If your co-signer (usually a parent or grandparent) on your private student loans dies or files for bankruptcy, your loan servicer may automatically put you in default and demand you repay the remaining balance of your loans immediately – even when your loans are in good standing.
You may be able to prevent this with what’s called a “co-signer release” – an option that many servicers provide to release your co-signer from your loans.
The Consumer Financial Protection Bureau (CFPB), the federal agency that oversees student loan servicers, has produced two sample letters – one for borrowers and one for co-signers – so you can tell your servicer to release your co-signer. Here’s a simple way to make this process even easier for you.
Click on your servicer below to send them an email with the CFPB’s letter to protect yourself:
|For borrowers looking to release their co-signers|
|For co-signers looking to be released from a student loan|