B. Upon receiving notice of any claim, demand, action or suit or other legal proceeding alleging facts inconsistent with or contrary to any of the warranties or representations, Expert Subjects, LLC shall have the right to withhold any sums payable to the Author or Author's Representative as security for the payment of the Author's potential obligations. (expertsubjects.com)
Refinancing will mean that the co-signer, most likely your parents, is relieved from their potential obligation. (cedaredlending.com)
A positive effect on your co-signer's credit score will come about if you pay off the loan as a part of the consolidation and have the account closed and notated as «paid in full» on the credit report will see the benefit on their credit as that obligation (or potential obligation) is removed from their credit report. (nodebttoday.com)