Did you know that if the 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 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.Email your student loan servicer to ask for a co-signer release. 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. Protect yourself: email your loan servicer with the CFPB’s letter now! studentdebtcrisis.org/have-a-co-signer-on-your-student-loan-email-your-servicer-now-to-protect-yourself/
Posted on: Thu, 15 May 2014 23:51:06 +0000