Private Student Loan Default Question(s)

If that one specific loan is kept out of default, they will not sue. However if you default, they will sue even when payments are being made.

Thank you! I want to make sure I understand you. If my father does pay the minimum payments for the one loan that he co-signed, he will not be sued. If I do not make any payments to the other loans though, the remaining loans will put me (and only me) into default?

Do I have any hope in bankruptcy? The only reason I haven't filed for bankruptcy is due to the fact that I can't afford an attorney. I'm debating representing myself, but practically all of my debt is student loan debt and history has shown that if more than 50% of your debt is student loans, they will immediately deny it to be included in bankruptcy. Therefore, I don't think I have much of a chance getting this included in the advocacy hearing and just the cost of simply filing for bankruptcy is $300.

It is not just the bankruptcy filing fee you would have to pay...there are additional costs for the special hearing that is held for student loans. Even then it is not likely they will be discharged. Plus you be required to include the one that your father cosigned on which will cause it to default.

Thank you. So basically I definitely have no option but to default. And as long as my dad pays the bill for the one loan under his name and continues to do so for the lifetime of the loan agreement, he will not be sued. Yes?

I, on the other hand, need to prepare for the worst.

just a little encouragement here. You are right, have your Dad pay on the one that he co-signed on and you will be Ok with that one. I have co-signed on my daughters and pay on those two. and we both are Ok with these two loans they do not bother us about them, and her credit is good in regards to them. The other 4 that she has, she defaulted on and those are the ones that are in default and they are garnishing her wages. She did this because she, like you, could not work with them, and make the payments they were demanding. (they are private loans, by the way) Anyway, the garnishment amount is far less than what she was going to have to pay as payments, so actually, she is quite satisfied with it. I am a real estate agent, and as far as her being able to buy a home, we dont worry. Owner terms, flexible financing is always there, so she isnt worried about getting into a house if she ever wants too. I do deals like this all the time for people that have bad credit because of student loans. She is going to let them garnish her for as long as it takes. She plans to save what she can, and maybe someday settle with them, or not. Not sure about that yet. Also, we are kinda doing the Dave Ramsey snowball plan, and these loans are included in it,,, so eventually, one by one, she may be able to get them paid off. She owes over $100,000 so its gonna take awhile, but she has a plan and it keeps her spirits up,,, which is the most important thing for you too.

Anyway, my point is,, dont stress. Its not as bad as you sometimes read on these boards. Its not your fault and what every happens will happen. Dont worry about something that hasnt happened yet. But, if garnishment is only option, it is, so no biggie, you will be just fine....