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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?




It is most definately NOT better to let a private loan default. Once he defaults, the entire balance becomes due in full. Even if he gets set up on payments, they will sue.....this is how private loans operate.

He only working 3 nights? Cant he find another part time job???

Sub: #81 posted on Fri, 07/23/2010 - 16:52

SOAPLADY SOAPLADY
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I guess I'm wondering what they can get if they sue? No assets at all and at this point probably no tax refund either. And if he is head of household in FL and can't be garnished then what happens? Who brings the suit - the guaranty agency? The reason I felt that it seems better to default is because his credit is already in ruins and at least the guaranty agency said they would work with him whereas the lender would not. If you are set up with payments, why do they still sue?

Sub: #82 posted on Mon, 07/26/2010 - 18:14

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There may be no assets today. They looking to the future....future earnings, future assets.

The guarantey agency will sue even if payments are being made. Why? Because it protects their interests.

Sub: #83 posted on Mon, 07/26/2010 - 18:37

SOAPLADY SOAPLADY
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I don't understand what the suit is for, though. Do you just keep making payments and the judgement goes into effect if you miss a payment? I guess if my son knew this, he would just make sure everything (assets, accounts, etc.) were not in his name. As far as earnings, that's another matter. But, if he was earning money, he would pay on his own. You just can't pay if you don't have it. Right now it is a choice between being evicted or paying a bill. If he is evicted, he will lose his job as well.

And, again, isn't there a head of household exemption against garnishment in FL and isn't NH a state in which garnishment is extremely difficult? (Private loans).

Sub: #84 posted on Tue, 07/27/2010 - 04:56

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I would call 866-833-6398 they could get you a good deal and they don't charge a fee until the settlement is done.

Sub: #85 posted on Tue, 07/27/2010 - 10:02

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Please can some help me? I started a thread under Silly Aries. You guys I NEED help BAD! PLEASE read my thread and offer any advice you may have. Its a matter of survival at this point.

Sub: #86 posted on Tue, 07/27/2010 - 11:08

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Quote:
Originally Posted by SOAPLADY
It is most definately NOT better to let a private loan default. Once he defaults, the entire balance becomes due in full. Even if he gets set up on payments, they will sue.....this is how private loans operate.
He only working 3 nights? Cant he find another part time job???





Can you PLEASE help me! I BEG of you! I started a thread under Silly Aries in this forum. Will you please go there to see if you can offer me any advice. I'm all out of options and I dont know what else to do. Please help if you can and God bless!

Sub: #87 posted on Tue, 07/27/2010 - 11:10

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I'm cosigned on a fed student loan. The payer missed a few payments, which showed up as a 60 days past due black mark on my otherwise sterling credit. While the loan is now deferred, the credit harm is done and still on my record and affecting my ability to get a mortgage.

Can anyone recommend a means to clear that up? I assume fed agencies are not especially motivated to help clear this up. I'm actually open to sucking it up and just paying off the whole loan, if that would help. But since I'm not sure it would, I am holding on to that money for now...

Best wishes,
C

Sub: #88 posted on Tue, 07/27/2010 - 16:30

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Federal loans havent required cosignors for aboiut 20 years. Only the federal PLUS loan may require it. You sure it isnt a private loan?

Sub: #89 posted on Tue, 07/27/2010 - 16:53

SOAPLADY SOAPLADY
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Could be a PLUS, not sure -- it was graduate level and only a few years old. My credit report lists 'US Dept. of Ed.' as the creditor so I thought of it as federal. I can dig up the details if needed.

Sub: #90 posted on Tue, 07/27/2010 - 17:48

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