What are a co-signer’s rights regarding a student loan?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are a co-signer’s rights regarding a student loan?

I co-signed for a private student loan (through Sallie Mae) for my daughter-in-law. My son is now going through a divorce. I would like to be removed as co-signer but I know that is not an option. Do I have other options such as wage garnishment? She is also receiving a grant from the hospital where she works to help pay off her student loan and I can prove that she has not used that money several times to pay her loan. Also, how likely is it that she could get another loan with a different co-signer to pay off Sallie Mae?

Asked on October 5, 2011 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The problem that you face is essentially the same problem that many co-signers of a loan face. Meaning, once one co-signs on a loan, he or she is obligated as an additional obligor of it until the loan is either paid in full or refinanced. Whether your daughter-in-law is able to refinance the loan that you co-signed for remains to be seen if she has yet to make any attempts to do so.

With respect to the person that you co-signed the loan for, the law holds that there is an implied agreement that the person receiving the benefit of the loan that one co-signed for is obligated to repay any monies the co-obligor ends up paying for the benefit that the laon was for. In your case your daughter-in-law is obligated to you for any cash outlays you might end up having to make concerning her loan that you co-signed for.

Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption