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  1. #1

    Default Suing for Defaulting Student Loan

    My question involves collection proceedings in the State of: ny

    I am a co-signer on a TERI student loan that is approaching default. The deadbeat I co signed for is over $1,000 in arrears and has not made a payment in over 250 days. I am likely going to have to start payments very soon.

    1) Can I sue him for the entire student loan balance (over $10k) with the expectation he is not going to pay or can I only sue for the amount owed in arrears?

    2) Also, as he has moved and gone underground (though responds to email) what are the limitations imposed on me if I act like a collection agent and try and track him down so he can be served. For example contacting his family, employers, former faculty, neighbors etc...

    2)a. As long as I am respectful, don't harass, and tell the truth, can I tell people why I'm looking for this person?

    Thanks in advance. This is a great web site!

  2. #2
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    Default Re: Suing for Defaulting Student Loan

    You can only sue for your damages, so unless you pay off the entire loan you cannot sue him for the balance. And even then you may face issues, as you don't have to pay off the balance.

    You're not a collection agency, so laws such as the FDCPA don't apply to you. But keep this in mind: If you disclose more information than you need to, the people you contact may get a poor and lasting impression of you.

  3. #3

    Default Re: Suing for Defaulting Student Loan

    Thanks for your reply. But I'm not sure what you mean when I say I don't have to pay the loan. I am a cosigner (3rd party) on the loan and while my obligation is subordinated to the primary, I still have an enforceable obligation.

    In short, I can get sued. That seems as close to an obligation as I am aware.

  4. #4
    Join Date
    Jul 2008
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    spokane, WA
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    Default Re: Suing for Defaulting Student Loan

    I have a similar problem. I cosigned my now-ex-husband's third year of law school and a bar loan with the thought that he'd become a an attorney and we'd pay the loan off. Instead, he became an attorney, cheated on me and got himself a fiancee and planned a wedding before I figured it out ("honey, I have volunteer lawyers tonight").

    So, in the divorce papers he agreed to take responsibility for his loans. He is now $2600 in arrears on the school loan and the bar loan wants the whole $9k because he's so far behind.

    I got him to make one payment on each loan last month when I threatened to file a complaint on him with the WSBA. Now he's dropped off the face of the earth.

    My questions are:
    1. Can I get him disbarred? The WSBA website says they don't want to hear about personal stuff, but this is beyond personal. It's a legal obligation he made and as an attorney he should know better.

    2. Can I sue him for credit damage? Because my once-perfect credit is shot and I will never be able to buy a house or move to another apt. or get another job because everything revolves around credit checks.

    3. If I die, can the loan companies come after my parents?

    4. If he dies (he's extremely obese and both his parents died from heart attacks) will the loan companies work with me to get the loans down to a reasonable amount?

    I didn't go to law school and I will never make enough to cover his school loans. I have my own school loans to pay off. He lied about his situation to get me to cosign--I knew his parents were dead, but then he told everyone his brother died and gave me this sob-story about how he didn't have anyone else. Well, turned out his brother isn't dead, but I only found that out recently.

    It is amazing how one little signature can ruin your life.

  5. #5

    Default Re: Suing for Defaulting Student Loan

    Quote Quoting Mr. Knowitall
    View Post
    You can only sue for your damages, so unless you pay off the entire loan you cannot sue him for the balance. And even then you may face issues, as you don't have to pay off the balance.

    You're not a collection agency, so laws such as the FDCPA don't apply to you. But keep this in mind: If you disclose more information than you need to, the people you contact may get a poor and lasting impression of you.
    He can sue the deadbeat for the entire amount, not just arrears. The co signer is 100% liable and DOES have to pay off the balance.

    Sue for the full amount, including any default/collection charges, whatever you are liable for.

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