Eighteen years ago, Rebecca co-signed a student loan so her daughter Sabrina could finish nursing school, a decision made with love. Today, that loan threatens to take away Rebecca’s home.
Rebecca is 85 now. She lives in rural Virginia, in a small house. Her only income is a $1,650 monthly Social Security check. She’s recovering from multiple strokes and lives with chronic pain. Yet, she’s being held responsible for a $31,000 private student loan originally taken out by her daughter, because she was listed as the co-signer.
The loan was with Navient, one of the biggest names in private student lending. When Sabrina became permanently disabled earlier this year and had her portion of the debt canceled, the company shifted the full responsibility to her mother. The calls kept coming. The balance kept growing.
And now, they both worry Rebecca will lose her house.
This isn’t just one family’s nightmare, it’s a growing national problem. Organizations like the Student Borrower Protection Center, AARP, and the National Consumer Law Center have warned for years about what happens when parents—especially seniors—co-sign private student loans. The consequences can be devastating.
A mother’s support becomes a lifelong burden
In 2007, Sabrina was in her 30s and determined to become a nurse. After years of fast-food and factory jobs, school felt like a second chance. But private loans were the only option. And like most borrowers, she needed a co-signer.
Rebecca was proud and didn’t hesitate.
But life unraveled. Sabrina struggled with bipolar disorder and even to get out of bed was sometimes a big issue. She couldn’t work. Bills piled up. Eventually, she qualified for disability through Social Security.
In May, Navient discharged her from the loan, but not Rebecca. Now, at 85, Rebecca is responsible for $312 monthly payments she simply can’t afford.
“My mom barely makes enough to cover her basic human needs,” Sabrina said. “I’m worried they’ll take her house.”
Despite Sabrina applying for a co-signer discharge on her mom’s behalf, the calls haven’t stopped. “They are unrelenting,” she said.
Private student loans are built for profit—not protection
Unlike federal loans handled by the U.S. Department of Education, private student loans come with far fewer protections. They often require co-signers. They rarely offer forgiveness for death or disability. And getting released as a co-signer? Nearly impossible.
According to the Consumer Financial Protection Bureau, private lenders reject 90% of co-signer release applications.
The Student Borrower Protection Center reports that private student loan debt has ballooned to over $130 billion—more than payday loans or past-due medical bills. Over 90% of those loans involve a co-signer, often a parent or grandparent.
“It’s very, very difficult to get off of the loan if you are a co-signer,” said Anna Anderson of the National Consumer Law Center. “We’ve seen how this can destroy families.”
Anderson says private lenders like Navient have broad collection powers: suing borrowers, placing liens on homes, even garnishing wages—or freezing bank accounts. In some cases, families lose everything.
This crisis is bigger than one family
Rebecca isn’t alone. Stories like hers are unfolding across the country.
In New York, Kathleen Cullen’s father co-signed a loan when she enrolled in a for-profit culinary school. That $30,000 loan has ballooned to $77,000, with a shocking 15% interest rate. Cullen says she was misled about the program. The school has since closed. She’s still bartending—and her dad’s retirement is now in jeopardy.
Consumer advocates say these are symptoms of a broken system. Parents co-sign with the best intentions, unaware that their financial future could be tied to high-interest loans with no way out.
Some borrowers are fighting back but private lenders rarely forgive debt, even when the federal government does.
Until the system changes, families like Rebecca and Sabrina’s will keep paying for it, with their money, their homes, and their peace of mind.