Is it legal for Sallie Mae to pursue payment from the co-borrower when the primary borrower is already making agreed-upon payments?

Our daughter is the primary borrower and my husband co-signer…Sallie Mae debits her bank account monthly on an income-based payment schedule according to an agreement made between SM and daughter. Now husband is being threatened with legal action unless her pays, and the loans have been placed on his credit report.

Asked on July 20, 2012 under Bankruptcy Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not the lender can require the co-obligor under the terms of the contract to make payments for the loan on a monthly basis where the loan is supposedly current depends upon what the loan agreement states. As such, you need to carefully read the document that the co-obligor signed in that such agreement sets forth the obligations owed to the lender and vice versa.

From a practical point of view, if the loan is current, I do not see why the co-obligor need to make additional payments to the lender.

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