I’m the Co-Signer But the Student Loan Debtor Ran Off

Question:

Dear Steve,

As co-signer, my debt was discharged due to disability and hardship.

Is the original borrower still responsible for his own debt? The loan was through Discover, for about $25,000, with me paying on that loan for 10 years. The original borrower, the student, ran off and hid with no contact. I’m just curious. I hope he’s still responsible for the remaining loan amount!

Is the original borrower still responsible for his loan since I’ve been discharged as co-signer due to hardship/disability?

Marilyn

Answer:

Dear Marilyn,

It sounds as if you were a co-signer on a Discover private student loan and that you have an approved discharge for permanent disability.

You should confirm your status with Discover to make sure it was a total discharge of your responsibilities and liability for this loan. If it was, then you have no further obligation on this loan.

However, if you are still receiving calls or correspondence about this loan, they may have placed you in a deferment and not a discharge.

The only way to know for certain is to verify your status with Discover and have some correspondence on hand that explicitly says your loan obligation has been eliminated.

If you are confident you did receive a total and permanent discharge of your obligation as the co-signer, then the original borrower is still on the hook for the loan, and it’s not your concern anymore.

Sincerly,
Steve

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