Co-signing a loan is a big deal. For a student, having you co-sign can open doors, often leading to a much lower interest rate or approval for a loan they couldn’t get on their own. As the co-signer, you might even see a small boost to your credit by being on an account that’s paid on time. But dealing with private student loan debt can be a serious challenge for some people. If you are a co-signer and have concerns about the borrower’s ability to make each payment, you have every right to be worried. It can be a difficult position, watching the primary borrower struggle with their finances. You are likely wondering about your own liability and asking yourself, “Can I actually be sued for this student debt?” The short answer is a hard yes. Let’s break down exactly what that means for you. What Happens if the Primary Borrower Misses a Payment on a Private Student Loan? The Lender Expects You to Pay Instead. When you co-signed that private student loan, you signed a legally binding contract. This contract makes you equally responsible for the entire loan amount. In the eyes of the law, the debt is just […]
