Mississippi Consumer Help Blog
Did you cosign for a student loan for your child or spouse? Co-signers and the student borrowers both owe the full amount of the loan. The primary borrower might pay the loan now, but if they stop paying, those debt collectors will be coming after the the co-signer for the loan. ***It’s important to keep in mind that the student borrower could file a Chapter 13 and protect you as the co-signer should they get into a situation where they cannot make their payments or, if necessary, you could file a Chapter 13 to protect yourself.*** But back to our discussion…
Co-signers can be released from student loans. It’s tricky, but in many cases there is a way out for you. The facts depend on whether it is a federal loan or a private loan and the terms of the loan.
For instance, if the primary borrower for a federal student loan dies, then the loan can be discharged and the co-signer is released. It works the same way if the primary borrower becomes permanently disabled.