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  1. #1

    Default What Are a Cosigner's Options After Student Loan Default

    My question involves collection proceedings in the State of: Colorado
    In 2003 I had a lapse in judgment and cosigned on student loans for my now ex boyfriend. We broke up sometime in 2004.

    In 2005 when these went into repayment, Sallie Mae would not contact me until they were three months delinquent. At that time, I still had contact with my ex and all but forced him to pay the fees to put them in forbearance. Rinse and repeat that scenario (including the 3 months delinquency before Sallie Mae would bother to send me a letter) a second time. The third time they went into 3 month delinquency, I no longer had contact with the ex.

    At that time I was told by Sallie May that the only way to remove myself as cosigner was to pay on time for 2 years. So I set the account up with automatic withdrawal from my account and paid. I was told my only recourse for the money spent would be to pay them off and sue him later.

    Two years later, I call Sallie Mae. "Oh, your account has previously been delinquent, so you're denied from being removed - ever." A fact that the rep's at Sallie Mae should have known in 2006, since they decided not to contact me for 3 months at a time, each time a payment was missed. So, in order to keep my credit rating afloat, I have continued to pay. Despite the NUMEROUS requests to have Sallie Mae copy me on any/all correspondence and payment statements, I have yet to receive any. I receive maybe one letter a year from them, usually a note saying "don't forget to claim the interest on your taxes." (oh to have the ability to even do that...)

    I'm at approx. $12k, with another $13k to go - since I'm working off his crappy interest rates.

    I noticed just today that the auto-withdraw did not come through for May 1st. To my utter shock (and I think you could hear my jaw hit the table) when I called today and spoke with Sallie Mae, I was told that the reason that my auto-deduct did not process for May, was because the ex had CALLED AND CANCELLED IT! I received no email, no letter, and no phone call that this had happened. And of course, when he had the brilliant idea to cancel it, he had not made any payment...so now the account is 15 days delinquent again.

    I have found his phone number via search. I have found his address through a hunt of past friends.

    I know that I can sue him for the amount paid already, and pray that I'm able to collect. I know that if I strap myself I can pay these off and sue him for the full amount, again, hoping I can collect.

    What I don't know is if I have any other legal recourse to get my name off the loans - since obviously he's decided to force the accounts into non-payment and Sallie Mae can't seem to provide me any timely information on the accounts?

    I am wondering, based on the date on which he cancelled my payment, if HE has been claiming the interest paid on the accounts (since they're under his SSN) on his taxes when he is not paying them. Am I able to obtain any recourse for this? Or get him in trouble with the IRS for fraudulently claiming interest he has not actually been paying?

    Finally, the ex is now married (poor woman). If I am able to sue and win for the amount of the account, if he is not working - am I able to garnish marital assets?

  2. #2
    Join Date
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    Default Re: Ex or Sallie Mae - Which is Worse in Student Loan Cosign Debt

    Why did your ex cancel your auto-payment of his bill? What's the upside for him?

    If you want him to repay the money he owes to you to date, sue him for it. I can't promise that he'll be any more diligent about paying you, though, than he has been about paying the lender.

    You can't garnish his wife's income or her assets. For non-exempt joint assets you can garnish his share; for bank accounts, joint account holders are presumed to control all of the funds in the account.

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