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| *Ostroff, Fair and Company>>>Credit |
Removing Cosinger from Loan? |
I have a $4000 student loan and am a sophomore in college. My sister cosigned and wants me to pay it off quickly. Now, Sallie Mae will remove the cosigners name if i make 24 payments on time. What my question is, if i pay a lump sum that will ad up to those 24 payments, will they remove her?? I hate to be the bearer of 'not so nice news' - but - if the lender won't copmply with your request fo dropping your sister as the cosigner, then you have 2 options: 1: pay the loan off as agreed until the lender drops your sister's status 2: work out an arrangement with your sister to pay it for you, with you paying your sister. Your sister's cosigning becomes adecision she needs to come to grips with. As long as you are faithful with repayment, she has nothing to worry. A student loan is considered a good form of lending credit, as opposed to credit cards. She should have not signed on if she was concerned. For her to ask you to repay it fast is somewhat impolite. She can pay it down as well fi she really wants the designation removed. First ask your lender, you can also apply for a new loan in just your name with same lender or possibly a different lender. Hope this helps Since it's the same thing, I would think so but you'd best contact them to be sure It isn't the same, example your payments may be $50.00 monthly, so your wanting to pay $1200.00. Sallie Mae wants to make sure your credit is worthy enough for the additional $ 2800.00 you will owe. Sounds as if the student loan is rather new, if they are requesting a time period to prove credit worthiness. Not stating, they will, but my perception of what is the scenario from my experience in lending. The chances of them allowing you to make a lump sum and remove your co-signer is slim at best. As the previous answer stated, they want to see a responsible credit history for 24 months to show your worthiness to have the debt placed in your name alone. Your best option is going to be to refinance the student loan with another company, however you may have a hard time finding a company to finance your student loan with if you have a relatively new credit history or no credit at all. The whole idea of a cosigner is that if you default the loan, they will go after her. I don't think you should trust them to remove the cosigner. I don't think they will. That's why they offer you a 24months deal. If 24-payments is equal to $4000 then what's the point of removing her name. The account will be closed anyway because you already paid it off. If you pay late, then it would effect her, but if you make 24 payments on time then it wouldn't matter whether her name is on the account or not. |
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