Student Loans though Sallie Mae
Date: Wed, 01/11/2006 - 10:35
Student Loans though Sallie Mae
My boyfriend's son applied for and was approved for student loans, though Sallie Mae (sp?), with my boyfriend co-signing. His son didn't end up going to the school and the payments, from what I understand would have been made directly to the school.
Of course, the son isn't paying the repaying the loan, now that it's come due, and my BF is having to pay for it, since he co-signed and doesn't want his credit affected.
Has anyone had a similar situation? If he didn't go to the school, would the school need to refund the loan to the company, since the funds weren't utilized?
Reenthequeen, Welcome to forums :D Sallie Mae offers both
Reenthequeen,
Welcome to forums :D
Sallie Mae offers both federal and private student loans. Which type of loan you are talking about?
According to federal regulations, schools should refund the unutilized loan money back if the borrower is dropped out. If the school does not, DOE might release the borrower from the obligation of repayment of this portion of loan. You can contact DOE to understand your options.
However, the story might be different in case of private loans because private lenders might have some other guidelines stated in the promissory note. Please ask your boy friend to review the promissory note of the loan agreement. Contact Sallie Mae and check what they recommend.
Hope this helps. Feel free to drop few lines in the forums if you have any more queries.
The boy would have had to formally withdraw from the classes in
The boy would have had to formally withdraw from the classes in order for the student loans to be returned to the lender. Unless that is done so, the student loan covers the cost of the students seat in the class, and if he didn't formally withdraw, the loan is still valid and expected to be repaid.
student loans
Do you know if sallie mae settles loans with the co signer if the originator is having a lot of trouble repaying?
student loans
I think it is barely current she is constantly behind has tried forbarences and etc. I have a little money and I think her balance is some were round 18,000
They will not settle on the account until it is in default. And
They will not settle on the account until it is in default. And then settlements are not that big....maybe 10-20% off.