What Happens If a Cosigner on a Student Loan Dies?

Losing a loved one is heartbreaking. And if that person also cosigned your student loan, the emotional weight can be compounded by financial stress. If you’re wondering what happens if a cosigner on a student loan dies, or you’re dealing with this situation right now, you’re not alone—and you’re not without options.

While this probably isn’t your first concern in a time of loss, understanding how your loan may be affected can help you stay ahead of any unwanted surprises. In this guide, we’ll walk through what typically happens when a private student loan cosigner dies, and how to protect yourself and your credit during a tough time.

Table of Contents

1. Step 1: Review your paperwork and contact your lender
2. Private lenders’ policies if a cosigner dies
3. What to do if your cosigner passes away
   1. 🏦 1. Refinance the loan
   2. 📞 2. Contact your lender to work out a repayment plan
   3. 📝 3. Ask to remove the cosigner
   4. 👤 4. Add a new cosigner
   5. ⏸ 5. Request forbearance
4. What if your cosigner is seriously ill?

Step 1: Review your paperwork and contact your lender

The first step? Check your loan documents—specifically your promissory note. This document outlines your loan’s terms, including what happens if your cosigner passes away. If you don’t have a copy handy, you can usually access it through your lender’s online portal.

Keep in mind: Federal student loans don’t require cosigners, so if your loan is federal, you’re in the clear. But if your loan is private, the rules can vary by lender.

Some private student loans include a clause that triggers automatic default if your cosigner dies—even if your payments are up to date. While this is becoming less common, it’s still found in some older or stricter contracts. Don’t panic—lenders may not enforce this clause, especially if you’re proactive.

👉 Call your lender right away to ask what your options are. It may remove the cosigner without issue, especially if you’re in good standing. If not, refinancing may help you avoid harsher terms.

Read More

Do You Need a Cosigner for Student Loans?

Private lenders’ policies if a cosigner dies

When a private student loan cosigner dies, what happens next depends on your lender. Some will simply remove the cosigner and let you keep making payments. Others might review your credit or even reassess your eligibility—though outright calling the full loan due is rare these days.

Here’s a look at how a few private lenders handle this situation:

Lender	Cosigner death policy
College Ave	“You can provide us with a death certificate for us to remove the cosigner from the loan.” [College Ave customer service]
SoFi	“[T]he student is still responsible for the balance on the loan.“
Citizens Bank	“If a cosigner passes away … the primary borrower is responsible for the remaining amount due.“
Ascent	“The only time a cosigner must be removed from a student loan is upon the cosigner’s death. Your loan won’t be canceled if this happens.“
RISLA	“RISLA may still pursue payment from the surviving borrower and/or the cosigner’s estate. RISLA must receive a death certificate or proper documentation of the student’s permanent disability to process the forgiveness benefit.“
Brazos	“If the cosigner dies, the cosigner is removed from the loan, and the borrower will be solely responsible for repayment of the loan for the remainder of the repayment term. We do not accelerate debt upon death of any party to the loan, and we will not pursue the estate of a deceased individual.“
MEFA	“If a non-student co-borrower passes away, that person will be removed from the loan, but the loan will not be discharged.“
ISL Education Lending	“In the event of a cosigner’s death, the borrower will not be required to find a new cosigner for an existing loan.“

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If there’s a large balance on a private student loan, consider a term life insurance policy on the cosigner that matches the loan’s repayment schedule.

Options include traditional term life (fixed benefit and premium) or decreasing term life (shrinks with the loan balance). The cosigner must be insurable, but if not, a guaranteed issue policy—with no medical exam—may still be available. These have higher premiums and lower benefits but can provide enough coverage to protect the borrower while they reassess their financial strategy.

What to do if your cosigner passes away

If your private student loan cosigner dies, take a deep breath. You’re not powerless here. These are your next steps:

🏦 1. Refinance the loan

Refinancing your student loan with a new lender can help remove your deceased cosigner and possibly lower your interest rate. If your credit has improved or you have someone else willing to cosign, refinancing could give you a clean slate—without the emotional weight of an old loan tied to a loved one’s name.

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Tip

If you’re unsure where to start, consider using a comparison site. Credible is our pick for best for comparison shopping because it lets you check rates from multiple lenders in one place, without affecting your credit score. That way, you can explore your options on your own timeline.

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📞 2. Contact your lender to work out a repayment plan

If you’re struggling to make payments, ask about adjusted payment options. Some lenders may offer lower monthly payments or an extended repayment term.

📝 3. Ask to remove the cosigner

If the lender’s policy allows, you may be able to remove the cosigner’s name entirely. You’ll likely need to submit a death certificate and possibly pass a credit check.

👤 4. Add a new cosigner

In some cases, you can reapply with a new cosigner. This may be useful if your credit doesn’t qualify you to refinance on your own—but be aware this will restart the loan application process.

⏸ 5. Request forbearance

If you’re unable to pay and need time, your lender may offer a temporary forbearance. Interest usually accrues during this time, so it’s a short-term option, not a solution.

What if your cosigner is seriously ill?

If your cosigner is ill or aging and you’re concerned about what might happen, it’s wise to be proactive:

• Talk to your lender now. Ask whether you qualify for cosigner release or could refinance the loan in your own name.
• Get your documents ready. You may need proof of income, credit history, and a formal release request.

Explore refinancing. If you have a strong credit profile, refinancing can give you full control of the loan and spare your cosigner any further burden.

I recommend reviewing your loan agreement and speaking with your servicer to understand available options. If eligible, refinancing the loan independently is often the best solution.

If that’s not possible, consider a life insurance policy on the cosigner to reduce financial risk. No matter the approach, it’s important to act proactively, maintain open communication with the lender, and establish a clear plan. If you’re unsure how to proceed, consult a financial or legal professional to help you make informed decisions and navigate the process confidently.

Final thoughts: You have options

If your private student loan cosigner dies, it can feel overwhelming—but you’re not without options. The most important action you can take is to communicate with your lender early and often. Most will work with you, especially if your payments are current and you’re transparent about your situation.

Whether you pursue refinancing, ask for a repayment plan, or request forbearance, there are ways to stay in control of your loan—and your peace of mind.