Private Student Loan Cosignor with Navient

[wwtthhpp]

My grandmother cosigned on my student loan back in 2007. She passed away in 2015. I have made my payments on time for the last several years with no deferments or forebearance so I recently sent in paperwork for a release of cosignor from my student loan. I am also currently considering filing for bankruptcy (I know that these are not likely to be discharged and that is not what I am trying to do).

I have read some language that says if a cosignor dies, private student loans can automatically go into default. She died 4 years ago though and nothing really changed but I am not sure if they were even notified, I know I did not notify them. I have also read that if you file bankruptcy then they automatically put private student loans in default. I have searched my account online and paperwork at my house but cannot find the promissory note or other documentation. I also noticed my loan has been "sold" several times.

I've been reading horror stories about getting cosignors removed so I'm not hopeful that I'll be successful even though I meet the criteria. I'm concerned about the bankruptcy thing though. Does anybody else have any experience with this type of thing on their private student loans?

[RobertEG]

If a cosignor becomes deceased, their estate then remains obligated for debt of the deceased party.

The creditor can then, if the primary consumer defaults, usually seek repayment from either the primary consumer of the estate of the deceased cosignor.

If the administrator of the estate failed to deal with that debt obligation when he/she administered the estate, you could have subsequent problems if the well is now dry.  I would contact the administrator and discuss what provisions were made for the unresolved debt obligation when the estate was settled.

Most cosignee agreements include specific language making it clear that obligation for debt is for the cosignee and his or her heirs/estate.

Standard stuff.....