Student Loan Cosigned By Grandmother

[katherine douglas]

Mississippi.: My daughter has accumulated a significant amount non federal student loan debt. My mother is the cosigner. My daughter is unable to pay the loan amounts and the lending company refuses to consolidate the amounts or work with her in any way.. She wants to file bankruptcy and my mother is very upset I'm not sure if bankruptcy is an option.

She borrowed the money for college. Her father and I have been divorced for many years.. I was unable to help her and he refused. Please be so kind to give advice and point us in the right direction.

[aaron]

Your daughter is unable to work because of what? She may qualify for a deferment if she has a legitimate reason for not working.

[jk]

I can see why g-ma would be upset. If the loans are discharged via a bankruptcy, g-ma is still on the hook, all by herself.

ain't that a slap in the face.

I was unable to help her

Does this mean you are now able to help her? If you borrowed the money to consolidate the loans, possibly with the kid as cosigner, or even vice versa, it would take g-ma off the hook.

[katherine douglas]

Dear Aaron,

I am sorry if I led you to believe that she does not work. She is a licensed practical nurse. However, she owes near 40,000 and monthy payments of 800.00 does not leave her with enough money for utilities, rent and cost of living expenses. She has attempted to consolidate same; however, the lender told her that was not an option.

[aaron]

$40,000 to be paid off over ten years with an interest rate of 20% translates into monthly payments of $773.02. Even assuming such a short term and extraordinary interest rate, it should be quite feasible to find a third party lender who would provide a payoff amount on much more favorable terms, particularly if the loan can be secured against real estate (hers, yours or grandma's). At 7% interest, payoff drops to 464.43 per month over ten years, or 310.12 per month over twenty.

[katherine douglas]

Dear Sir/Madam: I appreciate your response; however, you are not aware of my situation nor the lengths I have gone to correct this matter. I am earnestly trying to help my daugther and my mother by seeking advise from someone who may actually have something to offer.

[katherine douglas]

Dear Aaron,

Thank you for your help. All 3 of us live on my brother's land and he would not let us use it as collateral. I have a total of .98 acre that is in my name and have considerable debt of my own. My mother is 75 and in poor health.
(I know this sounds like a sad song)! I am beginning to feel sorry myself all over again God Bless!

[jk]

Dear Sir/Madam: I appreciate your response; however, you are not aware of my situation nor the lengths I have gone to correct this matter. I am earnestly trying to help my daugther and my mother by seeking advise from someone who may actually have something to offer.

what is wrong with what I suggested?

You stated you were not able to help prior. Just suggesting something if you are able to help now. You also state "the lender". That infers you have only talked to the current creditor. There are dozens of banks out there. Also, unless there is a lein on your property, that could be levied against the loan. It would make it a bit safer for a lender and hopefully help you help your daughter.

and you are right. I do not know your situation, I only know what you have posted. Not my fault.

[katherine douglas]

Dear JK:

I must apologize for my earlier behavior! Ain't that a slap in the face!

Thank you for your suggestions, God Bless.