TomnTex

YOU MAY BE ON THE HOOK FOR A DEFAULT IF THE CO-SIGNER DIES

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That isn't accurate and the thread title is VERY misleading.  I read the same stories today.  As the borrower you are ALWAYS on the hook for a default that happens.  What this story is about is when the co-signor passes away or files BK.  The lender can call the entire loan due at that time and if the borrower cannot pay they could technically call it a default.  This is known as the acceleration clause.  What you left out is that few lenders do this when the loan is in good standing.  

 

This is not a new clause or concept in a loan document nor is it unique to student loans.  This is a risk to all borrowers that have a co-signor and it is a risk to the co-signor as well if the borrower dies or files BK.  

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