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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?




I spoke to the loan company and they will not sue us but they will start garnishing wages. I was wondering if I could sue him myself after the loan amount is paid off?

Sub: #101 posted on Mon, 11/15/2010 - 07:57

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If this is a private loan, you would have to be sued first before any garnishment could happen. Only federal loans can garnish without taking you to court.

You should have has loan written into your divorce agreement that it was his responsiblity. Without that, you have no grounds to sue him.

Sub: #102 posted on Mon, 11/15/2010 - 08:16

SOAPLADY SOAPLADY
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I co-signed a private citibank student loan for my daughter, she was paying for like two years, but went into default when she lost her job. My daughter is now out of the country, the banks calls me like four to five times a day. I cannot afford to pay this loan back. I am so worried and don't know what to do. Could the bank garnish my wages, and what are the consequences i should expect. Should i call the bank back and actually speak to their representative. I am so afraid of could happen to me.

Sub: #103 posted on Mon, 11/22/2010 - 20:09

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As the cosignor, you are as legally responsible for the loan as your daughter. They can sue you (and her) and garnish your wages and levy your bank account plus lien any property.

Sub: #104 posted on Tue, 11/23/2010 - 04:21

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I co-signed a student loan for our son! His payment record has ruined my credit record. I am 66 years old and disabled. Is there anything I can do, short of dying?

Sub: #105 posted on Fri, 12/31/2010 - 09:18

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unfortunately not. When you cosigned for them you took on this liability.

Sub: #106 posted on Fri, 12/31/2010 - 15:52

SOAPLADY SOAPLADY
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I co-signed my son's student loans, and now it is back to me to pay since he is not able to make the payment. They want a stilment of $46,000 up front or a payment on a $95,000, either way, I cannot meet their demand, so now my credit is gone, how or where can I get help I am willing to make payment, but not on a 95,000, I can't aford that.:confused:

Sub: #107 posted on Sun, 01/02/2011 - 09:01

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There is no one or place you can turn to for assistance for private loans....these are student loans that function most like normal consumer loans. How much is owed?? Can you and your son together make the payment?

Sub: #108 posted on Sun, 01/02/2011 - 12:20

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i am 62 y o, cosigned for son's loans, he stopped paying, i've been paying for last 4 years. I'm now retiring, will not have money to pay, own no real estate, income will be social security and pension. can i be garnisheed or can my income sources be attached?

Sub: #109 posted on Wed, 01/05/2011 - 09:25

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Your creditors will not be able to garnish your social security income or your pension. However, if you've a savings account, then the creditor can garnish it. However, in order to do so, he will have to file a lawsuit against you and win a judgment.

Sub: #110 posted on Thu, 01/06/2011 - 01:18

Anna Sweeting Anna Sweeting

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