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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?




debrag_25
Posts: 220
Credits: 3323.95

Sub: #1 There's a specific forum for Student Loans...try posting this qu
Sun, 11/02/2008 - 09:23

There's a specific forum for Student Loans...try posting this question there so that it'll get attention. I know Soaplady is around and she knows the deal when it comes to student loans.

First off ~ Are these federal or private loans? Has she had late payments so far?

Like I said..post these questions and answers over on the other forum ~ I'm sure you'll get the information you're looking for :)




SOAPLADY


Debt Samaritan
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Credits: 474368.58869987

Sub: #2 With a cosignor, these are more than likely private loans. If t
Sun, 11/02/2008 - 12:19

With a cosignor, these are more than likely private loans. If the niece defaults, it will go into collections and your both your dad and your niece will be sued. You might wanna suggest that your niece work a second job before this gets out of hand....she will not like what will happen if she defaults.




sdchargers_63
Debt Samaritan
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Sub: #3 debt
Sun, 11/02/2008 - 14:04

I never had anyone co-sign for my student loan. However....a friend of mine had her co-sign on hers. The Student Loan went into default. BOTH my friend and her dad were sued over it. They BOTH have to pay. Hope this information helps.




Unregistered

Sub: #4 Options for cosigner
Wed, 12/10/2008 - 19:12

My son has paid very little on his rather large loan since graduating 5 years ago. He has successfully deferred the loan numerous times but I have also receive letters from Sallie Mae when he does not pay. I am tired of these letters.

My son will come into a fairly large sum of prize money in a half year or so. He tells me he wants to use the money for other things rather than pay down his debt. What are my legal rights to force him touse the money to pay down his debt which accrues interest regularly. Can I put alien on the windfall?




SOAPLADY


Debt Samaritan
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Credits: 474368.58869987

Sub: #5 You son is an adult.....you have no legal rights whatsoever.
Wed, 12/10/2008 - 20:40

You son is an adult.....you have no legal rights whatsoever.

Did you cosign on loans with him?

You son will learn...eventually. One day he will want good credit.




drjonah
Debt Samaritan
Posts: 244
Credits: 5087.35

Sub: #6 if the loan defaults, couldn't the 'prize money' essentially be
Thu, 12/11/2008 - 00:42

if the loan defaults, couldn't the 'prize money' essentially be taken from him if sued?

apikuros, even though you have no legal rights on your son, you need to give him a swift kick of reality, get him to realize how much damage this is doing to YOU too. I learned very quickly how much damage I did to my co-signer by not paying on time. Now I have been on time for over a year.




SOAPLADY


Debt Samaritan
Posts: 17181
Credits: 474368.58869987

Sub: #7 I the loan defaults, mom or the lender would have to take son to
Thu, 12/11/2008 - 04:45

I the loan defaults, mom or the lender would have to take son to court and win a judgement before any moneys could be taken...that is provided there is any money left.




Unregistered

Sub: #8 I co-sign a boyfriend at the time to go to trade school.
Wed, 01/21/2009 - 18:45

I am more than angry because I co-sign for my ex-hubby in 2001 when we were not married to go to computer school. The student loan was defaulted in 2007 when I was separated with him. Now i am the only one they can get in contact with when they call. This is destroying my credit and he doesn't seem to care. What can I do legally to get my name off this sallie mae student loan? It's about 7,500 dollars and I have paid $1, 600 already into this debt. I can no longer pay them anymore please help.




SOAPLADY


Debt Samaritan
Posts: 17181
Credits: 474368.58869987

Sub: #9 Priceless....as the cosignor you are are just as liable for this
Wed, 01/21/2009 - 19:09

Priceless....as the cosignor you are are just as liable for this debt as your ex hubby. You cannot get your name removed. Your choice now is to hunker down and get it paid off or locate your ex and let the CA know how to find him.




Unregistered

Sub: #10 co signed student loan
Tue, 05/05/2009 - 16:57

my son will be divorcing his wife. they will be signing separation papers soon. (they live in n.c.). my son co signed for her son from a former marriage for him to get a student loan. now that things have split can my son get his name emoved as co signer.




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