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I cosigned a private student loan for my daughter and I just found out that she has defaulted on the loan and she said she is not going to pay on them.Now,they are expecting me to pay the entire amount. What rights do I have and will they make her responsible for the debt,or does all fall on my shoulders?
I cosigned a private student loan for my daughter and I just found out that she has defaulted on the loan and she said she is not going to pay on them.Now,they are expecting me to pay the entire amount. What rights do I have and will they make her responsible for the debt,or does all fall on my shoulders?
Hate to be this guy but this is really the wrong forum for this.
Back out to city data forum and try one of the financial forums or the college and university forum and you should get a lot of replies. If you need help getting to them PM me and I can help you.
I dont have firsthand knowledge of student loans. But I believe you are jointly liable for the loan as you consigned ... So if you don't make the payments, both you and your daughter will have your credit affected, if it hasn't been already and your wages could be garnished if payments aren't made.
I don't know of an easy way out of the debt (dont ever cosign on a loan btw) But you should contact the lender to discuss your options for a payment plan, fees, etc. Also talk with your daughter about paying something towards the loan. She should have told you before she let the loan default.
They always want a co-signer for a reason...and this is it. Students can't be trusted to pay things back because they don't have credit yet, whereas parents do. Most parents trust their kids but ended up regretting it when they don't finish school and can't pay for the money that was loaned out. Your daughter should have told you it was defaulting...she should have also made the payments...sorry. I think you can take it up in court, but not much else you can do.
I have to agree with the previous posters. Being a co-signer is basically guaranteeing the loan. If the primary debtor defaults then the lender can turn to the co-signer for full recourse.
I think - but I am not completely sure - that you would end up with a claim against your daughter for the amount of the loan. Of course whether or not a parent elects to pursue such a claim will vary quite a bit on the individual circumstances. But that is the only potental legal remedy that may be available of which I am aware. I understand student loans are very difficult to get out of through bankruptcy.
You can try to work with the lender to set a payment schedule you may be able to make. Hopefully if you do start oaying your daughter will at least contribute and not leave you with the entire burden.
Last edited by CrowGirl; 09-02-2013 at 09:38 PM..
Reason: fix typos
As others have mentioned, this student loan is just as much your loan as it is your daughters. Your daughter is just as much a cosigner as you are.
The best right you have in your favor is to cut your daughter off and pay off the loan (if you care about your credit) or be a deadbeat (if you don't).
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