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Co-Signer Student Loan Wage Garnishment

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  • 04-13-2010, 03:14 PM
    Cosigner
    Co-Signer Student Loan Wage Garnishment
    My question involves collection proceedings in the State of: California

    I co-signed a student loan from Sallie-Mae for my step brother after I was out of College. The loan amount at the time I thought was 6g turns out to be 10 thousands. He deferred his loan for over 2 years even though he had a job and he stop making payments on his student loans and now its in default where they are sueing and not accpting monthly payements anymore. He has a steady job but just gambles all his money away. I got a called from a collections agency the other day told me w/ interest I'm responsible for 13 thousand out of 50 thousands that he owes. They've offered to settle my part of it and take my name off of the loan if I pay a little over 6 thousand by a certain date. They are planning to send this to their legal department and sue. The other cosginer for the rest of the amount is his mom. They are planning to sue all 3. He doesn't have any assets but has a steady job so they will probably just garnish his wage.

    My question is this........Will they garnish my wage and his mom wage also? Should i just pay the 6 thousand and settle? I really dont' have the money but I can burrow some from friends and sell my stocks to cover this amount. And how do i gurantee that they will take my name off the loan if I make this payment. I spoke to my step-brother and he says he'll pay me monthly if i settle but i doubt him, he's a gambler and liar so I can get a few bucks outta him but that's about it. I guess the only way to guarantee it is to get a lawyer but I cannot afford a lawyer and pay that amount to settle. I've asked for something in writing and they are mailing it to me now. what should i do. should i just wait it out and hopefully they don' t garnish my wage or just settle and bite the bullet. And if I have to pay this 6g how can i gurantee that they will take my name off that loan.

    Thanks in Advance for the help.
  • 04-15-2010, 09:34 PM
    Mr. Knowitall
    Re: Co-Signer Student Loan Wage Garnishment
    If they get a judgment against you, they may well try to garnish your wages if it's not paid off. The same applies if they get a judgment against his mother. Have you talked to his mother about the situation? Is the creditor hoping to get $6,000 from each of you, or might they release you both for a combined payment of $6,000? You would want a written release of any further liability for the loan, in association with any payment you make.
  • 04-15-2010, 11:26 PM
    Cosigner
    Re: Co-Signer Student Loan Wage Garnishment
    ok so i need to get a written release of liability of the loan. I've spoken to his mother and they call her also saying if she comes up w/ 8g they would release her of the loan also. His mother is a waitress and he's been tricking her for years having her burrow money just for his gambling debts so theres no way she has the money to even pay her part of it. And of course he can do no wrong and has a close ear and even gets offended if I try to tell her how bad her son it. So I should just go ahead and pay the loan right mr knowitall since I can already see that he will not change and obviously doesn't care about his mother or his stepbrother even though i've warn him numerous times about his student loans
  • 04-16-2010, 10:59 AM
    Cosigner
    Re: Co-Signer Student Loan Wage Garnishment
    oh yeah one more thing so i just wait for a judgment against me and then try to negotiate or just take care of it now? I have my own students loans to pay and this just pisses me off that i'm also responsible for my brothers.
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