Legal Question in Credit and Debt Law in North Carolina

If the primary borrower was making the payments, then Sallie Mae would not be threatening. And what are they saying? Telling somone you will pursue legal action is not a threat if you are lawfully permitted to do that. Also, how could you be a co-borrower on a student loan? Do you mean co-signer?

There is more here to the story than revealed in your post. Student lenders have more rights than the average creditor. They can garnish wages and the debts are not dischargeable in bankruptcy, absent special circumstances. You can try seeing an attorney who is more familar with these types of arrangements and allow him or her to review the paperwork or you can try re-posting here with the real details of what is going on.

And how do you know in fact that the primary borrower has already made "payment arrangements?" Obviously the primary borrower has not paid as he/she agreed or else the lender would not be calling you. If you signed the papers, whether as co-signer or a "co-borrower" then you are equally liable for the debt.