How many private student loans have a cosigner?

The Consumer Financial Protection Bureau found that in 2011 a whopping 90% of the private student loans taken out had a cosigner. This is up from 67% in 2008.

What to do if a cosigned borrower defaults?

Have the defaulted borrower deposit their payments directly into your bank account; then, once the money is in your hands, make the payment directly to the lender. By taking this supervisory role, you can slowly pay the loan off while minimizing damage to your credit and theirs.

What happens when a cosigner of a credit card defaults?

You’re agreeing to take full responsibility for that credit card, car loan or student loan if they can’t — or won’t — pay. If they become delinquent or default, it’s up to you to fulfill the debt and take over their payments, effectively making you, the cosigner, the primary borrower on a loan that wasn’t yours to begin with.

When do federal student loans go into default?

While federal student loans don’t go into default until after 270 days of past-due payments, borrowers with private student loans are beholden to the rules of their loan providers. It’s important to read your loan servicer’s terms and agreement, as well as reach out to a customer representative if you’re unable to repay your debt.

What to do if you are a cosigner on a student loan?

A student loan cosigner unwilling to repay this debt should try to remove themselves from the loan before there are ever issues with repayment. They can refinance student loans with a cosigner to be solely in the primary borrower’s name or work on getting a cosigner release.

Who are the cosigners on a smart option student loan?

In fact, 26% of our Smart Option Student Loan ® cosigners are someone other than the borrower’s parent. 1 Being a cosigner means that you and the borrower share the legal responsibility for repaying the student loan or credit card balance, and making sure payments are made on time.

Who is a cosigner on a Sallie Mae student loan?

Learn about your responsibilities as a cosigner, and how cosigning for a Sallie Mae student loan or Sallie Mae Ignite SM Mastercard ® works. Cosigners are often parents, but a relative or other creditworthy individual may also cosign. In fact, 26% of our Smart Option Student Loan ® cosigners are someone other than the borrower’s parent. 1