What can we do if my husband co-signed for private student loans for my daughter and she has defaulted?

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What can we do if my husband co-signed for private student loans for my daughter and she has defaulted?

She went to school for 2 years and then failed out. She has $50,000 in debt and is not being responsible for her student loan debt. Is there any way we can get our name off these loans? Sallie Mae is awful to deal with and my daughter is dragging her feet in doing anything to refinance or look for a loan that does not require a co-signer.

Asked on April 21, 2014 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

No, there is no way to remove your name off the loans unless Sallie Mae agreed to let you off--and they won't, since that would deprive them of a responsible party to pay off the loan. Furthermore, your daughter would also have to agree to let you off the loan, and it's unlikely she will, because that would leave solely responsible. The loan documents are a contract; as with any contract, they cannot be modified (such as to release you from your obligations) without the consent or agreement of *all* parties to the contract. You may have to pay the loan (to avoid collections action and damage to your credit), then sue your daughter to recover your losses.


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