I'm looking for some advice on behalf of a 77 yr old woman living in washington state who was duped into co-signing for her rotten son's federal student loan about 4yrs ago. She didn't realize there was even loan until about 2 yrs ago when he missed a payment. The son lives in arizona and quit paying on the loan about 6 months ago and now Salie Mae is threatening imminent default on his mother and she is extremely upset and does not know what to do. The payments are about $250/mo.
She recieves: a pension of $1,250/mo; has a tax deferred retirement account which currently has $60,000 - from this she draws $300/mo; she owns a small house worth about $100,000. Thus, her total income equals $1,550/mo which covers her expenses with little left over. Without the money from her retirement account she couldn't afford to make ends meet.
She can not afford to take over the payments, and cannot afford an attorney. Is her pension, retirement account, or her home in jepordy?
Can all or a portion of the loan be dissmissed through a hardship claim?
Are there any options for her?
Any advise would be greatly appreciated!