Is the cosigner of a student loan responsible to repay the balance of the loan if the student dies?

Answer 1

The only persons' responsible for a loan are signers of the contract who accepted legal liability. If a signor dies, their estate may be liable for remaining debts. Whether or not this applies in your case would depend on whether there was a will and prevailing state law governing that will. For the best information, your questions would need to be directed to an attorney.

Answer 2

In the United States, if the student loan is Federal, then the answer is NO. The Dept of Education has a forgiveness provision for death of borrowers of Federally Guaranteed Student Loans. The loans would be forgiven and the estate would not be liable.

The loan is the responsibility of the Student, but if the student defaults on the loan it becomes the responsibility of the co-signer. If the co-signer dies before the loan is paid the student is now the only person responsible for the loan.

Most lending institutions that require a co-signer do so to ensure that the loan will be paid.

yupYes. The co-signer is basically the only signer, since their credit - good name - and debt / income ratio are being used. The other person is merely piggy backing on the co-signer in an effort to improve their own credit. Signing a document for any loan is a debt, so yes - the debt would still need to be paid by whatever means available by the estate.

Not likely, If the loan was in default and the cosigner had already begun paying on it, the estate MIGHT be held accountable if it were a federally funded loan. Other than the lender would NOT be able to place a claim against the deceased's estate.

Answer 3

Most Loans Have An Insurance On The Person The Loan Is Made Out To. Check This Out, Get A Copy Of The Contract. If There Is Life Insurance AOn The Person That You Cosigned For, Then The Loan Should Be Paid Off By Insurance On Loan GOOD LUCK

Answer 4

the safe bet is to call them about it. I would assume no though because that's how it works with federal loans and such. there is probably some legal work that needs to be done with sallie Mae for sure so contact them. im sorry for anyone's loss.

Answer 5

yes. don't ever cosign

== ans ==

Very simply - a co-signer of a loan is responsible for absolutely everything as the "other" signer (who may be called primary signer). No difference. That is the whole point of a lender requiring a co-signer! It is because the primary applicant doesn't qualify on their own creditability (for whatever reason) an somebody with better (frequently MUCH better credit) is needed for the loan to be made. (It makes no difference if the other person is related, or not, or working, or not, or this or that - ONLY that they have the needed credit rating to be approved for a loan on their own record. They are in fact getting a loan).

EXCEPT a big difference and one of many reasons to NOT be one, is that the cosigner frequently does NOT have possession or legal control of any property involved in the loan, so using it (say selling it) to pay for the loan can be much more difficult, if not impossible. Add that to a credit professional at a lender is saying the primary does NOT qualify and it is very risky that the loan will be repaid and you see why so many keep saying - NEVER cosign for a loan.

So whatever the responsibility, or recourse, (legal or financial) is for whatever action or lack of action required under the loan (and frequently under law too as many times you are considered the owner of any property connected with the loan), you are subject to also.

When someone dies, the estate becomes responsible for resolving all affairs, like loans. They must use assets to pay off debts, (before anyone else gets anything). If there aren't enough to pay off the loan, then the co-signer (if there is one) is responsible.

Answer 6

Probably not, unless it's a private loan and they live in Wisconsin.

Answer 7

your left with the full bill as there is nobody else to charge