My private school loans are through an Access Group Sponsor Loan. I misunderstood and thought this was the same as a Co-Signer. Instead, the loan is my grandmother’s on my behalf. I am concerned what would happen if she dies. Would it transfer to me or be paid by her estate?
What Happens When The Borrower Of A Private Student Sponsor Loan Dies?
February 27th, 2010 by Home Loans Leave a reply »
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It sounds like it is your grandmother’s loan. If she dies, the loan company would have to put in a request for payment from her estate. If her estate can’t pay it, they might come after you. You should not make any payments, or even agree to make any payments, until you are sure you have to repay the loan.
You would pay it. If you died, she would pay it.
If you did not sign for the loan – either as borrower or cosigner – then the debt is not your responsibility.
It sounds like she took out a loan to benefit you, but this does not make you a borrower or cosigner…..unless you had signed as such.