Share post
Debt Consolidation Forums Student Loans and Education Debt forums

Student loan default impact on co-signer

member profile picture
Posts: 1
Credits: 0
[Donate]

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?




Unless he is sucessful in consolidating you probably wont be able to get your name off. Consolidations are very difficult to come by for private loans.

Unless you actually cosigned for the subsequent loans, you are NOT liable for them. Argue that will sallie mae.

Sub: #51 posted on Tue, 03/30/2010 - 12:32

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

So, please correct me if I am wrong. I have read this whole thread. If a co-signed loan goes into default, to the point of being sued..both cosigner and borrower will end up paying?

Sub: #52 posted on Fri, 04/16/2010 - 09:11

dental0828 dental0828

(Posts: 82 | Credits: )

Correct.....both carry the same liablity on the loan.

Sub: #53 posted on Fri, 04/16/2010 - 11:42

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

Even Plus Loans?

Sub: #54 posted on Sun, 04/18/2010 - 06:37

dental0828 dental0828

(Posts: 82 | Credits: )

Plus Loans are loans taken out by the parent for the student. The student is not a cosignor. PLUS loans are federal loans so they never go away.

Sub: #55 posted on Sun, 04/18/2010 - 06:41

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

I know that they never go away...but as posted earlier..if goes into default to the point of being sued. Is both cosigner and borrower liable?

Sub: #56 posted on Sun, 04/18/2010 - 06:44

dental0828 dental0828

(Posts: 82 | Credits: )

The borrower is the parent. Is there another cosignor on it?

Federal loans generally dont sue...they utilize administrative wage garnishment which does not require a court order and tax offset/federal payment offset including SSI and DSSI.

Sub: #57 posted on Sun, 04/18/2010 - 06:50

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

Thank you. Could we look into Chapter 13? Looking for options for repayment. We have in forebearance til end of August to give us time to figure things out. We can't afford this loan and don't know what were gonna do for repayment since his daughter refuses to pay.

Sub: #58 posted on Sun, 04/18/2010 - 06:56

dental0828 dental0828

(Posts: 82 | Credits: )

This is not your daughters loan....she has no liability. This is your loan.

You could to chapter 13 but it is only a temporary stop gap. As soon as the chapter 13 is over, the remainder of the loan becomes due with all accrued and capitalized interest. It will also cause the loan to default.

Sub: #59 posted on Sun, 04/18/2010 - 07:13

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

We'll figure it out. My husbands parents wrote her out of their will and are willing to give us the money she 'would' of got to pay it off. We are considering it. So we have options....Thats the price you pay when your not responsible. We shall see.........

Sub: #60 posted on Wed, 04/21/2010 - 08:14

dental0828 dental0828

(Posts: 82 | Credits: )


Page loaded in 0.973 seconds.