Skip to Content

Co-Signers: Three Things to Consider

student loan application with piggy bank and pen

During the COVID-19 pandemic, student loan debt was a huge topic and concern. While federal student loan borrowers have been given a long-term respite since the onset of the viral pandemic, private student loan borrowers were virtually left out in the cold in terms of deferments offered by The CARES Act.

As unemployment continued to grow at an alarming rate, many ineligible federal borrowers and private student loan borrowers were not only worried but tired of being left behind in the face of huge financial uncertainty. There was a huge amount of confusion overall, at first, when finally it was spelled out clearly: if you had a private student loan, the deferments did not apply to you. And even as a federal student loan borrower, you were only eligible if you had a student loan completely owned by the government.

While some private loan servicers have offered a modicum of sympathy and minimum in deferment programs, many co-signers are beginning to have worries about the future—especially as millions lost their jobs and still may not be back in the job market despite a promising rise in employment. Primary borrowers are not the only ones worrying though, as the pandemic was not choosy about who it affected. US citizens on every level were left worrying about their health and their finances, and that’s why questions about co-signers quickly began to arise.

If are a co-signer, take time out to consider several things:

  • The status of the student loan – how much is still owed, and what is the interest rate?
  • How close to default is the borrower, if at all?
  • Is there a chance for refinancing?

You should be able to speak to the borrower about what’s going on and what options are available; however, while you may not be able to speak with the lender about the borrower’s confidential information, there are many pertinent general questions that you can ask about regarding deferments and forbearance, how to deal with ongoing missed payments, and of course most importantly, how you as the co-signer will be affected. If you have been contacted by a creditor or debt collection agency, speak with an attorney as soon as possible to discuss your options as a co-signer—and especially before your own credit is hurt or you are sued.

If you are being sued, contact an attorney from Fitzgerald & Campbell, APLC as soon as possible to avoid the possibility of having a default judgment granted against you, which could result in the following: wage garnishing, levying of property, or freezing of checking accounts.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at

Share To: