What happens to an endorser during consolidation?

So here’s the scenario:

You have an endorser (co-signer) on your current loan.  You decide you wish to consolidate this loan/these loans with other loans to form a consolidation.  Does your endorser need to fill out the paperwork as well?

Not at all.

In fact an endorser is eliminated whenever you consolidate.  The reason for this is the consolidation loan pays off your old loan that the endorser was on and forms a new loan.  For this new loan you don’t need someone to cosign for you.

While this has no real affect on you (except maybe helping a relationship if the loan goes bad) this is great for the endorser as they are no longer liable for your loan if you don’t pay.

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