How canI be removed as a co-signer on a student loan for my sister?

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How canI be removed as a co-signer on a student loan for my sister?

She is constantly late paying it and Ican’t remember ever signing it (I remember signing a much lower loan than the one I’m being presented with, for $3k, but this is for $47,745) Her debt collectors are calling and threatening me with the entire balance being due. I don’t believe her when she tells me she has been paying and have no faith she is making honest efforts. She has been telling me for 5 years that she was going to have me removed as co-signer yet I keep getting debt collectors calling about her loan.

Asked on January 3, 2012 under Bankruptcy Law, Washington

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately for you, as a co-signer on your sister's loan, my experience is that most lenders steadfastly refuse to remove a co-signer from a loan. In fact the lender is under no obligation to do so unless the loan is refinanced or paid off in full.

From what you have written, you are in a serious situation. If your sister defaults on her loan or loans (which appears to be the case), the lenders can legally seek payment from you for the full balance of the loan that you co-signed on. I suggest that you have a face to face meeting with your sister about the calls from debt collectors that you have been receiving concerning the loan or loans that you co-signed on.


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