A cosigner has the right to sue the primary borrower on a student loan to recover the money they spent making the loan payments. So if you don’t make any loan payments, you may not be able to sue the primary borrower to recover money. But if you do pay back some of the student loan debt, then you would be able to sue to try to recover the money you’ve paid.
Most federal student loans don’t require a cosigner. So if you cosigned a student loan, it was most likely for a private loan.
Can I sue to get my name off a loan? You can’t sue to get your name off a loan that you legitimately cosigned — even if your ex spouse was ordered to pay the student loans in a divorce. The lender isn’t required to release you from the loan unless you’ve met the requirements for the cosigner release in the promissory note.
What happens to a cosigner on a defaulted student loan? When a student loan defaults, the lender can go after the primary borrower and the cosigner to recover the money owed. At first, the lender will report negative information to the credit bureaus and contact you both demanding payment. Go long enough without payment, and the lender will eventually sue the cosigner or primary borrower or both to get a judgment. Until the lender gets a judgment, they cannot get a wage garnishment order or put a lien on your home or take money from your bank account.
What happens if you cosign a student loan and the other person doesn’t pay? The lender will go after the co-signer when the person who borrowed the student loans doesn’t pay. It will call you and demand payment. It will contact the credit bureaus and leave negative marks on your credit report. Eventually, if no payments are made, the lender will sue you and the primary borrower if they can find them. A lawsuit is the only way the lender can take money out of your paycheck or bank account.