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Co-Signer Rights?
Question: I am trying to negotiate with Sallie Mae to settle the loan amount: to get some principal forgiveness and in return I will pay them off in full on the settled amount. My purpose in this is simply to reduce the loss I have to take on this.
My question to you is, what are my rights as a co-signer? What can I reasonably expect Sallie Mae to do for me. They are not very responsive, it is hard just to find someone who will return my call. So, I just would value your comments on what I should, and should not, expect from them in the way of help. Your response would be very much appreciated, thank you. Jeff. Irvine CA
Answer: You're now responsible for the debt as co-signer. Go ahead and try to negotiate with Sallie Mae. It can't hurt. But since you signed a legal document you're on the hook for the full amount. Maybe they'll cut you a break. But it is under no obligation to make a deal with you.
I know it's too late, but your experience is why everyone needs to think very carefully about the financial risks before co-signing a loan. There are other ways to help someone out with their student debts (or any other debt for that matter) without taking on the obligation imposed by co-signing.
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Comments (1)
June 16, 2008 5:16 PM PT
You seem to imply that you have money sitting there to pay, so why don't you step up to the plate and take responsibility for your debt?
Is this how we teach our children to behave? To walk away from our responsibilities?
I know that some people were sold loans on a "predatory basis" but I also get the sense that a lot of people were happy to jump in over their heads to make a quick buck and now they don't want to pay the piper.