You are being asked to guarantee payment of this debt. If the borrower does not pay the debt, you will have the obligation to pay the loan. Be sure that you want to accept this responsibility. You may have to pay up to the full amount of the debt including interest if the borrower does not pay, as well as late fee or collection costs, which increase this amount.

The creditor can collect this debt from you without first trying to collect from the borrower. In the case of the borrower's default, or the cancellation of the borrower's debt due to death or total and permanent disability, the creditor can also collect this debt from you. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you or garnishing your wages.