On the worker's payday, they cash the check for the full amount of the loan and fees. (vox.com)
However, the cosigner should be aware that he or she will be liable for the full amount of the loans if the applicant is unable to pay. (studentloans.net)
If your bank has exhausted all avenues for recovering the debt but still has not recovered the full amount of the loan, they can make a claim to the Small Business Administration against the guarantee the administration put on the loan. (valuepenguin.com)