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  1. #1
    Join Date
    Mar 2013
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    2

    Default Student Loan Cosigner Removal or Transfer

    My question involves collection proceedings in the State of: california

    I cosigned for several of my fiance's student loans from Chase bank. We have seperated, and he has only repaid for 12 months (of the 15 year loans). According to Chase, he must repay for a total of five years before the cosigner can be removed. He tried to consolidate the loans with Wells Fargo Bank (who he has a relationship with already), and have his uncle be the new cosigner for that loan (so I can be removed). The uncle has excellent credit, and has been a cosigner for my fiance on other student loans (that he has been repaying). Wells Fargo turned down the loan. They stated that they were many factors, but were vague with any specific answers asked. I believe that his credit score (707), and high credit card balances (he has carried for over a year) may be to blame. Wells Fargo said the he could reapply in a few months. His score, cc balances, increased income, and income to debt ratio will not improve significantly by then (or within the next year). He also tried to have Chase bank transfer the cosigner from me to his uncle without the consolidation. The told him they don't do that. (His uncle would be consider a better cosigner).

    How can I be removed as a cosigner before the 4 years he has left to pay? Can the cosigner be transferred? Chase will not allow him to carry the loans himself yet. I fear that a default is in the future (on purpose or not). How can I protect myself?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Student Loan Cosigner Removal or Transfer

    The lender's website should include the circumstances under which the cosigner can be relieved of further obligation. If that's not yet possible, the borrower can contact the lender about the possibility of substituting a different, qualified cosigner.

  3. #3
    Join Date
    Mar 2013
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    2

    Default Re: Student Loan Cosigner Removal or Transfer

    The lender states that the primary borrower must repay (in good standing) for 5 years before the cosigner can be removed. It has only been 1 year.

    The borrower has contacted the lender about substituting a different, qualified cosigner. The lender said they do not do that.

    Four more years of being the cosigner

    What other exit options can I explore?

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Student Loan Cosigner Removal or Transfer

    Quote Quoting sarah2774
    View Post
    The lender states that the primary borrower must repay (in good standing) for 5 years before the cosigner can be removed. It has only been 1 year.

    The borrower has contacted the lender about substituting a different, qualified cosigner. The lender said they do not do that.

    Four more years of being the cosigner

    What other exit options can I explore?
    Only one.

    Get the borrower to refinance with some other lender in his own name or with a different co-signer.

    If he can't qualify for a new loan anywhere else then you are stuck for another four years.

    And I have to tell you that it will still be the option of the lender to let you off the hook even then. The lender could easily say no again and there wouldn't be anything you could do about it.

    You've probably already figured out what an incredibly bad idea it was to co-sign in the first place.

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