What happens if a Sallie Mae cosigner dies?

What happens if a Sallie Mae cosigner dies?

Some private student loan lenders, such as Sallie Mae, do discharge a loan after the borrower dies. Others, however, will try to claim the remaining balance from an unmarried borrower’s estate. If you are married and have private student loans, the lender could go after your spouse for the remaining balance.

What happens if a cosigner on a student loan dies?

Removing a cosigner from a student loan if they pass away As a cosigner, your mother was as legally responsible for repaying the loan as your daughter, the primary borrower. Private lenders, however, will often now remove the cosigner from the loan agreement upon their death.

Are spouses responsible for student loans after death?

Generally, a living spouse will not be held legally responsible for repaying student loans that belonged to the deceased spouse. A spouse might also be required to repay a deceased partner’s private student loans if they reside in a community property state.

What happens to cosigner if borrower dies?

If the borrower dies, the lender will charge the debt against the borrower’s estate. The cosigner may become responsible for repaying the remaining debt after the estate is settled.

Does a cosigner have to pay if the person dies?

When someone dies, the person’s estate is obligated to pay off his debts. If the estate doesn’t have enough money, then you, as the cosigner, are on the hook for whatever debt remains. The law in most states doesn’t require lenders to collect from the borrower or his estate.

Do Sallie Mae loans need a cosigner?

Many borrowers dream of applying for a student loan with no cosigner. While most student loans require a cosigner, Sallie Mae doesn’t. Under special circumstances, you can secure a loan by yourself and achieve the dream of independence.

Why is Sallie Mae asking for a cosigner?

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. Agreeing to be a cosigner may make it easier for the borrower to be approved.