I have a friend who cosigned for another friend. She wants to be released from her cosign obligation without affecting her credit rating. What are her alternatives in order to do that?
There are two possible routes toward getting released from liability as a cosigner on a loan. The most straightforward route is to arrange for the loan to be paid off.
Assuming that the first alternative isn't something that can be done, the second possibility is to ask the lender to grant a release. This actually might be even less viable as a solution than paying off the loan. Lenders don't like to release cosigners unless the principal obligor on the loan is creditworthy on his or her own and discharging the cosigner won't increase the risk of non-payment.
It's also possible that the lender will discuss the request seriously if the loan balance can be significantly reduced, or any collateral pledged for the loan is implemented. In other words, your friend will need to convince the lender in order to obtain a release of her liability. She won't know whether the lender will even consider her request unless she asks.
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There are two possible routes toward getting released from liability as a cosigner on a 