I co-signed my friend's student loans a decade ago and I just found out she’s stopped paying. What are my options?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Danielle AntoszSun, February 22, 2026 at 1:00 PM GMT+1 6 min readCo-signing a student loan might feel like a short-term favor, but for many people it becomes a long-term financial risk. According to higher education expert Mark Kantrowitz, more than 90% of private student loans require a co-signer, meaning two people are equally responsible for the debt.“A co-signer is often required for a private student loan because the student borrower has a thin or non-existent credit history,” Kantrowitz told CNBC (1). “They are an unproven asset.”Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPRobert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’That obligation doesn’t go away until the loan is repaid, and it doesn’t matter who benefited from the loan.Imagine Jessica, a 28-year-old who agreed to co-sign her friend’s private student loans when she was 22 years old. At the time, she was newly on her own and trying to help someone she trusted. Her friend needed a co-signer to finish her degree and promised to stay current on payments. She also told Jessica she’d refinance the loan as soon as she could. For years, everything seemed fine.But Jessica recently learned the loan is several months past due and her friend has stopped paying — and stopped responding to her messages. The lender has begun calling Jessica directly, warning that they will soon report the late payments to the credit bureaus.Taking over the loan payments could undo years of work Jessica has put in digging herself out of credit card debt, but letting it default could damage her credit. What can she do to remain financially healthy?Jessica’s situation illustrates a risk millions of Americans take, often without fully understanding the consequences. Private student loans are especially risky for co-signers because they lack many of the protections built into federal loans. There are typically no income-driven repayment plans and few forgiveness options. Even when co-signer release programs exist, they are rarely granted, and generally require the main borrower’s approval (2).“Lenders are generally averse to removing a cosigner,” Dean Kaplan, president of The Kaplan Group, told U.S. News.“If they let the cosigner off and then the borrower defaults, the lender is facing a greater financial loss than if they had not released the cosigner (2).”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,837.75 -71.76 (-1.04%)Dow 3048,804.06 -821.91 (-1.66%)Nasdaq22,627.27 -258.79 (-1.13%)Russell 20002,620.77 -43.01 (-1.61%)VIX21.42 +2.33 (+12.17%)Gold5,253.10 +172.20 (+3.39%)Trending tickersBTC-USD Bitcoin USD 64,440.07 -2,910.76 (-4.32%)IBM International Business Machines Corporation 223.37 -33.79 (-13.14%)PYPL PayPal Holdings, Inc. 44.05 +2.40 (+5.76%)NVO Novo Nordisk A/S 39.63 -7.79 (-16.44%)MA Mastercard Incorporated 496.40 -30.01 (-5.70%)PortfolioSign in to access your portfolioSign inTop gainersACLX Arcellx, Inc. 113.75 +49.64 (+77.43%)IBRX ImmunityBio, Inc. 9.83 +1.13 (+12.99%)VRE Veris Residential, Inc. 18.83 +2.06 (+12.25%)VKTX Viking Therapeutics, Inc. 34.46 +3.43 (+11.05%)USAR USA Rare Earth, Inc. 18.79 +1.56 (+9.05%)Top losersNVO Novo Nordisk A/S 39.63 -7.79 (-16.44%)BLLN BillionToOne, Inc. 72.10 -13.32 (-15.59%)IBM International Business Machines Corporation 223.37 -33.79 (-13.14%)RNG RingCentral, Inc. 34.58 -4.92 (-12.46%)STEP StepStone Group Inc. 43.94 -6.13 (-12.24%)Most activeNVDA NVIDIA Corporation 191.55 +1.73 (+0.91%)NVO Novo Nordisk A/S 39.63 -7.79 (-16.44%)IBRX ImmunityBio, Inc. 9.83 +1.13 (+12.99%)SOFI SoFi Technologies, Inc. 18.23 -0.79 (-4.15%)PYPL PayPal Holdings, Inc. 44.05 +2.40 (+5.76%)Top economic eventsEarnings eventsMy earnings eventsEarnings events