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A payment plan without a cosigner!

West Orange, NJ |

I am a co-signer of a relative on a student loan for $60,000, and its on the way for the final judgment, my relative was able to negotiate a payment plan which I don't want to sign, will he be able to do that with only his signature?

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Attorney answers 3


This is a very serious question that I think you should consider speaking with an attorney about. If your relative does renegotiate the debt, and you do not sign on, you may well still be on the "hook" for the original note you did agree to cosign. In fact, if the payment plan includes a reduction in principle, that does not mean that you get the same benefit unless the modified loan specifically extends that benefit - or the "new deal" - to you. So, if your relative gets a principle reduction the creditor can come after you for the full amount of the loan anyway! In case this is not making sense to you let me be very clear: If the new payment plan reduces your relatives liability from $60,000 to $40,000 and gives your relative 10 years to pay off the $40,000, the creditor is not agreeing to let you off the hook and the creditor cane, and likely will, come after you for the "forgiven" $20,000.

Even if the new payment plan just changes the monthly amount due, you should be involved in the agreement in order to protect yourself. if you think the payments are not feasible maybe you can help get a payment plan your relative can actually afford.

Either way, your relative is already in default and if the payments are not made by your relative YOU are liable for the full amount of the note you originally co-signed, UNLESS YOU make a deal withe the lender.

Again, I would seriously consider speaking to an attorney and paying the fee for an hour of their time to have a professional look at the loan documents and provide you with some additional guidance.

Good luck and, as always… Make it a Great Day!

Karina Lucid
(908) 350-7505

This answer is offered as a public service for general information only and may not be relied upon as legal advice. No attorney-client relationship is created or is intended to be created hereby.


Yes, a co-signer can make a payment plan without the other co-signer.

Their liability is modified according to the settlement they sign, and you will receive credit for any amounts they actually pay.
You remain liable for what you signed, unless the lender is willing to also release you.

General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.


I agree with Ms. Lucid's answer and would have given you the same information as a bankruptcy specialist.

The previous information is solely for informational purposes only. If you have further questions, please contact an attorney in your area for more specific answers. Responding to your question in no way creates an attorney/client relationship, and none of the specific guarantees of privacy exist. If you have found this information helpful, kindly check the "helpful" box.

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