Disability, Student Loans And Cosigner's Rights
I was granted perminate and total disability last year. I have loans with Sallie Mae, and i had my doctor fill out the proper forms to discharge my federal loans. (They still have not processed that!) I also have a private loan that I have a cosigner on. Currently they have repayment set at about 60% of my total income. I have been underpaying on my loans, but I have been sending them what I can afford each month. They have been harrasing my cosigner, who can not afford to pay my loans because he has his own personal issues to deal with, nor do I feel he should have to pay my loans off.
What are my options? If I file a bankrupcy will my cosigner sill be obligated to pay. Is there any way I can get him off the loan? My credit is already really bad so I don't really care what they put on my report, but I don't want my cosigner to have his good credit destroyed because I'm disabled and unable to meet their repayment terms. Other than dying, I don't know how to get out of this mess! :wallbang:
Thanks for any advice. I'm in PA if that helps.
Re: Disability, Student Loans And Cosigner's Rights
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What are my options? If I file a bankrupcy will my cosigner sill be obligated to pay.
Yes, you filing will not relieve the co-signor from the debt.
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Is there any way I can get him off the loan?
It would be up to the lender, but considering you could not get the loan without a co-signor, why would they want to release him from it?
This is the risks that a co-signor takes when they agree to be one.
Why You Shouldn't Be a Co-Signor on a Loan
Re: Disability, Student Loans And Cosigner's Rights
Yep - the co-signer on the loan is just as responsible for the loan as you are.