The Best Gift for Mother's Day (Hint: It Involves Your Student Loans)

04/22/2015 02:37 pm ET | Updated Apr 22, 2015

Here’s a mothers day gift idea that could be worth tens of thousands to your mom that may actually save you money as well. If you graduated college or university with student loans and your parents as cosigners, the best gift you can give your mom for Mother’s Day is to have her removed from your student loans. The average graduate has student debt of $29,400 and graduates of law, medical, and dental programs have average debts at graduation well over $100,000. Removing your mother from such a large potential liability will surely show how much you love her.

Removing cosigners was one of the unexpected, yet completely logical reasons, we have seen many borrowers explore student loan refinancing options with Credible. Olivia Hua, a 2013 graduate told us: “I never thought about my student loans very much, but considering I was able to attend college because of my cosigner, the least I can do is find ways to make it safer for them.”

How can you get your cosigner removed from your student loans?

By refinancing your student loans or in some cases, contacting your original lender about cosigner release. We see many graduates with solid jobs and credit scores able to refinance their student loans without a cosigner. This means that the borrower is able to pay off his or her existing student loan with a new loan (that is usually at a lower rate) and often does not require a cosigner.

Why is this possible?

It is possible because as a graduate with a steady income and good credit, a borrower is a much stronger candidate for a loan. Often lenders have enough confidence to give these graduates a loan without requiring a cosigner. We see this frequently as 80% of borrowers who refinance using Credible do so without a cosigner.

Who can refinance without a cosigner?

Anyone can apply to refinance their student loans without a cosigner. But, the candidates we’ve seen that are most likely to get offers that result in savings without having a cosigner generally have credit scores of 700 or better and debt to income ratios (the ratio of your monthly debt expenses to your monthly income) of 1:3 or lower. Of course, you can always elect to refinance your student loans with a cosigner, and many lenders have cosigner release options (usually after a few years of on time payments).

If you have a cosigner, you are not alone. Over 90 percent of private student loan borrowers have cosigners. However, you could be one of the most thoughtful ones by getting your cosigner, or mother relief. It’s an option worth considering for Mother’s Day right around the corner!

Visit Credible to learn more and see if you can reduce your interest rate and take out a new loan on your own financial credit!

States With Highest Average Student Debt - TICAS - Class Of 2012