- My dad co-signed three Sallie Mae school loans for my daughter.
Daughter has been making timely payments for over two years.
Father (co-signer) passed away last month.
SIMM associates, Sallie Mae loan servicer, insinuates loan balances are due in full because of death of co-signer.
There is language in the promissory note that says loan "may" be declared in default on death of co-signer.
SIMM provides a note with payoff information, but one loan amount is too high by about $20,000.
When Sallie Mae was contacted, they (correctly, I say) said on presentation of a death certificate, the loan obligation will be the sole responsibility of my daughter.
Death certificate has been provided to Sallie Mae.
I say this is ridiculous, as I don't see any mention on the Internet of a Sallie Mae loan being called because of the death of a co-signer.
In fact, some school loans can actually be forgiven on the death of a co-signer (we're not asking for that!).
What would you experts do? I think SIMM is trying to take advantage of the situation to get their money quickly. You? Have you ever heard of these shenanigans? And who would you go to (eventually) to file a complaint against the servicing company (SIMM)
Thanks in advance.