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lev-tax
lev-tax, Tax Advisor
Category: Social Security
Satisfied Customers: 29535
Experience:  Taxes, Immigration, Labor Relations
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I'm on disability and co-signed loan son to go to college.

Customer Question

I'm on disability and co-signed for a loan for my son to go to college.
He defaulted on that loan. Since I'm on disability can I be dropped as a co-signer?
Submitted: 1 year ago.
Category: Social Security
Expert:  lev-tax replied 1 year ago.

You would need to discuss that issue with teh loan provider.

Actually - if you son is agree to take teh full responsibility - and the creditor agrees - you may be released from the loan as a so-signer.

It is possible that the creditor will require to refinance the loan.

But otherwise - all parties must agree to release your from liabilities.

Expert:  lev-tax replied 1 year ago.

According to the terms of the NJCLASS Loan Program Promissory Note, if the student becomes totally and permanently disabled and the student is not the borrower, the borrower still has the legal obligation to repay the loan. If the borrower becomes totally and permanently disabled and the borrower is the only obligor on the note, the borrower’s legal obligation to repay the loan is forgiven. If there is a cosigner for the loan, the cosigner is legally obligated to repay the loan. If there is a co-borrower or joint cosigner, the co-borrower or joint cosigner is legally obligated to repay the loan if the borrower or the cosigner becomes totally and permanently disabled.

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