How can I protect myself from liability if my ex-husband defaults on a co-signed student loan in PA?

Question

I am an endorser on a student loan that my ex-husband and I co-signed for our daughter. Repayment statements began arriving about a year and a half ago. My ex-husband, a sole proprietor of a business, filed for bankruptcy about three years ago, but federal student loans, like ours, are typically not dischargeable. He claimed the student loan was part of the bankruptcy, but AidVantage has no record of discharged accounts. Repayment statements went to an address linked to our daughter, which he hasn't updated, and she often relays messages between us. He doesn't respond to my messages or provide documentation despite claiming the issue is resolved. There are six other student loans solely in his name, on which no payments have been made. The divorce decree does not specifically address this loan, as it simply states that each of us is responsible for our debts. I have discussed my endorser obligations with AidVantage and am unsure of my recourse if he defaults. What steps can I take to protect myself?

James L. Arrasmith · Answer

You need to take immediate action to safeguard your financial well-being since federal student loans typically survive bankruptcy proceedings. First, request all loan documentation from AidVantage, including payment history and current status, to establish a paper trail showing your proactive involvement. Then consider consulting with a family law attorney in Pennsylvania who can advise you on filing a petition to modify your divorce decree to specifically address this student loan obligation and potentially shift responsibility to your ex-husband. 
 
Your next step should be establishing direct communication with AidVantage rather than relying on messages passed through your daughter, ensuring you receive all notices directly and can monitor the loan status yourself. Consider making payments on the loan yourself if possible, then pursuing reimbursement from your ex-husband through legal channels - while this seems unfair, protecting your credit score often takes precedence over principle. You might also explore options for removing yourself as an endorser through loan consolidation or refinancing, though this would likely require your ex-husband's cooperation or your daughter taking over the loan. 
 
Document everything - save all communication attempts with your ex-husband, keep records of any statements claiming the loan was discharged in bankruptcy, and maintain a complete paper trail of your efforts to resolve this situation. The unfortunate reality of co-signing is that lenders can pursue either party for the full amount regardless of what your divorce decree states, making this documentation essential if you need to demonstrate your good faith efforts to a court later. Remember that addressing this proactively now will save you significant stress and financial hardship compared to waiting until the loan falls into default status.

Q: How can I protect myself from liability if my ex-husband defaults on a co-signed student loan in PA?