What will happen if a cosigner on my student loan declares bankruptcy?

If a cosigner on your student loan enters bankruptcy, you may need to replace the cosigner. This depends on the terms your lender would like to pursue. You likely needed the cosigner initially because you did not qualify for the loan on your own. If that cosigner has no credit to back you up any longer, you will need to supply the credit in some other way. If your personal credit has improved, you may attempt to refinance the loan to your name alone. Otherwise, you will need to secure a new cosigner or source of collateral to replace the lost security on the loan.


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