This 86-year-old just got her nearly $32K student debt forgiven after cosigning for her cash-strapped daughter 20 years ago — says it was a ‘very difficult’ process lacking transparency

She eventually qualified for a disability-related discharge in September since she’s unable to work. But the process to get there, as CNBC reported, was "very difficult," according to Finch's daughter.

If you're on the hook for a student loan, you may be hoping for similar relief. But unfortunately, navigating the process may prove more challenging than expected.

The problem with cosigning a student loan

Cosigned student loans are far from an anomaly. Lending Tree reports that about 93% of private undergraduate loans and 69% of private graduate student loans were cosigned during the 2023 to 2024 academic year.

The problem, though, is that when you cosign a student loan and the primary borrower is unable to make payments, that burden shifts onto you. And if you’re retired and on a fixed income, making those payments may be tough or close to impossible.

The average retired worker today on Social Security collects about $1,924 per month. And many seniors end up living mostly or solely on Social Security. Getting stuck with student loan payments in that situation could be extremely detrimental to your finances — so much so that getting your debt forgiven may be your only viable option.

The challenge of student loan forgiveness

Federal student loans come with built-in protections for borrowers with permanent disabilities. Unfortunately, those protections are harder to come by with private loans — even in situations where the debt in question is clearly going to be difficult to pay off, like in Finch's situation.

CNBC references an analysis by nationally-recognized student loan expert Mark Kantrowitz when it says only about half of private student loan lenders offer the possibility of loan forgiveness in the event of a borrower becoming disabled and unable to work. But even when private lenders technically offer this option, figuring out how to access it can be tough.

And while you'd think calling your loan servicer would do the trick, it often doesn't. Even if you get someone helpful on the phone, they may not have the information needed to steer you in the right direction.