0
Does a cosigner of a sallie Mae private law loan have to pay if the borrower dies?
Wiki User
∙ 11y ago
Yes. There is no bankruptcy on these loans. The cosigner has agreed to pay the loan despite all contigencies. SallieMae can garnish wages plus penality with no court order. They can also lien on the cosigners home and property with ease. They can and will lien on the cosigner's estate in case of death.
Unless they don't. The only option is to appeal to the office of the consumer advocate and to be absolutely open regarding personal issues regarding the circumstances that make your situation unbearable. Along with this is the need for a detailed accounting of your finances with as much documentation as you can provide even if it's embarrassing.
Because the consumer advocate has discretion regarding how best to help you in your situation. It's possible that in very bad circumstances of various kinds, you may obtain a reduction in the loan, even to zero. You'll still owe about a third of the money in a lump sum in taxes for the next year, but it's a third. And a true blessing given the bad decision to cosign a loan with no contingency for death.
SallieMae on longer offers these loans. They now have a much easier to negotiate Smart LOAN that accounts for forgiveness in the event of student death. Also, if we'd thought ahead, we could have been released as cosigner within about twelve months of the borrower's graduation--I'm pretty sure.
I wish you well and hope this reachs you when you need it. I recieved grace from SalleMae and compassionate discretionary consideration of my debt.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
If the primary borrower dies is the cosigner now resonsible for the loan?
Yes, unless the loan is settled by the estate.
If the cosigner of a home loan dies will the bank go after his estate for repayment?
My belief is that as long as the mortgage is paid on time by the borrower, there would be no reason to go after the cosigner estate.
Who pays loan on joint account when only one signed for the loan then dies?
I'm not sure if I get the question. Are you talking about having a cosigner orlike in a PLUS loan? If a borrower dies, the loan can be discharged.
Does a cosigner have to replay a federal student loan if the student dies?
Federal student loans do not currently have cosigners. Parents who take out federal PLUS loans for their kids often think they are a cosigner, when they are actually the sole borrower. All federal student loans are discharged if the student dies.
What happens if you are a borrower and the co-signer dies?
If the co-signer dies the surviving borrower is responsible for paying the loan.
If you are a cosigner on a vehicle loan and your name is listed on the title as OR then what rights do you have when the primary buyer defaults on payments?
You have the right to pay the loan. When a cosigner enters into a loan agreement he is promising to assume responsibility for the debt should the borrower ever default on the loan. This means simply that if the borrower stops making payments the cosigner will have to take over the payments. You may even be responsible for the full payment of the loan in the event that the borrower dies or is disabled. The cosigner, or in many times, the co-borrower is equally responsible for the debt. The debt will be reflected on the co-signors credit report and may negatively impact the person's credit should the debt become delinquent. If the primary borrower cannot pay the debt, the lender will pursue the co-signor just as equally as the primary borrower. In some cases the lender may only go after the cosigner. If you cosign on a auto loan and the borrower does not make his payments, you will be responsible for making the payments even though you do not have posession of the vehicle. The borrower will be driving around in a vehicle that you are paying for, and it can be a nightmare to extract yourself from this situation. You will not only be responsible for any arrears of the loan; you will also be responsible for any late fees, additional interest, and collection fees.
Is a cosigner on a credit card responsible after the primary dies?
Yes.
What happens if you co-signed a car loan and the primary borrower dies?
You are still respnsible for paying should the borrower die.
Does a cosigner have to pay the rent when tenant dies suddendly?
I'm pretty sure the cosigner doesn't have to pay it. If the tenant dies suddenly, I wouldn't think his/her family would be obligated to pay the rent, because I'm sure they would move everything out when the tenant dies.
What happens if the loan borrower dies then the guarantor passes away shortly after?
borrower dies then it is not suitable that amount recovered from gaunter because of person taking guaranty of live person nor death
Does cosigner have to pay back loan if original signer dies?
Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.Yes. That's the reason the lender required a co-signer. They are responsible for paying the loan if the primary borrower does not.
Is a co signer responsible for parent plus loan if main borrower dies?
Yes.
