What is my level of responsibility as a co-signor for a student loan?
Question Details:
Primary has defaulted on 1st payment. I believe this default is deliberate. Bank sent me a bill with penalty. Per an earlier document Primary sent me, due date was in 2 years. How's it possible to change due date without my knowledge? Bank rep told me primary is not answering calls. Is that sufficient effort from the bank’s side? Don't they try to see if he is working & garnish from his wages and/or assets before coming after me? If I start minimum payments will bank occasionally check on primary's ability to pay in future? Do they have to (by law)? What recourse do I have?
Collections and Debt Law Answers
Your liability is full, complete and equal to that of the primary signer. That means they can go after you as if you were the only person on the loan. In fact, if you have money and the primary does not, they may not even bother going after him and may just go after you.
If you start making payments, the bank will leave you alone, but they will not look for the primary. So long as the payments are coming in, they don't care where they are coming from.
It's impossible to comment on the acceleration of the due date without looking at the actual loan documents. Most likely, the 2 year abayance was due to some kind of deferment that the primary isn't eligible for anymore.
Your recourses are minimal. You signed paperwork saying that you'd pay the loan if the primary didn't. He didn't and now you're being held to your responsibility. The bank has every right to go after you. Sadly, even filing bankruptcy can't get rid of most student loans.
Related Collections and Debt Questions
Didn't find your answer? Ask.
Top Ranking Attorneys
- Kevin Bessant434 Answers|Points 5950Gold Contributor
- Kenneth Berger36 Answers|Points 1780Bronze Contributor
- Madan Ahluwalia104 Answers|Points 1700Silver Contributor
- Harun Kazmi60 Answers|Points 840Bronze Contributor
- Barry J. Simon18 Answers|Points 640Bronze Contributor
- Hong Shen528 Answers|Points 600Platinum Contributor
- Hong Shen528 Answers|Points 26400Platinum Contributor
- Kevin Bessant434 Answers|Points 21680Gold Contributor
- Steven Fromm113 Answers|Points 5430Silver Contributor
- Madan Ahluwalia104 Answers|Points 5170Silver Contributor
- Kelly Broadbent93 Answers|Points 4600Silver Contributor
- Glenn M. Lyon, Esq.93 Answers|Points 4530Silver Contributor
Are you a lawyer?Want to be featured here? Sign up for a free profile and get started today! Click Here