Older woman sitting at laptop looking very stressed

A 74-year-old retired woman lives on Social Security as her only income. Back in 2022, while she was still working, she co-signed a student loan for her niece.

Her niece promised she’d get her aunt removed from the loan after a year of on-time payments. Instead, the payments have been inconsistent, the loan is behind, and the lender keeps calling, so now she’s wondering whether to make a catch-up payment herself.

💸 Take Back Control of Your Finances in 2025 💸
Get Instant Access to our free mini course
5 DAYS TO A BETTER BUDGET

Retired at 74 on Social Security

She’s retired and relies entirely on Social Security. There’s no other income coming in each month.

Many retirees live on fixed incomes that leave little room for surprises. Rising prices for groceries, medicine, and utilities can stretch those checks thin.

For someone in her situation, even a few hundred dollars can make a big difference. Every payment has to be carefully considered.

Co-Signing for Her Niece in 2022

In 2022, she co-signed a student loan for her niece through Sallie Mae. At the time, she was still working.

Co-signing means agreeing to take responsibility for a loan if the main borrower doesn’t pay. It can help someone qualify, but it also puts the co-signer’s finances on the line.

She agreed because she wanted to help her niece. She trusted that the loan would be handled responsibly.

Promise to Be Removed After a Year

Her niece told her that after a year of making payments, she would have her aunt taken off the loan. That reassurance made co-signing feel less risky.

Some lenders allow co-signer release after a borrower makes a certain number of on-time payments. But that usually depends on the borrower meeting specific requirements.

She expected that once her niece built a payment history, she’d be released. That never happened.

Missed and Late Payments

Over the years, her niece hasn’t made payments consistently. Right now, the loan is behind.

Missed payments can quickly lead to late fees and added interest. That can make the balance grow even as the borrower tries to catch up.

Because the loan isn’t current, she doesn’t believe the lender will release her as a co-signer. She feels stuck with the responsibility.

Telling the Lender She Couldn’t Pay

About two years ago, she told a Sallie Mae loan officer that she couldn’t afford to make payments. Since then, she has mostly ignored requests to pay.

She left the payments to her niece. She hoped her niece would keep the loan from falling further behind.

That hasn’t happened. The lender still considers her responsible as a co-signer.

Calls and Emails That Keep Coming

Sallie Mae continues to email and call her about the payments. The reminders haven’t stopped.

Collection calls can be stressful, especially for someone living on a fixed income. They can make it feel like the problem is always hanging over her.

She worries that ignoring them could eventually lead to bigger problems. She’s unsure what the lender might do next.

Credit Already Damaged

Her credit has already been badly damaged. Late payments on a co-signed loan affect both the borrower and the co-signer.

A lower credit score can make it harder to qualify for loans, rent an apartment, or get favorable rates on insurance. For a retiree, those effects can still matter.

She feels like the damage has already been done. That’s part of why she’s unsure whether paying now would help.

Considering a Catch-Up Payment

She’s thinking about making a payment to help bring the loan current. Part of her hopes it might ease the pressure.

But she’s worried that paying could signal she’s able to keep paying, possibly leading the lender to pursue her more aggressively. She’s left trying to decide whether a catch-up payment would protect her or pull her deeper into a debt she can’t afford on a fixed income.

Featured on Cents + Purpose: