How do you un-co-sign a student loan?

Question

My mom cosigned a student loan for my brother when he was a minor. Now he is over 21 and will probably default on the loan. How can she get out of this situation?

Answer 1

Never, ever, ever, ever, ever cosign ANYTHING for ANYONE. NEVER. Just don't do it. If someone can't get credit - especially student loans which are EASY - on their own, they are not worth putting your credit at risk! Now... what can your Mom do? There are several options.

First, realize that as far as student loans are concerned, being a minor at the time of the loan is NOT a defense for defaulting on the loan. Student loans are treated differently from just about any other kind of contract, in that being a minor you can get a student loan, and still be held responsible for it.

- If he has NOT defaulted, I strongly advise he "consolidate" the loan(s) in his name only. (Tell him it'll help his credit rating, give him lower payments, ease your mom's stress, whatever it takes - even if it won't!) Consolidation is, more or less, like refinancing. Basically, have your brother refinance or consolidate the loan(s) in his name only. This will be the simplest, and usually quickest, way to get Mom's name off of the loan.

If he has NOT defaulted, and has been making on-time payments for a while, your mother can call the lender and see if there is anyway they will remove her from the loan. They probably will say no, but it never hurts to ask!

If he HAS already defaulted, go to the US Department of Education's website and read and learn all about the various options available for defaulted student loans, including "rehabilitating" the loan. Check into forbearance, consolidation, economic hardship deferrals, etc. http://studentaid.ed.gov P.S.: Bankruptcy is NOT an option - student loans generally cannot be cleared in bankruptcy.

The #1 problem with cosigning is the lender is going to go after the person who it is EASIEST to get money from - in this case, your mom. There are few options for her if he has defaulted, and the lender is not going to be sympathetic. She can try to work out payment plan with them, and they often will do this, but remember that they don't care who pays it back, just as long as it is paid back.

Answer 2

1

Answer 3

The only way for a co-signer to get out of a loan is if someone else completly takes over the loan. Your momo co-signed for your brother in the hopes that he will actually make the payments. When he can't, your mom is supposed to. She basically put up her credit in hopes her son would actually make the payments. Since he can't, she is either stuck paying them. One thing she can try is for him to get a loan in his name, which would cover most of the amount, or try to get credit cards in his name and clear it off that way. Then, if your brother doesn't pay, its all on him, but since he probably doesn't have any credit this probably won't happen.

Answer 4

right here is the deal. What would be relatively a clever concept is which you may graduate early given which you're certainly in the perfect 5 place of your contemporary type. in case you're actually not then you relatively are growing to be a difficulty the place you will spend greater for college. You be conscious for loans for the duration of the FAFSA and then the school provides you with a financial help equipment. Your mom will could provide suggestion for the FAFSA which will fee not something. Your mom is under no criminal duty to take out a private loan for you. you would be provided with a bit of luck scholarships, provides (perhaps), backed loans and unsubsidized loans. You sign for what you prefer and you'd be to blame. it somewhat is relatively useful to to certainly study how the approach works. For one element, you does not be emancipated because of the fact procuring your telephone, outfits and foodstuff isn't considered autonomous. Your mom will pay for you and you're in straightforward terms procuring what you prefer not your authentic fee of living. the only cases courts would even entertain the belief is that if your parents have been lifeless or in case you certainly have been helping your self which you're actually not in accordance to their standards. you may stay your senior twelve months and definitely do a rigorous time table and spend the twelve months using for scholarships so as which you will certainly take duty on your college. additionally you are going to be saving 50 cents on each and every greenback for college. think of how your mom will sense once you certainly save your money and be conscious to 6 colleges and pass to the single that supplies you the excellent equipment. How stable will you sense being rewarded with the help of scholarships given on your super grades and super ACT or SAT scores. then you relatively can pass the place you prefer.

Answer 5

Regardless of his age then and now, you can not get out of the responsiblity as a co-signer. However, your mom can have your brother to sign an agreement saying he will make the payments on time and if your mom is held responsible for his default, she can take your brother to court.

Answer 6

She probably can't. That's why they have co-signers. Check with the bank and see if she can be "released"; but if the loan is behind, not going to happen.

Answer 7

she probably can't. she signed a legal document promising to pay if he defaulted. I am sure that was plainly spelled out.Unless you can prove that she was mentally incompetant at the time, then she will get the judgement to pay his loan.

Answer 8

Emancipate his butt and contact the bank ASAP

Answer 9

Can you elaborate?