Rights cosigners typically have

  • Access to account information and payment history (if the lender permits).
  • The ability to request payoff figures and account statements.
  • The option to contact the lender about repayment options, including cosigner-release policies.

(Access and specific rights depend on the lender and the loan contract; some servicers provide cosigners direct account access while others do not.)

Core responsibilities of cosigners

  • Equal legal liability for payments: if the borrower misses payments, the cosigner must pay.
  • Credit impact: late payments and defaults report on the cosigner’s credit report and can lower credit scores (Consumer Financial Protection Bureau).
  • Collections and legal exposure: the cosigner can face collection actions, wage garnishment, and litigation if the debt remains unpaid.

What to confirm before cosigning

  • Read the full promissory note and disclosure statements. Confirm whether the loan is private (nonfederal), interest rates, repayment schedule, and whether the lender offers a cosigner release.
  • Ask the lender how they report payments to credit bureaus and whether the cosigner will receive account access.
  • Consider whether the primary borrower will enroll in autopay and whether that reduces the rate.

Monitoring and practical steps after cosigning

  • Request to be added as an authorized user on the lender’s account portal when possible.
  • Sign up for autopay and payment alerts, or ask the borrower to do so, to reduce missed payments.
  • Check your credit reports periodically (AnnualCreditReport.com) and dispute any inaccurate information promptly.

Cosigner release and refinancing options

Many private lenders offer cosigner-release provisions, but qualifications vary—typically a history of on-time payments and a credit check of the primary borrower. See our guide on requirements and timing for details: Private Student Loan Cosigner Release: Requirements and Timing.

Refinancing the loan (either by the borrower alone once credit is established, or by the cosigner and borrower together) is another common way to remove a cosigner; read more in our guide on strategies and release options: Private Student Loan Cosigner Strategies and Release Options.

If the primary borrower misses payments

  • The lender can demand payment from the cosigner immediately.
  • Late payments will appear on both credit reports and can reduce credit scores, increase interest costs, and affect future borrowing.
  • Cosigners who pay can pursue reimbursement from the borrower and may have legal remedies under state contract law (in my practice I’ve seen successful breach-of-contract suits, but litigation can be costly and slow).

Common misconceptions

  • Myth: Cosigners have no rights. Reality: Cosigners can request loan histories, ask about repayment plans, and may qualify for release under lender rules.
  • Myth: Cosigning only impacts the borrower. Reality: Cosigners’ credit and debt-to-income ratios are affected immediately upon loan origination.

Professional tips (from practice)

  1. Put the repayment agreement in writing between you and the borrower (who pays what and when).
  2. Consider a signed promissory side-agreement obligating the borrower to reimburse you for any payments you make.
  3. Require the borrower to enroll in autopay and to share statements monthly.
  4. Reevaluate options (refinance, cosigner release) after 12–24 months of on-time payments.

Quick FAQ

Q: Can a cosigner be removed?
A: Sometimes. Lenders often allow release after a qualifying period of on-time payments and a credit check of the borrower—the rules are lender-specific (see our release guide above).

Q: Does federal student loan forgiveness affect private loans or cosigners?
A: No. Federal programs like income-driven plans or Public Service Loan Forgiveness apply to federal loans, not private loans. Private loans remain enforceable against cosigners.

Disclaimer

This article is educational and not personalized financial or legal advice. Rules vary by lender and state; consult a qualified attorney or financial professional before cosigning or taking legal action.

Sources and further reading

  • Consumer Financial Protection Bureau (cfpb.gov) — information on student loans and cosigners.
  • Federal Student Aid, U.S. Dept. of Education (studentaid.gov) — federal vs. private loan distinctions.

For related topics and deeper guidance, see our articles on cosigner release and strategies linked above.