Can an individual obligated on a guaranteed loan be released from liability if their loan is not paid in full?

In the context of guaranteed loans, the individual obligated on the loan remains liable for the repayment regardless of the loan's status unless specific conditions are met that would warrant a release. Typically, a borrower is not released from liability on a guaranteed loan simply because the loan is not fully paid. The obligation to repay continues even if circumstances change, such as the property being foreclosed, unless the lender specifically agrees to release the borrower.

The options that suggest scenarios for release, like finding a replacement borrower or depending on the lender's discretion, do not reflect the standard policy regarding liability on guaranteed loans. The lender's discretion may come into play in specific cases, but it does not guarantee a release from liability. Therefore, the implication that an individual can be released from liability without the loan being paid in full is inaccurate, confirming that the statement is indeed false.