If you cosign a loan:
A) you are only responsible for half of the debt obligation.
B) you will be asked, but not required, to pay the loan if full if the borrower fails to pay.
C) you will be required to pay the loan in full if the borrower defaults on the payments.
D) the creditor must first try to collect from the borrower.
E) the creditor is prohibited from garnishing your wages if you refuse to pay the loan in full.

Question

Quizplus · Accepted Answer

When you cosign a loan, you are agreeing to be responsible for the entire debt obligation if the borrower fails to pay. In other words, you are a guarantor for the loan, and the lender can come after you for the full amount if the borrower defaults. Therefore, it is important to carefully consider the risks and make sure you are willing and able to handle the potential financial consequences before you cosign a loan.

If You Cosign a Loan