Defaulted Loan

As a cosignor, you are authorized...you signed on the bottom line. Unfortuantely, you should have started making the payments a long time ago...or at least put the money away. This loan would have defaulted more than likely within a year of your husband seperating from school. Now with the default, they will want payment in full on demand or huge payments. Is your mother in law aware that all parties will end up be sued??

We wanted to pay the loan but the company refused to give us the information. Once they found out it was my husband calling and not his mother, they hung up on us. They absolutely refused to help us. We don't even know the account numbers or how big the loan has become.

My mother-in-law, when informing us about the default asked us what happens when that happens. Obviously, she doesn't know or care about the situation. But I'm not here to bash her personality flaws.

If the loan defaulted so soon after he left school, why has no one ever contacted us? My husband has his own loans in his name only from the same company that we're currently paying. If they already have his information, why are they not contacting us about this loan if he's a cosigner?

We have a plan to pay. We just want a time frame as to when we'll finally be authorized to pay for it. We're hoping that we'll be able to negotiate payments but we understand if that isn't possible because of the extreme lateness of this situation.

We really would like to know if this default will finally make us authorized to pay the loan and if someone will finally contact us concerning the payments.

Hi,

This is quite absurd a situation. Generally, the lenders will try and collect money from the co-signer but in your case the lender is simply refusing to share any information:eek::shock:. What kind of student loan is this? Is it a federal student loan or a private student loan? At least try to get this information. For, if it???s a private one, in all probability the Statute of Limitations on this loan has expired.

Thanks,

Marvel Becks

Private loans as a general rule do not let SOL's expire without suing.

AES is a division of PHEAA.... read the contact page and start working your way up the ladder. http://www.aessuccess.org/about/index.shtml

I agree that the situation is completely absurd.

Maybe he wasn't a cosigner? Is there another name for someone putting their name on the loan if it isn't a cosigner? Is it even possible to get a name on a loan who isn't either the primary or cosigner?

Another odd thing, we get our credit reports every year. This loan has never shown up on my husband's credit report. If he were a cosigner, shouldn't it show up? (It would have made it much easier on us if it did, we'd at least have the account number probably.) Does this mean he didn't cosign? Is it possible for this loan to suddenly show up on his credit report after years and years of not being there?

I'm not sure what kind of loan it is. His mother has never kept any paperwork regarding the loan. We're also in a different state now so simply driving to her house and picking through her garbage isn't an option for us.

If my husband is a cosigner should we start looking into hiring an attorney if we get a summons? I have a feeling his mother won't get serious until everyone is summoned to court. We'd much rather be prepared if we were summoned and told that we need to pay the loan in full (it's probably worth as much as a new car at this point).

I don't know what our next step is since the company and his mother have refused to help us in the past. I suppose I could just start emailing people at AES but I'm not sure how far I'll get without an account number.

I also really appreciate the help you've been giving us considering we haven't found much help in the past.

Could this have been a Plus loan? The student has to sign the docs but only the parent is responsible for the repayment. Plus loans are federal.

Does your spouse remember signing any checks other than what came directly from the school?

I asked my husband if he remembered what kind of loan it was and he said it was indeed a Parent Plus loan!

This explains so much to us:
(1) Why we could never get the loan into our name.
(2) Why the company wouldn't talk to us about the loan.
(3) Why his mother said she could get it 'forgiven' if she got paperwork filled out telling the company she was permanently disabled (she never did get this finished, by the way).
(4) Why the loan has never shown up on his credit report.

So either his mother was mistaken when she said he co-signed or lied to us to try to pass the buck to us or was told that my husband co-signed it when he didn't.

Now we need assurance: Does this mean we are not LEGALLY required to pay the loan?

PLUS loan stands for Parental Loan for Undergrad Students.....it is taken out solely by the parent for the student. The student signs the prom note certifying they are a student....that is it.

It is very unlikely his mom will get this cancelled...you basically have to have one foot in the grave nowadays to qualify for any disability cancellation. If the condition existed before she borrowed, it cannot be cancelled for that reason.

FYI...they will be garnishing her tax returns and any federal payments including SSI and DSSI.