

How do I find out my discretionary income for student loans?

To calculate your discretionary income for income-driven repayment plans, you’ll need your adjusted gross income (AGI) and your family size (you plus a spouse and any children, if applicable). Next, determine the federal poverty guideline for your family size and state (you can find this information on the Health and Human Services website) and multiply that number by 150% for the IBR plan or 100% for the ICR plan. Subtract the resulting amount from your AGI to get your discretionary income.

Is discretionary income the same as disposable income?

No, discretionary income and disposable income are not the same thing. Discretionary income as defined by the Department of Education under an income-driven repayment plan is any adjusted gross income you have above 150% or 100% (depending on the plan) of the federal poverty guideline appropriate to your family size. Disposable income, by comparison, is the amount of money you have available after income taxes have been deducted.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q325-025

Sep

2025

What Happens to Student Loans When You Drop Out?

By Maureen Shelly | Fresh Out of School, Student Loans, student_loan | No Comments

Table of Contents

Do I Have to Pay Back My Student Loans If I Drop Out of School?
What Happens if I Don’t Pay My Student Loans?
Ways to Pay Off Student Loans If You Didn’t Finish School
What to Do if You Can’t Afford Any Student Loan Payments
The Takeaway
FAQ

Dropping out of college is a significant decision that can have far-reaching implications, particularly when it comes to student loans. Many students find themselves in a challenging financial situation after leaving school, unsure of what happens to the loans they’ve taken on and how to manage them.

Here, we’ll walk you through the consequences of dropping out when you’ve already incurred debt, and show you ways to pay off outstanding student loans.

Key Points

• If you drop out of college, you still have to repay your student loans. Federal loans typically have a six-month grace period before payments start.

• Missing payments can lead to serious consequences, including credit damage, wage garnishment, and legal action.

• Income-driven repayment plans can lower monthly payments based on income, and refinancing may reduce interest rates but removes federal protections.

• Deferment or forbearance may temporarily pause payments, but interest may still accrue.

• Returning to school at least half-time can defer payments, and refinancing might help if you don’t need federal benefits.

Do I Have to Pay Back My Student Loans If I Drop Out of School?

Regulations dictate that if you leave college or drop below half-time enrollment, you have to start paying back your federal student loans. You may have a grace period (generally, six months) before your first payment is due. Even if payments aren’t due yet, interest may still accrue during the grace period, depending on the type of loans you have.

If you have private student loans, check with your lender to determine when you need to start paying back your loans.

If you’re currently still in school or left very recently before earning a degree, you may be able to request student loan exit counseling from your school, a service normally provided only to graduates. This can help you understand your options, including potential tuition reimbursement. Each school has a different refund policy.

What Happens if I Don’t Pay My Student Loans?

The consequences of late or “delinquent” payments vary by lender, but you can generally expect to be charged late fees each time you miss the due date. If a payment is late by 30 days or more, that information can be reported to the three credit bureaus — Experian®, Equifax®, and TransUnion® — which will negatively affect your credit score.

If you stop paying your student loans for 270 days (about nine months), your federal loans go from being delinquent to being in student loan default. When that happens, the balance is due in full, including accrued interest, collection agency fees, and any other fines, fees, and penalties. Student loans generally cannot be discharged during bankruptcy.

The government can go to great lengths to get their money back, including:

• Garnishing your paycheck, up to 15% of wages after deductions

• Withholding your tax refund

• Going after cosigners for the amount due

• Suing you in court for the outstanding amount, plus court fees and other expenses

Private student loans generally go into default after 90 days (and don’t qualify for the on-ramp protections). Private lenders may also take you to a court or use collection agencies to recoup student loan debt. Defaulting can wreck your credit, making it challenging for you to obtain a mortgage loan, car loan, credit card, homeowners insurance, or new utilities.

Ways to Pay Off Student Loans If You Didn’t Finish School

Once you leave school, it’s a good idea to begin paying off your loans as quickly as you can, paying more than the minimum payment whenever possible. Before paying ahead, though, check to see if any of your student loans have a prepayment penalty. If so, paying early can cost you money.

Should you refinance your student loans? What about income-driven repayment programs? Below are the best options to help ease financial hardship and avoid default.

Income-Driven Repayment Plans

Income-driven repayment (IDR) plans reduce your monthly federal student loan payments based on your discretionary income and family size. They currently extend the length of the repayment period up to 25 years. After that, any remaining loan balance is forgiven, though the canceled amount may be subject to income taxes.

Enrolling in an income-driven repayment plan won’t have a negative impact on your credit score or history. However, income-driven plans aren’t always the lowest monthly payment option. And even when monthly payments are lower, you will pay more interest over time (longer loan terms mean more interest payments).

Borrowers must recertify their income each year. If they fail to do so, they’ll be returned to the standard 10-year amortizing plan.

Keep in mind that under Trump’s new One Big Beautiful Bill, three of the four income-driven repayment plans will end on July 1, 2028. Borrowers must switch to the one remaining plan, the Income-Based Repayment (IBR) plan, or the new Repayment Assistance Plan (RAP).

The Repayment Assistance Plan (RAP) is a new income-driven repayment plan that’s based on borrowers’ adjusted gross income (AGI), with a $50 monthly reduction per dependent. The RAP plan provides cancellation after 30 years of payments, unlike current income-driven repayment plans that provide cancellation after 10-25 years.

Going Half-Time

Students who are enrolled at least half-time in an eligible college or career program may qualify for an in-school deferment. This type of deferment is generally automatic. If you find the automatic in-school deferment doesn’t kick in, you can file an in-school deferment request form.

Refinancing Student Loans

While you’re still able to make your student loan payments and your credit is still good, consider student loan refinancing. You can combine multiple loans into one payment, ideally with a better interest rate and terms.

As your financial situation improves, you can make additional payments (as long as you refinance with a company that doesn’t charge a prepayment penalty) or refinance again with a new term that will accelerate payoff and allow you to pay less interest over the lifetime of the loan.
It’s important to note that by refin

It’s important to note that by refinancing your federal student loans, you will not be able to access federal programs like income-driven repayment plans, Public Service Loan Forgiveness (PSLF), and government deferment or forbearance. If you don’t need any of those benefits, a lower student loan interest rate gained by refinancing could be worthwhile.

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What to Do if You Can’t Afford Any Student Loan Payments

If you find yourself in a situation where you cannot afford to make any student loan payments, it’s important to take immediate action to avoid defaulting on your loans. The first step is to reach out to your loan servicer to discuss your options. They can provide you with information about deferment and forbearance, which are temporary solutions that allow you to pause or reduce your payments.

Although deferment or forbearance can give you short-term financial relief, these plans will increase the amount of interest you’ll pay on the loans overall, and can extend the length of the loans.

Student Loan Deferment

Student loan deferment allows eligible borrowers to temporarily reduce loan payments or pause them for up to three years, depending on the type of loan. In most cases, borrowers seeking a deferment will need to provide their loan servicer with documentation that supports their eligibility.

Deferments are typically broken down into qualifying categories:

• Unemployment. Borrowers receiving unemployment benefits or who are actively seeking and unable to find full-time work may qualify. This deferment is good for up to three years. However, under Trump’s One Big Beautiful Bill, borrowers will no longer be eligible for deferments based on unemployment for loans made after July 1, 2027.

• Economic Hardship. Individuals receiving merit-tested benefits like welfare, who work full-time but earn less than 150% of the poverty guidelines for their state of residence and family size, or who are serving in the Peace Corps may qualify. This deferment may be awarded for up to three years. Again, under Trump’s One Big Beautiful Bill, borrowers will no longer be eligible for deferments based on economic hardship for loans made after July 1, 2027.

• Military Service. Members of the U.S. military who are serving active duty may qualify. After a period of active duty service, there is a grace period of 13 months, during which borrowers may also qualify for federal student loan deferment.

• Cancer Treatment. Borrowers who are undergoing treatment for cancer may qualify. There is a grace period of six months following the end of treatment.

Student Loan Forbearance

There are two types of federal student loan forbearance: general and mandatory. Private lenders sometimes offer relief when you’re dealing with financial hardship, but they aren’t required to, so check your loan terms.

General forbearance is sometimes called discretionary forbearance. That means the servicer decides whether or not to grant your request. People can apply for general forbearance if they’re experiencing financial problems, medical expenses, or employment changes.

General forbearance is only available for certain student loan programs, and is granted for up to 12 months at a time. After the 12 months are up, you are able to reapply if you’re still experiencing difficulty.

Note that starting July 1, 2027, new student borrowers will have a nine-month cap in a 24-month period for student loan forbearance. Borrowers also will no longer be eligible for unemployment or economic hardship deferments and forbearances.

Mandatory forbearance means your servicer is required to grant it under certain circumstances. The Federal Student Aid website has a full list of criteria for mandatory forbearance. Reasons include:

• Medical residency or dental internship

• Participating in AmeriCorps

• Teachers who qualify for teacher student loan forgiveness

• National Guard duty

• Monthly student loan payments that are 20% or more of your gross income

If you’re pursuing federal student loan forgiveness, any period of forbearance generally does not count toward your forgiveness requirements.

The Takeaway

Should you unexpectedly need to drop out of school, you’ll still be responsible for paying back your student loans. If you’re able to work, you may want to enroll in an income-driven repayment plan — though keep in mind that these programs don’t always offer the lowest monthly payment possible.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What happens to your student loans if you drop out of college?

If you drop out of college, your student loans will still need to be repaid. The grace period for federal loans typically lasts six months after you drop out, during which you are not required to make payments. Private loans may have different terms, so it’s important to check with your lender.

Can you still receive financial aid if you drop out of school?

Once you drop out, you will no longer be eligible to receive new financial aid. However, you may still have access to any remaining funds from the current academic year. It’s important to contact your school’s financial aid office to understand your specific situation and any potential refund of unused funds.

What is the grace period for federal student loans, and how does it work?

The grace period for federal student loans is usually six months after you drop out of school. During this time, you are not required to make payments on your loans, but interest may continue to accrue on certain types of loans, such as unsubsidized loans. After the grace period, you will need to start making regular payments.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOSLR-Q325-071

Sep

2025

How to Get Student Loans Out of Default

By Pam O’Brien | Fresh Out of School, Student Loans, student_loan | No Comments

Table of Contents

What is Considered Student Loan Default?
Tips for How to Get Student Loans Out of Default
The Takeaway
FAQ

As student loan debt increases, it’s likely that so will the number of borrowers defaulting on their student loans. Student debt in the U.S. has reached crisis levels at $1.814 trillion, with the average borrower owing $39,075 in federal student loan debt.

About one in 10 borrowers have defaulted at some point, and 6.24% of student loan debt is in default at any given time.

Failure to make payments on your student loans can result in serious consequences. If you’re struggling with your student loans and are in danger of defaulting, there are options. The sooner you take action to remedy your student loan troubles, the better.

If your loans are already in default, there are steps you can take to recover. Read on to learn how to get student loans out of default.

Key Points

• Federal loans enter default after 270 days of nonpayment, leading to serious consequences like wage garnishment and credit damage.

• Loan rehabilitation lets you restore good standing by making nine on-time payments and can remove the default from your credit report.

• Loan consolidation combines multiple loans into one and may offer access to income-driven repayment plans to lower monthly payments.

• Refinancing with a private lender may reduce interest or payments, but it removes access to federal benefits and requires good credit.

• Act early to avoid default — use deferment, forbearance, or income-driven plans to stay current and protect your financial health.

What is Considered Student Loan Default?

At its most basic, student loan default happens when you have failed to make payments on your student loans.

If you have a federal student loan, the U.S. Department of Education considers your loan delinquent the day after you miss your first payment. After 90 days, your failure to pay will be reported to all three credit bureaus, which may negatively impact your credit score.

If your loan is delinquent, there are steps you can take to prevent the loan from going into default. If you’ve failed to make a payment or two, consider applying for student loan deferment or forbearance, especially if you’re facing a temporary financial hardship.

Keep in mind, for loans made after July 1, 2027, borrowers will no longer be eligible for deferments based on unemployment or economic hardship.

If you’re having long-term difficulty paying your monthly student loan payments, an option is to see if you can change your payment terms to reduce your monthly bill. This process will extend the life of the loan (lowering your monthly loan payments usually involves lengthening your loan term) and you’ll most likely pay more in interest over the life of the loan. However, making payments on time can help you avoid defaulting and the consequences that come with it.

After 270 days of nonpayment, the loan is considered in default, triggering a series of consequences for the borrower.

Consequences of Student Loan Default

The default and history of missed payments can stay on your credit report for years to come. You also become ineligible for federal payment assistance such as forbearance, deferment, and student loan forgiveness. Any costs associated with collecting the loan are added to your balance due, and the government has the ability to garnish your wages or seize your tax refund.

Tips for How to Get Student Loans Out of Default

If you’re wondering how to get student loans out of default, there are options. These include: loan rehabilitation, consolidation, refinancing, or paying off the loan in full—including any additional interest accrued on student loans. Oftentimes, borrowers in default are unable to repay their loans in full, so the following alternatives may be more practical.

1. Loan Rehabilitation

You may be able to remove a default from your credit report through student loan rehabilitation. Here’s roughly what the process looks like if you have federal loans in default:

First, you contact your lender’s customer service office to request a rehabilitation plan for your loan. Second, you want to be sure you can commit to the program since you can’t rehabilitate a loan a second time. However, starting on July 1, 2027, borrowers will be able to rehabilitate student loans twice (instead of once).

Third, you follow your lender’s plan. That means making nine payments on time, usually at a lower payment rate (your lender determines the monthly payment amount, usually equal to 15% of your annual discretionary income, divided by 12).

Once you’ve successfully made all payments on rehabilitated student loans, the default can be removed from your credit report, but sometimes it takes about 90 days. Note that missed payments prior to the default on your loan will remain on your credit report, and your loan holder may still take involuntary payments (like wage garnishment) until your loan is no longer in default and/or you begin making rehabilitation payments.

Once you have rehabilitated student loans and you’ve again become a borrower in good standing with your lender, you now have the opportunity to get further relief through forbearance or deferment, especially if you’re still struggling.

2. Loan Consolidation

If you have federal student loans, you may be able to consolidate your student loans into one Direct Consolidation Loan. By consolidating, you pay off your existing loans and replace them with one new loan. The new rate is a weighted average of the interest rates on your old loans, rounded up to the nearest one-eighth of a percent.

If you qualify to consolidate your student loans, you have the ability to choose a different payment plan, including income-driven repayment plans. These plans lower your monthly payment to a percentage of your discretionary income. Most plans also extend the term out to 20 or 25 years, and cancel any remaining balance once the term is up. Keep in mind that extending your repayment term could mean paying more in interest over the life of the loan.

3. Refinancing Your Loans

If you have a solid personal financial picture (which includes things like your income and credit score), you may be able to refinance your loans with a private lender instead of consolidating them with the government. You may get a lower interest rate, which can allow you to trim the amount of interest you’ll pay over time. You could also extend your loan term to get a lower monthly payment. Keep in mind, though, that extending your term will make it so you pay more in interest over the life of the loan.

If you have a less-than-great credit score, you may need to find a cosigner for the loan. A reliable cosigner can help you qualify for refinancing. However, your cosigner would be equally responsible for the loan.

When you refinance a federal student loan with a private lender, you’ll no longer be eligible for federal protections, such as income-driven repayment plans or Public Service Loan Forgiveness.

Recommended: Student Loan Refinancing Guide

The Takeaway

Getting student loans out of default is a crucial step toward financial stability and can open doors to better loan management options, such as refinancing. By exploring methods like loan rehabilitation, consolidation, and maintaining consistent payments, you can regain control of your debt and improve your credit standing.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What is the first step to getting student loans out of default?

The first step is to contact your loan servicer to understand your options and the specific requirements for getting out of default. They can provide detailed information on the processes available, such as loan rehabilitation or consolidation.

How does loan rehabilitation work?

Loan rehabilitation involves making a series of on-time payments, typically nine out of 10 consecutive months, to bring your defaulted loans back into good standing. Once completed, the default status is removed, and you regain eligibility for federal benefits like deferment and forbearance.

What are the benefits of refinancing student loans after getting them out of default?

Refinancing student loans after getting them out of default can lead to lower interest rates and more manageable monthly payments. It can also simplify your finances by combining multiple loans into one, making it easier to manage and pay off your debt.

SOSLR-Q325-078

Sep

2025

Can You Convert Private Student Loans to Federal Student Loans?

By Jennifer Calonia | Going to College, Student Loans, student_loan | Comments Off

Since private student loans are held by a private bank or lender, you can’t refinance private student loans to federal loans.

The reverse, however, is possible. You can refinance private and federal student loans into a new private student loan with a new, ideally lower, interest rate. When you refinance federal student loans, it’s important to understand you lose access to federal benefits and protections.

Here’s what to know about why you can’t convert private student loans to federal loans, how you can combine both into a new refinanced loan, and how to make the choice that’s right for you.

Table of Contents

Transferring Private Student Loans to Federal Loans
How to Combine Private and Federal Student Loans
Benefits of Federal Student Loans
How Private and Federal Student Loans Differ
FAQ

Key Points

• Private student loans cannot be converted into federal student loans, but federal loans can be refinanced into private loans.

• Refinancing private and federal loans into a new private loan may lower interest rates but eliminates federal protections like income-driven repayment and loan forgiveness.

• Federal consolidation allows borrowers to combine multiple federal loans into one without losing federal benefits, but it does not apply to private loans.

• Federal student loans offer benefits such as debt forgiveness programs, income-driven repayment options, and guaranteed deferment or forbearance in times of financial hardship.

• Private loans typically require a credit check, may have variable interest rates, and offer fewer repayment protections compared to federal loans.

Transferring Private Student Loans to Federal Loans

It isn’t possible to refinance private student loans to federal loans since private loans can only be held and owned by private financial institutions. Your federal student loans, on the other hand, can be converted into a private loan.

Although private and federal loans serve the same purpose — to finance your education — they differ in significant ways. One of the biggest distinctions is that private loans are not eligible for federal programs and benefits.

Recommended: Types of Federal Student Loans

How to Combine Private and Federal Student Loans

While there’s no way you can refinance private student loans to federal loans, the reverse is possible: You can convert a federal loan to a private loan to combine your federal and private student debt into a new private loan.

Refinancing

You can combine federal and private student debt by refinancing your federal student loans into a private loan. Refinancing is offered by a private lender and requires a credit check. This repayment option lets you refinance existing federal loans, private student loans, or a combination of both into a new private student loan.

The new refinancing lender pays your original loan(s) in full and creates one refinanced student loan for the total amount it paid on your behalf. Over time, you’ll repay your new lender your principal refinance amount, plus interest charges.

Overall, a student loan refinance can help you combine multiple loans into a single loan at a new rate and potentially better terms. It also results in one monthly payment. Depending on your credit score and other qualifying factors, it might help you access a lower interest rate.

Be aware that since a refinanced federal loan is no longer a part of the federal student loan system, you’re giving up federal benefits and protections if you refinance a federal student loan.

Consolidating

Federal student loans can be combined, or consolidated, through the federal Direct Loan program. With a Direct Consolidation Loan, your federal loans are combined into a single new loan with a new interest rate that’s an average of all of your existing federal loan rates, rounded up to the nearest eighth of a percent.

Some reasons to consolidate your federal loans include simplifying your payments and qualifying for federal student loan programs such as income-driven repayment plans or Public Service Loan Forgiveness (if your existing federal loans weren’t eligible for these programs to begin with).

Private loans are not eligible for federal loan consolidation. As mentioned earlier, you can only combine federal and private student loans together when you refinance your loans into a new private loan.

Benefits of Federal Student Loans

Although converting your federal student loans into a private loan might have its advantages, there are serious caveats to consider before moving forward. Ultimately, refinancing federal loans through a private lender means you’ll lose access to valuable federal benefits and protections.

Debt Forgiveness

A major benefit that federal student loans offer is access to student debt forgiveness and cancellation. Depending on your personal situation, you might be able to have a large portion of your federal student debt forgiven.

Some programs offered for federal loans include:

• Public Service Loan Forgiveness (PSLF). Borrowers who work full-time for a government entity or not-for-profit organization might be eligible for loan forgiveness. While working for a qualified employer, you must enroll in an income-driven repayment plan and make 120 qualifying payments toward your federal loans. Afterward, your remaining federal loan balance is forgiven.

• Teacher Loan Forgiveness (TLF). Under TLF, educators who work full-time at an approved low-income school or service agency can earn up to $17,500 in forgiveness. You must agree to a five-year service contract and meet other requirements.

• Perkins Loan Cancellation. If you have eligible Perkins Loans, you might be eligible for loan cancellation or discharge, depending on your employment service or unique circumstances.

Income-Driven Repayment

Federal student loan borrowers who are struggling to afford their standard 10-year monthly payments can explore one of the Department of Education’s income-driven repayment (IDR) plans.

Each repayment plan calculates your monthly payment based on a percentage of your discretionary income and your family size. Some borrowers under an IDR plan may qualify for a $0 per month payment.

However, under Trump’s One Big Beautiful Bill, three of the four income-driven repayment plans will end on July 1, 2028. Borrowers must switch to the one remaining plan, the Income-Based Repayment (IBR) plan, or the new Repayment Assistance Plan (RAP).

Guaranteed Postponement

You might suddenly be hit with financial hardship, like being temporarily unemployed or experiencing an accident that inhibits your ability to make payments. In this stressful situation, federal student loans provide the option to request payment deferment or forbearance.

These federal protections pause your federal student loan payment requirement without penalty. During this time, interest still accrues and is added to your principal balance.

You’re ultimately responsible for repaying it back, as well as any interest that capitalizes when payments resume. However, this guaranteed postponement offers financial relief during difficult times.

Some private loans may offer deferment or forbearance options during times of financial hardship, but the options vary by lender.

For new loans taken out after July 1, 2027, economic hardship and unemployment deferment will no longer be available for federal student loans.

How Private and Federal Student Loans Differ

To decide whether refinancing your federal loans into a private loan makes sense for you, it’s important to know how private student loans vs. federal student loans differ.

Federal Student Loans	Private Student Loans
Provided by the U.S. government.	Provided by a private financial institution.
Most programs don’t require a credit check.	Good credit, or a cosigner, is generally required.
Fixed interest rates.	Fixed or variable rates offered.
Payments are deferred until you leave school or drop below half-time.	Payments might be due while you’re enrolled in school, but this varies by lender.
Income-driven repayment options available.	Repayment plans vary by lender.
Access to loan forgiveness or cancellation.	Generally doesn’t offer loan forgiveness.
Offers interest subsidies for borrowers with financial need.	Loan interest is typically not subsidized.
Offers extended deferment or forbearance.	Rules on postponing payments vary by lender.

Recommended: Private vs. Federal Student Loans

The Takeaway

Refinancing private student loans to federal loans is unfortunately not possible. You can, however, refinance federal student loans to a private student loan. Before refinancing a federal student loan, though, decide whether you might need to leverage government benefits, like income-driven repayment or loan forgiveness programs. You’ll lose these useful benefits by refinancing all of your federal loans.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Is it possible to change private student loans to federal?

No, there is no way to change private student loans to federal loans. However, you can refinance your private and federal loans together, ideally to qualify for a lower rate or better loan terms. If you go this route, you will be changing your federal student loan(s) into a private loan.

Is it possible to change federal student loans to private?

Yes, you can change a federal student loan to a private student loan through refinancing. A private refinance lender will pay off your original federal loan, and you’ll have to make payments to your new private lender for the principal balance, plus interest. Changing your federal student loans to a private loan, however, will mean you lose access to federal repayment plans, forgiveness programs, and other protections.

How can you combine private and federal student loans?

You can combine private student loans and federal student loans with a refinance student loan. Student loan refinancing is provided by a private lender, so any federal loans you refinance will become private and you’ll lose the government benefits and protections you had under the federal loan system.

Photo credit: iStock/YayaErnst

SOSLR-Q325-059

Sep

2025

A female student sitting at a desk, writing in a notebook as she studies for the GMAT.

Applying for a Student Loan Cosigner Release

By Kayla McCormack | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If you borrow a student loan with a cosigner, you may want to officially remove them from the loan by applying for a cosigner release. The specific requirements for this can vary by lender but may include things like a minimum number of on-time monthly payments and a review of your credit history.

Borrowers will likely be required to file a formal application with their lender in order to release their cosigner from a student loan. Continue reading for a high-level rundown of what the process of cosigner release can look like and what other options might exist if a cosigner release is not available.

Table of Contents

What Is a Cosigner?
What Is a Cosigner Release, and How Do You Qualify?
How to Apply for Cosigner Release
Why Get a Cosigner Release?
What Are the Limitations of Cosigner Releases?
What Are the Alternatives to a Cosigner Release?
FAQ

Key Points

• A cosigner release allows the cosigner to be officially removed from a student loan if certain conditions are met.

• Eligibility requirements may include a minimum number of on-time payments, proof of stable income, and a good credit history.

• Borrowers must submit a formal request to the lender, often requiring documentation like tax returns or pay stubs.

• Cosigners of student loans can benefit by building their credit profile, limiting financial liability, and avoiding risks such as automatic default in the event of their death.

• An alternative to a cosigner release is refinancing the loan in the borrower’s name only, which can remove the cosigner while potentially lowering interest rates.

What Is a Cosigner?

The financial aid process typically begins with families filling out the Free Application for Federal Student Aid (FAFSA®) to see how much aid they’ll receive. Direct Subsidized and Unsubsidized federal loans don’t need a cosigner, but they don’t always cover the whole cost of your education. If you’re unable to get a student loan yourself, a cosigner — often a parent, relative, or close family friend — may be able to help secure funding.

Cosigners are just as responsible as the primary borrower to repay the loan. If the primary borrower doesn’t make a payment on time, the cosigner is legally required to make the payment. Late or missed payments can affect the credit scores of both the primary borrower and the cosigner. If a debt goes into default and the lender hires a collection agency, that agency can pursue the cosigner to collect the debt.

Cosigners may choose to help their child or family member take out a loan when they are in college, but once the student graduates and gets a job, they may decide it’s time for them to take full responsibility for the loan.

What Is a Cosigner Release, and How Do You Qualify?

A cosigner release is the process of removing a cosigner from a loan. Depending on the loan’s terms, the cosigner may be removed from the loan with a cosigner release after the student has graduated and met certain requirements as outlined by the lender. Here’s a list of the typical requirements that a primary borrower must have in order to remove a cosigner from their loan:

Minimum Full Monthly Payments

Typically, the primary borrower will have to show that they’ve made one to two years’ worth of full monthly payments, depending on the lender. Full payments include principal and interest rate payments, and they must be made on time.

Satisfactory Credit

The lender will generally check the primary borrower’s credit to make sure they can qualify for the loan on their own and meet minimum credit requirements. For example, they’ll be looking to make sure that the borrower doesn’t have any loans in default and that they have a good consumer credit report.

Employment

Lenders may ask for proof of employment and determine whether a primary borrower is meeting minimum income requirements. Borrowers may be asked to prove income with recent paystubs, W-2s, or the borrower’s most recent tax return.

Depending on your lender, there may be other criteria you have to meet.

How to Apply for Cosigner Release

Before a lender will release a cosigner, primary borrowers must submit an application. Here is a step-by-step guide to applying for a cosigner release.

1. Check with Your Lender

First things first, if you’re unsure if the loan you have qualifies for a cosigner release, check directly with your lender. Generally, lenders will have certain requirements that borrowers are required to meet before they can apply for a cosigner release. These may include things like making a minimum number of on-time monthly payments, establishing a strong credit history, and securing employment. Again, each lender is able to set their own criteria.

2. File an Application

Once you’re confident you can meet the requirements, you will likely have to file a formal application with your lender to have the cosigner removed from your loan. Depending on the lender, you may be able to submit the application online or by mailing in a printed form. Read the application requirements thoroughly because some lenders may require supporting documentation, like a W-2 or recent pay stubs.

Once you have submitted an application with the information your lender requires, the lender might then issue a cosigner release.

Why Get a Cosigner Release?

A cosigner may want to be released from a student loan for a number of reasons, not the least of which is the flexibility they may gain from having that portion of their credit freed up.

First, their debt-to-income ratio will likely improve, which may make it easier to apply for new credit or get a new loan at a favorable interest rate. If a cosigner is looking to buy a car or get a mortgage, for example — or even cosign another loan — they may be able to do so with more favorable rates.

Cosigners with other children bound for college may want to be released from one child’s loan so they can turn their attention to funding their next child’s education.

Another reason to consider releasing a cosigner is that some private loans go into automatic default if the cosigner dies. Removing the cosigner protects the primary borrower from needing to worry that they may have to pay any remaining balance in full immediately if their cosigner dies.

Once the cosigner is released from the loan, they will no longer have to worry that their credit will be damaged if loan payments aren’t made on time, or that they may be responsible for payments should the primary borrower drop the ball.

What Are the Limitations of Cosigner Releases?

Not all loans offer a cosigner release; and even for those that do, it can be difficult to obtain. For that reason, when you are on the hunt for an initial loan, you should read the fine print to see if the loan offers a cosigner release option. That way, you’ll know the possibility is there.

What Are the Alternatives to a Cosigner Release?

If your application for a release is rejected, there are other ways you may be able to relieve your cosigner.

One alternative that might be worth considering is refinancing your student loan(s).

When you refinance student loans, your new lender pays off your old loan (or loans) in full, replacing it with a new one. If the primary borrower can qualify for a new loan on their own, they won’t need to include the cosigner on the new loan.

Keep in mind, though, that if you refinance your federal student loans into a private student loan, you’ll lose access to federal benefits and forgiveness options.

The Takeaway

Applying for a cosigner release may require that the primary borrower meet certain lender requirements like having a full-time job and making a minimum number of on-time monthly payments. If approved, the cosigner on the loan will be officially removed and the primary borrower will be the sole borrower. In the event that you aren’t approved for a cosigner release, you may be able to remove your cosigner by refinancing your loan.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What is a cosigner release, and why might you apply for one?

A cosigner release is a process that allows the primary borrower to remove the cosigner from a student loan. This can be beneficial if you want to take full responsibility for the loan, build your credit score, or reduce the financial burden on your cosigner.

What are the typical requirements for a cosigner release?

The requirements for a cosigner release can vary by lender, but common criteria include a strong credit score, a stable income, and a history of on-time payments. Some lenders may also require a certain number of consecutive on-time payments before considering a release.

How can you check if you are eligible for a cosigner release?

To check if you are eligible for a cosigner release, review the terms and conditions of your loan agreement or contact your lender directly. They can provide specific details about the eligibility criteria and the application process.

SOSLR-Q325-061

Discretionary Income and Student Loans: Why It Matters

What Is Discretionary Income?

How Is Discretionary Income Calculated?

Take control of your student loans. Ditch student loan debt for good.

What Income-Driven Repayment Plan Are You Eligible For?

Income-Driven Repayment Plans for Federal Student Loans

Pros and Cons of Income-Driven Repayment Plans

How to Apply for an IDR Plan

How Does Discretionary Income Affect Student Loan Payments?

Examples of Monthly Payment Calculations

Annual Recertification Requirements

How Else Can Borrowers Lower Their Student Loan Payment?

Student Loan Refinancing

Extended and Graduated Repayment Plans

Applying for Deferment or Forbearance

FAQ

How does discretionary income impact income-driven repayment plans?

What percentage of discretionary income is used for student loans?

Can refinancing affect your discretionary income calculation?

How do I find out my discretionary income for student loans?

Is discretionary income the same as disposable income?

What Happens to Student Loans When You Drop Out?

Do I Have to Pay Back My Student Loans If I Drop Out of School?

What Happens if I Don’t Pay My Student Loans?

Ways to Pay Off Student Loans If You Didn’t Finish School

Income-Driven Repayment Plans

Going Half-Time

Refinancing Student Loans

Serious savings. Save thousands of dollars thanks to flexible terms and low fixed or variable rates.

What to Do if You Can’t Afford Any Student Loan Payments

Student Loan Deferment

Student Loan Forbearance

The Takeaway

FAQ

What happens to your student loans if you drop out of college?

Can you still receive financial aid if you drop out of school?

What is the grace period for federal student loans, and how does it work?

How to Get Student Loans Out of Default

What is Considered Student Loan Default?

Consequences of Student Loan Default

Tips for How to Get Student Loans Out of Default

1. Loan Rehabilitation

2. Loan Consolidation

3. Refinancing Your Loans

The Takeaway

FAQ

What is the first step to getting student loans out of default?

How does loan rehabilitation work?

What are the benefits of refinancing student loans after getting them out of default?

Can You Convert Private Student Loans to Federal Student Loans?

Transferring Private Student Loans to Federal Loans

How to Combine Private and Federal Student Loans

Refinancing

Consolidating

Benefits of Federal Student Loans

Debt Forgiveness

Income-Driven Repayment

Guaranteed Postponement

How Private and Federal Student Loans Differ

The Takeaway

FAQ

Is it possible to change private student loans to federal?

Is it possible to change federal student loans to private?

How can you combine private and federal student loans?

Applying for a Student Loan Cosigner Release

What Is a Cosigner?

What Is a Cosigner Release, and How Do You Qualify?

Minimum Full Monthly Payments

Satisfactory Credit

Employment

How to Apply for Cosigner Release

1. Check with Your Lender

2. File an Application

Why Get a Cosigner Release?

What Are the Limitations of Cosigner Releases?

What Are the Alternatives to a Cosigner Release?

The Takeaway

FAQ

What is a cosigner release, and why might you apply for one?

What are the typical requirements for a cosigner release?

Take control of your student loans.
Ditch student loan debt for good.

Serious savings. Save thousands of dollars
thanks to flexible terms and low fixed or variable rates.

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