I cosigned a Sallie Mae student loan in 2007 that stated the cosigner may be released if “24 consecutive on-time monthly payments of principal and interest during the first two years of the Repayment Period” have been paid. I made the mistake of having the original borrower make 12 interest-only payments during the first year and 12 principal and interest payments during the second year; thus, our cosigner release application was denied. Is there any other option outside of the one on the loan document for being released as the cosigner?

Although it is possible to negotiate with lenders for modifications to the originals terms, the lenders are not exactly known for their flexibility.  Because private loans are not regulated the same way federal loans are, they lack some of the borrower protections federal loans have.  Do read the terms of your promissory note carefully, as the lender must meet those obligations.