Co-Signer of Student Loan
I'm a California resident.
A student asked me to be his guarantor of a "back up" student loan. He lied to me that:
1. he only needs to borrow about $8K (and he actually borrowed $50K);
2. he would not borrow the money if he gets RA stipend from graduate school (he actually planned to borrow the money and he has borrowed cash from other sources and he tried to get more loans from different banks);
3. he asked me to be guarantor but actually he's applying the loan and put me as co-signer;
4. after obtaining my personal info, he sent out the application on computer without letting me read any details.
I was not aware it's a fraud until i found out later that he actually borrowed so much money and he borrowed even more from other sources. It's most likely he'll defaut the loans.
Please advise how do I prevent of being liable of the loan when he defaults.
thanks
Re: Co-Signer of Student Loan
What document did you sign that allowed him to borrow $50K with you as a guarantor? Were you simply not paying attention to what you were signing?
Re: Co-Signer of Student Loan
I didn't actually sign anything. He just got some of my information and sent the application online (on his computer). So I didn't even see the application at all. After he sent out the application, he asked me to fax copies of my pay stub, green card, and driver license to the bank and I did that.
I didn't realize he actually borrowed so much money until i see this loan shows on my credit report. I was not aware that I became his co-signer instead of Guarantor. He never mentioned the word "co-signer" and I've never seen any paper work with this word either.
tks