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Defaulted Student Loan Co-Signer

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  • 02-17-2013, 03:53 PM
    emmalia
    Defaulted Student Loan Co-Signer
    My question involves collection proceedings in the State of: New York/Georgia
    I cosigned for a student loan about 5 years ago, maybe longer. The original loan has now gone into repayment status and the primary borrower assured me they were taking care of it and were in contact with the lender. The other day I got a phone call from an attorney stating the loan has defaulted in the amount of $65,000. I know when I had cosigned on this loan originally I was saying I would be responsible so please spare me the lecture I'm already kicking myself :wallbang: but I certainly don't remember agreeing to this much money. What, if any, kind of options do I have? I certainly don't have the money to repay this amount of money myself. Should I go speak to an attorney of my own and see what kind of options there are? If so, what kind of attorney do I need?
    Thank you
  • 02-17-2013, 09:51 PM
    johnb123
    Re: Defaulted Student Loan Co-Signer
    This is from Wells Fargo on student loans: In some cases a co-signer can be released from student loan responsibility. The student borrower can request that his or her co-signer be released once the student has made all of the first 24 consecutive monthly payments on time and meets certain credit requirements. Student borrower must be a U.S citizen to be eligible for co-signer release. In addition, a co-signer can be released in the event of the student beneficiary's death or a total and permanent disability.

    - - - Updated - - -

    This is from Sallie Mae: After graduation, the primary borrower may apply for co-signer release after making 12 consecutive monthly on-time principal and interest payments. Sallie Mae looks at the primary borrower's demonstrated success with other credit obligations (e.g., car payments, apartment rent or credit card) and reviews whether your friend has sufficient income to manage the payments. If the primary borrower meets the credit criteria, the co-signer is released from the loan obligation.
  • 02-18-2013, 10:24 AM
    Mr. Knowitall
    Re: Defaulted Student Loan Co-Signer
    When you contacted the borrower to ask about the default, the reasons for the default, and what they intended to to in relation to the default, what did you learn? Are they eligible for any sort of relief from the loan - such as a hardship deferral?

    Did you ask the lender to provide you with copies of the loans you guaranteed, and an accounting of the loan balances? You will want to be sure they're not attaching your name to loans you did not actually guarantee.

    What type of student loans are these?
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