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Relative not paying private student loans

Date: Wed, 08/05/2009 - 07:43

Submitted by johnson-vincent
on Wed, 08/05/2009 - 07:43

Posts: 3 Credits: [Donate]

Total Replies: 5

Relative not paying private student loans


I have a relative that is not paying her private student loans with Sallie Mae, but they have not yet went into default. They are close. My mother cosigned for one and my father cosigned for the other. I have two issues:

1.) My father recently passed away. I am responsible for handling all of his financial obligations. Can I have him removed from the loan or is the estate responsible.

2.) What can they do to my mother if the loans are not paid. My relative has no income and no pending leads. Sallie Mae cannot get anything from her. Can they garnish my mother's retirement (some Social Security, some pension program)?


If the loan has not gone into default, the estate is not responsible. However, if the loan defaults and they get a judgement before the estate is settled, then they can make a claim on it. However this is not likely to happen.

Your mom can be sued on the other loan if it goes into defaut. They cannot garnish her SS but they can freeze her bank account and lien property.


lrhall41

Submitted by SOAPLADY on Wed, 08/05/2009 - 08:00

( Posts: 17315 | Credits: )


No, he cannot be removed from the loan. The only way a cosignor can be removed is if there was a cosignor removal clause and that usually requires on time payments for a number of years.

Only thing you can do is hope for the best. Legally your father took on the obligation of this loan may need to be paid on like all of his other obligations.


lrhall41

Submitted by SOAPLADY on Wed, 08/05/2009 - 10:49

( Posts: 17315 | Credits: )