Need help, cosigned on a Key Bank Student Loan

Student loans including private loans are non dischargeable in bankruptcy. However during the stay period they may still continue to call you since you are the cosigner and are not included in the BK. There is a possiblity that they might not. Hard to say.

Being cosigner, you have the same legal obligation as your boyfriend. Private student loans are expensive and they do actively sue...so either or both of you could end up with judgements against you.


You are not likely to get a lower payment. I looked at Key Banks site and the lowest interest rate available is 9.22% and that would put your interest each month at around $700 per month. Honestly, you need to find additional income to cover this...it will not go away!

No true as of 2007 private loans are actually dichargeable under bankruptcy due largely to the efforts of Senator Joe Bidon!!

[WASHINGTON, D.C.] ???????? U.S. Senator Dick Durbin (D-IL) today introduced legislation that will allow private student loans to be discharged after a borrower files for bankruptcy. Under changes made to the bankruptcy code in 2005, private student loans were given the same preferred treatment as government-guaranteed student loans. Currently, both government-guaranteed loans and private student loans are not dischargeable except under very extreme circumstances. This can place a tremendous burden on student borrowers with private loans.

Legistation was introduced but has never been passed.

Personally I believe making them dischargable is a bad move. A lot of lenders already have left the private loan lending industry...making them dischargable will be the last nail in the coffin. Individuals are borrowing these loans of there own free will, they are not being forced upon anyone. Too many students going to expensive private colleges are borrowing them with considering the consequences.

Loan companies PREY on the naivete of youth. I am a victim. I co-signed, albeit STUPIDLY, at the age of 23, with a friend for a student loan. I am now being held responsible for it 12 years later. It has destroyed my life. All I can recommend is to NEVER co-sign for ANYONE, EVER for ANY REASON!! It should be the responsibility of the loan company, bank, etc. to fully research the individuals applying for a loan. I was in no situation to co-sign at the time, and should not have been approved. If anyone has any suggestions on how I can get relief from my situation, let me know. Thank you.

Wow.....talk about misplaced blame.?? Loan companies dont prey on anyone....nobody forces people to borrow. Nobody forced you to co-sign.?? No terms where hidden from you...they are all there in the prom note.???? You met the criteria for a cosignor based on your credit.?? Take your anger out on the borrower who is obviously not paying on the loan.

Soaplady you are wrong on this!!! I consolidated loans with Salliemae, sent in my paystub and still got approved with my monthly payment being higher than what I make in a month. Thats my fault with a HUGE fault on the lender!!!!!! I no way met criteria. Your negativity makes me mad. You were in the business is what I read. good for you but your not dealing with any of the problems that we are so you can't relate. AND...private student loans should go directly to the school and they should not send a check to yourself. If you are human and young and in college and get a 25000 check to you, think of how many people don't even use it for school. THINK ABOUT IT

And whose fault is it you borrowed so much in private loans? The lender approved and dispursed what you were eligible for. I would assume you attended an institution of higher learning which means you are an adult. Loans come with responsibility and obviously you abused the money. It is really no difference then people buying a house or a car they obviously cannot afford.

Yes I can relate very well. I went to school and borrowed for my education. 2 degrees. However I busted my hiney paying off the loans for 4 years....worked 2 full time jobs. No car, no vacations and they were all paid off in 6 years total.

AGAIN,

I do take fault in my actions, however, the lenders have to start taking some also. This is why so many people are in these binds and why so many lenders have put lending private loans on a hault. There is no way I should have ever got approved for these loans. I was 18 19 20 years old with a part time waiter job getting approved ON MY OWN with no cosigner for 30-40k a year. I made 100 dollars a week. Wake up and smell the coffee. I wish they did not approve me so I could find other means of education. community college? AND i work my a$$ off now and still don't make what my monthly payment is. That is a problem with lending and is the reason why 90% stopped lending. WAKE UP!!!!!!

Yeah, and you were supppose to be using the funds to get a job so you could pay it back....that is the concept of student loans. Lending was not based on what you were earning at the time....they expected you graduate and earn. Obviously you were going to an expensive school.

Stop for a second and please read what your typing. Lenders are giving young immature students money at an extremely high rate HOPING you get a good job and can pay them back? Do you see anything wrong with that???????????????/

Young immature students are adults...they are attending institutions of higher learning....which means they have a brain to think with and would know how to add, subtract and mulitple...and ask questions. Ignorance is no defense in the eyes of the law.

I was reading all the comments..i went to psu for 5 years, my father co-signed on my loans...when i graduated I thought I would be able to find a job in the major i picked when i was at school...im nowhere working in the major that i went to school for..i have used up all my options of prolonging payin my loans. i understand that when a co-signer signs a loan that puts the burden on them in case i cant make the payments..and its unfair..i been trying everything i can to make sure this doesnt hurt my dad credit which is A-1. Im looking for a second job, it just sucks that to try and get a good education to further your life is soo costly. i unerstand where you both are coming from. but sometimes..people get these loans hoping they can get a good paying job to pay the money back and it doesnt end up that way. i work at a billing company for emergency room doctors the pay isnt that great...soaplady i feel u..gotta do everything possible to pay the loans back..its not easy, Lord I know its not easy

never cosign for a student loan through key bank, I cosigned a $10.000 student loan 7 years ago. The kid has benn paying $110.00 per month. After 7 years the balance due is over $12.000.

That has nothing to do with the bank, but the interest rate that is being charged, and how long the loan was in deferment. I did a rough calculation base on a $10k loan at 10% interest. Payment would be $135 a month for 10 years. If he left it in deferment for 3 or 4 years, he would have accrued $3000=$4000 in interest before he started making payments.

My son got a 12k loan quicked with this bank. He put my name and ssn as co-signer, but under co-signer signature, he just signed it. I never knew this until key bank tried to ask me to pay which I'm denying it. The bank should have checked or verified the co-signer information, but they did not because its part of their tactics. I was wondering if anyone have a similar situation...

I had a client that had a similar situation. If it's not your signature then it's fraud. It's up to them to go through the proper measures to insure the signature is valid. However, they did not. Which means you can easily get out of it. I would send them something in writing notifying them of the issue.

You will have to file a police report against your son since he is the one who committed the fraud, not the bank.

Technically, both are responsible. The bank did not do their part checking if my signature if valid or not. They only checked name and ssn for credit check. If the credit is good, loan is accepted without checking if there is a fraud or not because they can always get their money back.

Banks never check for student loans since the applications are normally done remotely. From my experience, the student takes 100% of the blame and the consequences for the fraud. I saw several Plus loans taken out fraudulently over my years and they pursue them thru the legal system.

As a co-signer on a student loan, I was not notified of deferment, they say I was because they sent a letter to me that they did not recieve back. That was thier proof I recieved the deferment letter. Now Im stuck with a additional 4,000 in interest due to this. No one cared and no one wanted to hear about it. Good ole Government, dont help the taxpayer that tries to do the right thing, just spend my tax money to bail out multi million dollar corps. Gotta love it.

You signed for a private loan, not a government loan....government isnt involved. Maybe you should be directing your anger at the primary person on the loan.

My boyfriend took a loan out from Key Bank for $47,000.00 to attend Silver State Helicopter School. He made payments until we sold items to pay the loan in full. The $47,000.00 dollars was to pay for private and commercial license. This was a dream. Within weeks of paying the loan off in full Silver State closed its doors and filed bankruptcy without any warning. We have now spent $47,000.00 and did not get to complete the school and now have no money to complete the training in another school? We have now been told that Key Bank is to pay all but $5,000.00 back to us because we were told that we had to go to Key Bank for this loan? Is this true or do we need to sue for our money back?

It has nothing to do with what bank you borrowed from....all banks would follow the same policy. However this is a complicated case and you did get some training so I am assuming that you would be held liable for some of the costs. This is a case where you really need an attorney.

soaplady is an ******* you have no idea what it is like trying to find a job with 1000's in student loan debt. I was never counseled on my loans and was led to believe I would be paying something totally different than what was sent to me upon graduation. The bank made it sound like it was going to be affordable now they want 1500 a month from me and my paychecks are 800 every 2 weeks. I work 55 hours a week and have no money and I am looking for a second job in a recession. You are the most un-compassionate person I have ever seen.


Personal attacks are not permitted here, per [URL="http://www.debtconsolidationcare.com/tos.html"]site ToS[/URL], clause 20. Thanks for your understanding. - Uncle Wulf

If has nothing to do with compassion....it is reality....this is just how private student loans work. Don't shoot the messenger.

SoapLady doesn't belong on this board. Obviously she has no idea what the recent practices of lenders have been like, or the reality of trying to land a decent paying job in this economy.

Cosignor dad...I am very aware of lender practices. However no one forced a pen into your hand to cosign on any loan. Education is not a right in this country....unfortunately a lot of people make poor decisions when it comes to private loans. This is reality.

Quote:

Quote:

student loan companies should not...and i mean not have any more protection than credit card companies or other bills...the price for education is out of this world...and when you line it all up for that good job and the market dies...well its just wonderful....its just another scam....even if i get a third job...yea thats right..i cant afford the monthly payments....all that work...all that hard work...and nothing for it but debt...i unlike others checked out the options..looked at the salary..and dammit if the jobs were there...then yes i could pay the dam things...but they arent and nothing i have done has fixed the situation....so yes you should be able to claim bankruptcy on these loans....lenders wouldnt loan anymore...guess what schools wouldnt charge as much and people wouldnt be in a mountain of unpayable debt until the day they die

You said it. We're supposed to be the greatest country in the world, but one needs a lifetime of debt for a good education. In Cuba, they have free education all the way through PhD. Not to mention free health care.

I have discovered that my son has
100,000 in student loans that I supposedly co-signed on. I did not co-sign on these loans. Now they are going after me for the money. How do I get out of this without sending my son to jail?

Fraud is a criminal offense. The only way to get out of it is by doing a police report.

Your son made a choice...there is a very clear statement on the prom note as to the penalties. Now it is your choice.

Quote:

Keybank put a loan in default with no notice to me (a cosigner). They didn't notify my daughter because she filed for bankruptcy so by law they can't contact her; she was making payments when it went into default! Of course KB refuses to do anything. My daughters' legal obligation may be over, due to the bankruptcy, but I am still liable. KB will settle the debt for 75% of the amount, but YOU HAVE TO ASK, and you have to have funds available, as the settlement offer is only good for 30 days.

What makes you think your daughter isn't obligated? Student loans are not included in bankruptcy.

Correct......your daughters legal obligation does not end. As soon as the bankruptcy is dismissed it will all come due again.

SoapLady, are you being paid by the big banks to post on here and to answer negative comments about Key Bank? I don't know why I am even asking, of course you are. Why else would you be posting on the same thread since 2007 if you weren't?

Get off of your soap box and look at things realistically. You are naive and out of touch if you don't think banks prey on students looking to better themselves by attaining a college degree. I am currently working 4 jobs... yes 4... with a child in daycare and still can't keep up with my loan payments. I have taken money out of my 401K to get caught up, then when life throws you one of those inevitable curveballs and you fall behind, Key Bank is there to say "F*** You, pay me". At least KB is constistent. Key Bank offers no solutions and thinks 18 months of forebearance time should be enough for a recent college grad to secure a well-paying job and begin repayment. They know damn well it is not enough time and then they start tacking on all the late-fees and extra charges.

Stay away from Key Bank... AT ALL COSTS! They make me wish I never went to college.

Quote:

I had 113,000 worth of Key Bank loans discharged through bankruptcy last week. No co-signer. I can afford to live again. It is possible. Dozens of other pilots I know have done it.

You more than likely did NOT have them discharged unless you had an adversarial hearing. If you just listed them without doing the hearing, the loans become due again as soon as the bankruptcy is discharged.

Quote:

Quote:

You two so-called moderators are ridiculous!!! Student Loan providers should allow situational grace periods for borrowers because it would be in their best interest. If someone cannot pay for their loan due to economic troubles or because getting a college degree is basically the same as someone having their high school diploma 20 years ago. What I mean or should say is that if they allowed this "grace period" people would have less to worry about and could actually use the time that they don't have to pay on them to better their career and "get ahead" through experience in the work-force. Therefore, they could more readily pay off their debt. Its not that hard to understand that concept. Its also called compassion/empathy/having a heart/understanding. Ya know, the market is now saturated with college degree's. They are a dime a dozen and it no longer makes you any better than everyone else applying for a job; therefore, the amount people that get paid what we were all raised as children to believe (That you can only succeed and get a good job if you get a college degree). That is no longer true; however, we are now indirectly forced/pressured/taught to go to college and you'll make more than enough money to pay back your loans. This is the main problem! Anyone who cannot grasp that concept is ignorant of societal trends and more than likely was given an opportunity to succeed after college so they convince themselves that they "earned" it, when in fact, they were given a means to pay it back. I'm sure you answer to that is "No, I worked hard to get where I am!' Yes, I agree, working hard is a part of it. Of course, if you are someone who hasn't been given an opportunity to work hard at a meaningful job then you are stuck in the facet of life that all of the people who were given chances complain about. As human beings, we always try to make ourselves feel better about our accomplishments by putting others down. Think about the saying- IN A WORLD FULL OF SAINTS THERE IS ALWAYS A SINNER - then tell me or lecture us or whoever on "their lack of responsibility of paying back their loans" or how they should have known better than to take out so much money to "better themselves" - A college degree used to be a means to an end - now it is just a means we are taught to achieve, just to get into debt the rest of our lives. There aren't enough jobs for all of the degrees that get pushed out every year. You do the math! Ignorance is bliss - so appreciate the opportunities you were given to all of you who criticize those who are not able to pay on their loans temporarily. I'm guessing you vote next to the letter "R" and have insensitive parents, liviing in a box your entire life and probably never stepped foot into a social services job.
Thanks

Quote:

For starters, federal student loans DO offer deferments and forebearances up the wazoo plus loan cancellation opportunties and Income Contingent repayment options. It is the private loans that dont and if the student had gone to a school they could have afforded in the first place they wouldnt have to borrow private funds. I have little sympathy for those who borrow private funds too excess.

As to your assumptions, you are totally backwards. Maybe some of these degreed people who cannot find a job should go work collecting student loans. You would quickly change your tune.

Quote:

Thats like saying - Maybe if you went and worked for one of the companies who handed out low-income families a home with variable rates on their mortgages then you would understand why they are foreclosing on millions of families because they shouldn't have ever bought a home if they couldn't afford it. Thats extremely one-minded, one sided of a viewpoint. If you explained to me your life from the beginning to the where you are now then I would better understand the reason why you believe such a thing. Until then, your viewpoint is irrelevant to me. You are the minority. You are the one who views the glass half-empty or half-full when the person should be saying: That depends. How did the water get into the glass? Was the water being poured into the glass? Because if it was in the process of being filled, then I would say it is half-full. If the glass was already full of water and someone decided to pour out half of it, then I would say the glass is half empty since it was in the process of being emptied.
If you only look at things in life through one scope then you will never reach full actualization or fulfillment in life.