I am a co-signer (I know...I know) on a private student loan for my son. He is unable to pay the loan. I was laid off from my job of 25 years in 2009. I have not been able to find a job in my field since (I'm 62...does that give you a clue?). I received a letter from Allied Interstate, a collection company, stating that Sallie Mae has offered to release me as the co-signer for a sum of $13,272. They state the balance of the loan at $33,181, on an original amount of $20K. My question is: it says they will report to the three major credit agencies that the co-signer/co-borrower's default will be updated as "co-signer/co-borrower obligation termed". I've never heard that term before. What does it mean and will it actually do something positive for my credit scores? Does this still leave the loan balance at the $33K figure as far as my son is concerned? Where did they get the $13K amount? I have not called them yet but will after I find out what this means. :confused:
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.