International student loan - US cosigner dead
Date: Wed, 07/22/2009 - 03:05
International student loan - US cosigner dead
My old classmate and good friend got in touch with me with a unique situation. I thought here would be the best place to get
an answer -
She was an international student with a cosigner (US citizen). I think the amount was about $40,000. She had to go back to
her country after losing her job. When she got back, her cosigner died of a stroke (around 8 months ago). She continues to pay the loan instalments, but she's running out of money. Questions -
1. If she cannot continue paying back the loan, what happens? Who is liable? The estate of the dead person has already been
divided amongst his survivors.
2. Can she be extradited to the U.S. if the bank/loaning organization decides to carry out proceedings?
[My personal take on this one was that since law enforcement cannot be involved on a defaulted loan, there really cannot be
an extradition. Not sure though.]
3. The person who died is survived by 2 sons. Does this unpaid loan end up hurting their credit history or in any other way?
Thanks.
Best,
Tim.
an answer -
She was an international student with a cosigner (US citizen). I think the amount was about $40,000. She had to go back to
her country after losing her job. When she got back, her cosigner died of a stroke (around 8 months ago). She continues to pay the loan instalments, but she's running out of money. Questions -
1. If she cannot continue paying back the loan, what happens? Who is liable? The estate of the dead person has already been
divided amongst his survivors.
2. Can she be extradited to the U.S. if the bank/loaning organization decides to carry out proceedings?
[My personal take on this one was that since law enforcement cannot be involved on a defaulted loan, there really cannot be
an extradition. Not sure though.]
3. The person who died is survived by 2 sons. Does this unpaid loan end up hurting their credit history or in any other way?
Thanks.
Best,
Tim.
The cosignors family is not responsible now that the cosignor is
The cosignors family is not responsible now that the cosignor is dead and estate distributed.
She will not be extradited....debts are civil, not criminal.
There is always the possiblity that they will pursue her in her country. International collections is becoming bigger and easier with technology and the internet.
When you say "pursue", would that include them harassing her in
When you say "pursue", would that include them harassing her in person in her country? Would they be legally allowed to do that?
Thanks.
She could be sued in her own country depending on the laws.
She could be sued in her own country depending on the laws.