A 5-step checklist for refinancing with a cosigner

By Sasha Bulatskaya | Published on October 21, 2025

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So, you’re thinking about refinancing¹ with a cosigner, but you’re wondering whether it’s the right financial move. Refinancing could change your financial outlook, but the decision to do it becomes harder when it’s not just your credit that’s on the line. That’s why we’ve put together this simple checklist to help you make the right choice.

Step 1: Ask yourself, “What’s my goal?”

Ask yourself what you hope to achieve. Do you want to lower your monthly payments or lower your interest rate?² Do you want to improve your credit score? Do you want to pay off your loans faster or plan to use your savings to chip away at other debt?

Knowing your main goal will help you find the right refinancing lender.

Step 2: Understand how it works

Refinancing with a cosigner means both of you will be legally responsible for paying back the debt. A cosigner could help you get approved and get more competitive rates, saving you a lot of money in the long run. But if you can’t repay your loan, they’ll be responsible for payments, and if you miss payments, both your credit scores will go down.

Here’s how it works at Earnest:

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*Images for illustrative purposes only.*

1. You’ll enter basic info like your name, address, where you went to school, and social security number to confirm your identity. There’s no hard credit pull at this time.

2. You’ll see your interest rate estimate and move forward with your application. At this stage, you can invite a cosigner or continue to apply on your own.

3. Your cosigner can accept the invite and either move to the application or complete a rate check. If your cosigner does a rate check you’ll see new rate estimates.

4. From there you’ll continue the application and both you and the cosigner will go through a hard credit pull.

5. Once the application is approved, you can customize your loan by choosing your rate, payment, and term.

When everything is final, we’ll send money to your lender(s) to pay off your original loan(s), and you’ll be an official Earnest client. Read our refinancing guide for a more in-depth look at how refinancing with a cosigner works.

Step 3: Consider the pros and cons

Take time to weigh the pros and cons.

Pros

• You could get a better interest rate
• Higher chances of approval
• Potential savings over the life of the loan

Cons

• Shared responsibility for the debt
• Risk of strained relationships if you can’t repay
• Potential impact on cosigner’s credit

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Source: Earnest survey of student loan refinancing trends in 2024

Step 4: Determine if you need a cosigner

You may not need a cosigner to refinance your student loans if you have excellent credit, a steady income and meet our eligibility requirements.

Is it better to refinance my student loans with a cosigner?

A cosigner could significantly improve your chances of getting approved if you have a limited track record with credit or a high debt-to-income ratio.

Who can be a cosigner?

At Earnest, anyone who wants to help you conquer your student loan debt can be a cosigner as long as they meet the eligibility requirements.

Step 5: How to find a cosigner

Most people ask a parent to cosign, but everyone’s situation is different. You want to choose someone with a good financial track record who is willing to take on the responsibility. You should be comfortable talking about money with this person and have an open relationship.

Need to ask someone to be your cosigner? Here’s how to do it:

1. Schedule a time to talk in person (if you can).
2. Discuss about your financial goals and current situation.
3. Let them know how refinancing would help you and ask if they would be willing to cosign.
4. Show them a payment plan for your loan and when you plan to pay it off.
5. Be clear about cosigner responsibilities so they understand the risks.

Using this checklist can help you make an informed decision about refinancing your student loans with a cosigner. It’s not for everyone but most people who refinance use a cosigner according to the Earnest survey around refinancing trends. Take time to consider your goals and when you’re ready, find out if refinancing with Earnest is right for you in 2 minutes.

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About the Author

Sasha Bulatskaya

Sasha is the Senior Manager of Brand and Content at Earnest. She has been writing for ten years and has been focused on educational finance and financial aid for over three. Her passion for mission-driven companies brought her to Earnest in 2020, and she's been helping make student finance more accessible ever since. She strives to demystify personal finance and student loans to help borrowers make the best decisions for their financial situation.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.