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helpfulson · Posted: Thu Jan 24, 2008 4:45 am Subject: Co-Signed Student Loans

I decided to try to help my step father out and co-sign his student loans. At the time he was working in a very good job and could afford the payments when they started to occur. But of course with my luck, he was laid off and to this day is still trying to recover from the financial loss he gained from being laid off.

I co-signed three student loans for him, two unsecured loans from COLLEGIATE FUNDING/GLELSI and one student loan from NATIONAL COLLEGIATE TRUST (I am getting the names from my credit report, don't know if that's the actual names of the companies.)

I have come to the realization that the only way I am going to fix my credit is to assist him with the payments of the student loans, but even with our income combined we can't afford the total payments of all the loans as well as all our other bills.

Combined, the loans come out to a total of approx. $68,000 with monthly payments being approx. $750. Does anyone have any tips on what routes we can take in order to rid us of our problem?

Any help would be greatly appreciated. Thanks!

Posted: Thu Jan 24, 2008 7:48 am Subject:

This is why private student loans are dangerous...they have no deferment periods and little to no provisions for hardship. Options?? Other than paying you wont get rid of the problem. Have either of you talked to the lender to see if you can get lower payments?? They might offer you lower payments for a short period...each lender will vary.

helpfulson · Posted: Fri Jan 25, 2008 5:19 am Subject:

I figured as much, thought I would try to see if I was able to luck out. I'll try to give them a call and see what they can do for us. Thanks for your response!

Posted: Fri Feb 15, 2008 3:30 am Subject:

hi helpfulson! your effort to help your step father is indeed very commendable! yes, talk to them for lower payments. and tell them that you are willing to pay them back, but you just need some time. if they are not willing to listen, then tell them you are filing for bankruptcy and they won't get anything then! i guess once you tell them this they will come around. what ever you do, DO NOT go on to take another loan to repay this existing loan as this will add to your burden further if you are not able to pay up on time. good luck!