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Student loan default impact on co-signer

Date: Sun, 11/02/2008 09:20

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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?

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Total Replies: 131

You wont be able to clear it up....if it was reporting correctly, the DOE wont remove it.

Sub: #91 posted on Tue, 07/27/2010 - 19:05

SOAPLADY
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It was reported correctly -- I trusted the borrower that they were clearing it up, but they apparently did not do so until too late. I should have understood the gravity of it all better, I've just never had credit problems so I was naive about the risks.

So in that case neither paying it off nor talking to CRAs can change things? That is very unfortunate. Thank you for the information.

Sub: #92 posted on Tue, 07/27/2010 - 20:29

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So, reading the above questions and answers, looks like I am in a very similar situation. I have cosigned for my mother and stepfather who have rarely made payments on their federal student loan. It has destroyed my credit and I wish to get rid of it soon. Is it true the only option is court? What is the limmit for small claims? It is about 10 thousand right now.

Sub: #93 posted on Sat, 07/31/2010 - 10:40

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Ok....what type of loan did you cosign on? The only federal loan which requires a cosignor is a PLUS loan.

Court is not an option. If you cosigned by your own free will, you took on that liablity as your own. You wont have any luck in court.

Sub: #94 posted on Sat, 07/31/2010 - 11:50

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I took out private loans and they say that they are cosigned by my son. I am now disabled and living on social security. My son is now out of school and not making enought money to cover this loan too. I have been going round and round with SallieMae asking for help with this situation. They will not work with me at all. I have no assets. I already had to file bankruptcy and have read on the internet about undue hardship reguarding student loans. I only get 807.00 a month and they want 613.00 a month. I need to live. Do you know of anything I can do?

Sub: #95 posted on Thu, 09/16/2010 - 06:10

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As with all private loans, Sallie Mae is under no obligation to assist or lower payments....this is just how private student loans work. If allowed to default, they will end up suing the both of you.

Sub: #96 posted on Thu, 09/16/2010 - 06:45

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I co-signed a $13,300 private student loan with my son. The balance is now $12,150. He refuses to pay. I am on Social security and pvivate pension. Can my income be garnished? San I sue hiim?

Sub: #97 posted on Sat, 11/13/2010 - 18:23

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I cosigned a pvt student loan with my son for $13,300. He refuses to pay back. I am on Social Security and some pension. Can AES garnish my income? Can I sue him? Would the bank leave me alone if I leave the country?

Sub: #98 posted on Sat, 11/13/2010 - 18:33

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They will endd up suing both of you. Your social security is exempt but your pension funds are not. Does he understand if they get a judgemnet they will garnish his wages?

Sub: #99 posted on Sat, 11/13/2010 - 20:10

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When me and my husband were married I cosigned on a student loan for him. We are now divorced and I have been paying on the loan and he hasn't. Can I turn around and sue him for the amount of the loan after the loan is payed off?

Sub: #100 posted on Mon, 11/15/2010 - 07:54

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