Question
co-signer on loan...?
If someone takes out a student line of credit and has to have a co-signer when the loan is taken out, can the loan be changed over to be the sole responsibility of the person taking out the loan? (no more co-signer?)....it's an Royal Bank of CANADA loan if that helps
3 years ago - 4 answers
Best Answer
Chosen by Asker
As a general rule the bank will not go along with your plan simply because it is better for the bank to have a back-up to go to if the debtor defaults on the loan. But, your question is really academic for this reason: The co-signer would never be removed unless the debtor now has solid gold credit and if that is the case then the co-signer needn't worry about ever being called upon to preform since the debtor won't default. If for some other reason you want to get the co-signer off the note and have good credit you can simply go to the bank and refinance the loan. The proceeds from the new loan will be used to pay off the old and the co-signer is off the hook. If Royal Bank won't go along with this then find a bank that will (assuming you have the credit rating to do it).
by Flyboy
3 years ago
Asker's Rating: 
Other Answers
The co-signer can be removed from the loan only if the bank approves of it. That's not going to happen unless the debtor has the means to repay the debt.
by Studly- 3 years ago
Unfortunate no, When a cosigner signs for a loan (student loan, vehicle, house ect ect) they are just as responsible for the loan as the Buyer, or the 1st person on the loan. If the buyer fails to make payments the cosigner is legally responsible for the loan. The only way to remove a name from a standing contract would be for the 1st person to refinance the loan without a cosigner.
by Jen G- 3 years ago