Cosigner Release

How to release a cosigner from your private student loan.

Remember back when you first took out your SunTrust private student loan? You were just graduating from high school – or building up your credit – and needed the help of a cosigner to apply for the loan. So your mom, dad, grandparent or someone else was kind enough to cosign the loan for you. But by now you have been paying on your private student loan for several years. You’ve got this. No need to keep your folks legally liable for the loan any longer. You want to remove, or release, your cosigner from your loan.

With SunTrust, you have the benefit of being able to release your cosigner if you meet certain requirements. Cosigner release is available for all of SunTrust private student loans:

  • Custom Choice Loan®
  • Graduate Business Loan
  • Private Student Loan Consolidation
  • Union Federal® Private Student Loan
  • AAA Advantage Loan
  • Academic Answer Loan
  • TERI Loan

The cosigner release process.

  • Make either 36 or 48 monthly on-time payments1 (or an equivalent lump sum), as set forth in your Credit Agreement/Promissory Note.
  • Call American Education Services (AES) to discuss eligibility requirements to see if you are eligible to apply to have the cosigner released.
  • If eligible, you will be sent a Cosigner Release Application with a list of all requested documentation.
  • Once the application is received, the application and documentation will be reviewed to ensure the student borrower meets established credit standards in order for the cosigner to be released from the loan.
  • The applicant will be notified of if the application for cosigner release has been approved or not.
  • Tip: To be approved for cosigner release, the student borrower must meet the credit criteria to take over the loan responsibility on their own.
Frequently Asked Questions

FAQs: Cosigner Release

If I’ve made all of the required on-time payments and believe I’m eligible to have my cosigner released, what happens next?

You (the student borrower, not the cosigner) should call American Education Services (AES) at 800.233.0557 to confirm you’re eligible to apply to have your cosigner released. After it is determined the eligibility requirements have been met, a cosigner release application will be mailed to you. 

Is the cosigner release application available on SunTrust's website?

No. To get an application, you must first contact the loan servicer, AES, to confirm that the eligibility requirements have been met. If you meet the requirements, a cosigner release application will be mailed to you. To discuss your cosigner release eligibility, please call AES at 800.233.0557.

How is the decision made to release a cosigner from a SunTrust private student loan?

To qualify to have a cosigner released from one or more the SunTrust private student loans, a student borrower must meet certain credit standards. This includes, but is not limited to:

  • A satisfactory credit history
  • No significant debt in relation to the student borrower's income
  • No prior defaults on a federal or private student loan

Is a cosigner's income, debt and credit history reviewed in the cosigner release process?

No, the cosigner's income, debt and credit history are not reviewed, but the student borrower's income, debt and credit history are evaluated.

How long will it take to reach a decision on the cosigner release application?

Once a completed cosigner release application and acceptable income verification documents are received, a decision is generally made within 30 calendar days.

How will a student borrower and cosigner be notified of the decision?

A letter outlining the decision will be sent. The student borrower is notified upon approval or denial of the cosigner release request. Additionally, the cosigner is notified if the cosigner release application is approved.

Can one cosigner release application be completed for all of SunTrust private student loan programs?

One application can be submitted to cover a combination of the following SunTrust private student loans: Custom Choice, Graduate Business, Private Consolidation, Union Federal and AAA Advantage. One application can be submitted to cover a combination of Academic Answer and TERI loans. If you are unsure what type of loans you have, please login to your AES account or contact AES via phone at 800.233.0557

Can the cosigner be released if the student borrower dies or becomes permanently disabled?

Yes, if appropriate documentation is received by AES to document the student borrower's death or permanent disability, the cosigner will no longer be required to repay the loan.

If the cosigner is released from liability, will there be any changes made to the credit bureau report for the borrower or cosigner?

There will be no changes made to the borrower's credit bureau report upon the release of a cosigner (the loan will continue being reported to all the major credit bureaus on an ongoing basis). Regarding the cosigner, there will be changes to the credit report — the historical reporting for the loan trade line will remain in place, however the loan will not show any balances owed by the cosigner since the cosigner will have been released from the loan.

Apply for a new SunTrust private student loan and you may be able to transfer the balance of an existing loan.

 

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Important Information

Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. View and compare the available features of SunTrust private student loans.

Union Federal is a federally registered trademark of Cognition Financial Corporation used by SunTrust Bank under license. The Union Federal Private Student Loan is funded by SunTrust Bank and is not offered in connection with any other lender or the federal government. Cognition Financial Corporation is not an affiliate of SunTrust Bank.

Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue these programs without notice. These loan programs are subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.

1

A cosigner may be released from the loan upon request to the servicer, provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria, and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when you make the most recent payment). As an example, if you have made 30 months of consecutive on-time payments, and then, based on the monthly payment amount in effect on the due date of your 31st consecutive monthly payment, you pay a lump sum equal to 6 months of payments, you will have satisfied the payment condition. Cosigner release may not be available if a loan is in forbearance.

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