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Student loan default impact on co-signer

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My 80 yr old dad co-signed about $50k of student loans for my niece. She graduated and got a job but says she can't repay. My parents get soc security and have some retirement income from my dad's job. they no way have or will have the money to repay this loan if my niece defaults. What happens?




Nope. Cosigning for the stepson really had nothing to do with his marriage....anyone can cosign. Also since the step son is not party to the marriage, it cannot even be court ordered in the divorce decree.

Sub: #11 posted on Tue, 05/05/2009 - 17:03

SOAPLADY SOAPLADY
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If your wife secretly co-signs on a large loan for someone and the person defaults on the loan. can the lender go after your house that is jointly owned by the both of you if your wife is unable to pay

Sub: #12 posted on Tue, 05/12/2009 - 05:35

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If a judgement is filed against your wife, it will affect the house. A lien will be placed on it.

Sub: #13 posted on Tue, 05/12/2009 - 06:05

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The co-signer always gets screwed if the person they co-signed with does not make payments. That's why it is never a good idea to cosign a loan no matter who it's for, friends, family, whatever. They can come after any co-signer as well as the co-signer's property and income (houses, income). I think they may even be able to go after social security, too, but I'm not sure about that.

Sub: #14 posted on Tue, 05/12/2009 - 09:28

regbyandjulie regbyandjulie

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If as cosigner I pay off the student loan for a relative who refuses to pay can I sue and possibly get a judgment against the individual?

Sub: #15 posted on Sun, 06/07/2009 - 10:33

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Most likely not. You voluntarily took on the cosignor responsiblity.

Sub: #16 posted on Sun, 06/07/2009 - 12:54

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I co-signed on a student loan for my niece with Salliemae in 2003 and Wells Fargo in 2004. Since my niece graduated she has refused to pay the loans. She let Well Fargo go into default. Her mother finally paid off Salliemae and I made an agreement to pay Wells Fargo ( in Default) but not the full amount owed. Wells Fargo agreed to the amount. My question to anyone is does this affect my credit score negatively because I did not pay the full amount? My credit was already affected by the loan going into default. Also if I can be a help to anyone out there, please do not co-sign. I did not think that my niece nor my own sister would leave me to pay these loans on my own. Yes my sister paid the Salliemae loan, but it took her 3 years to agree to it. Total cost of these loans (34,000). I did take my niece to court and won for the payments that I had made, however it is not an automatic payment. You have to submit more paperwork to have her pay, monies, etc garnished.

Sub: #17 posted on Sat, 07/25/2009 - 16:23

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Making payments on a default will do nothing to help your credit....the status will remain as defaulted.

Sub: #18 posted on Sat, 07/25/2009 - 16:28

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My sister asked me to co-sign for my niece to go to school. The original note was for $5K. I agreed but never received any paperwork. She said she did it electronically. Well they are late on payments and I have received a bill that shows the loan was for $8k. I never signed anything, what can I do?

Sub: #19 posted on Tue, 07/28/2009 - 10:09

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The loan was probably for $5000 but it starts accruing interest on day one and generally the interest is higher than federal loans. So more than likely the difference is interest and late fees.

Sub: #20 posted on Tue, 07/28/2009 - 10:19

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