What are my rights as a co-borrower if the other borrower has defaulted?
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What are my rights as a co-borrower if the other borrower has defaulted?
I am a co-signer on a student loan with an ex-boyfriend and the account is currently delinquent because he did not pay. I have a document that he signed stating he would pay me if I had to make any payments. How do I pursue getting my money back? Also, the loan people stated I could get off the loan if i make 4 years of payments but also told me that they will not let a good co-borrower go. Is this true?
Asked on January 17, 2012 under Bankruptcy Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
1) You could sue your ex-boyfriend for the money he owes you. You would sue him both on the document whereby he agreed to repay you for any payments you had to make, and also on the loan document itself, since a co-signor has rights against a signor who does not pay.
2) Once you are a co-signor or co-borrower, you are legally obligated to pay. The lender does not legally need to "let you go" until the loan is paid in full. That said, the lender could certainly agree to allow you out of the loan and your obliations earlier, if you meet its terms. If you come to any agreement with them, make sure you get it in writing.
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