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  1. #1
    Join Date
    Aug 2010
    Posts
    1

    Default Co Signed Private Student Loans on Verge of Default

    I am a current resident in the state of Vermont. My mother who also lives in VT. is the co signer. I am over thirty days past due on two of 3 loans equaling just under 80,000.00. I am between jobs but looking for one full time. I hope to be employed full time within the next few weeks. I will then be able to start making payments again but that, of course, isn't a good enough answer for the collectors. How much time do I have before the loan or collection agencies can actually take legal actions against me and go after my mom's home and/or income? I truly don't know what to do. I know that defaulting is terrible but the last thing in the world I want to have happen is for my parents home and income to be taken. I know my credit is already toast, like probably a 100, and I own nothing, and don't have a job, so I know they are going to go after her. I am just wondering how much time I have. The collectors who are calling are saying that if I don't pay soon the lender can ask for the full amount. Is that true? The thing is there's nothing my parents or I own that equals that sum, and that seems unreasonable and illogical. I am really trying here but I'm getting scared. I don't answer my phone because if I do, and I tell them I can't pay, they've told me that is considered a refusal to pay, and they can then start immediate actions against me and my mom. I've used all of my deferrment and forebearance, so I don't have those options. So it comes down to time. How much time do I have before they will put anything into action, do I have a few more weeks at least, or can they do something sooner? And is it the right thing to do to not answer the phone calls since I cannot pay an acceptable amount at this time? Please Help.

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Co Signed Private Student Loans on Verge of Default

    The collectors who are calling are saying that if I don't pay soon the lender can ask for the full amount. Is that true?
    Yes, it is.

    How much time do I have before they will put anything into action, do I have a few more weeks at least, or can they do something sooner?
    We can't tell you when or if they will begin other actions. They certainly can do so as soon as you're late, and may already have done so.

    And is it the right thing to do to not answer the phone calls since I cannot pay an acceptable amount at this time?
    No, you should answer the phone and continue to try to reach acceptable payment arrangements.
    I'm not a lawyer, but I play a researcher on the internet!
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  3. #3

    Default Re: Co Signed Private Student Loans on Verge of Default

    You said you're only 30 days or so past due. You probably won't be in default until you're around 180 days past due. The first thing you need to do is find your promissory notes and documentation of the terms and conditions of your loans. These will tell you at what point the loans will be in default. It's usually six months for private loans I think. Once it's in default, the entire amount will be due. They probably won't sue right away. In fact, most lawsuits involving student loans seem to occur months to years after default based on the cases that I've read. However, keep in mind that you have a cosigner, and because they can go after her and her assets, it makes you more of a low hanging fruit than someone who doesn't have anything.

    If you really are only 30 days past due, you probably have about 5 months before your loans default. You should try your hardest to find a job in that time so that you can start making payment arrangements before you default. Again, if you want reassurance on how much time you have, you'll be far better off finding your loan documents than asking any of us to speculate on the subject. If you have questions about the terms of your documents once you find them, let me know. Also, I am familiar with many of the private student loan companies. If you let us know which one it is that is going after you, I may be able to fill you in on what I know about them. Feel free to provide this info or send me a private message if you like.

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