Co-signer attempt to pay on a defaulted student loan
Date: Wed, 11/28/2012 12:36
I am (unfortunately) a cosigner on a student loan that my son took out near the end of his doctorate program with a national education service. The debt (which now is about two third of the original $10,000) had now go into default. I realize I should have been paying more attention to this, but I am on it now.
I tried without success to talk to the education service about this-they say they no longer own the loan-the collection agency owns the loan. I spoke to the collection agency and they say the education service owns the loan. So apparently I can't get a straight answer.
I have offered to pay the balance on the loan (which is unsecured) plus late fees and a penalty fee. The agency refused my money, insisting they will collect an additional 25% of the total, bringing the loan to near the starting point. I am trying to be responsible here, but I just can't agree to this.
Do I have any options here? (Sorry for the length.)
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