Co-signed student loan- Sue the borrower?

[joeea]

I'm guessing that right now, if the OP is making payments, the lender won't go after anyone. Maybe if the OP stops payment, but then his own credit rating would suffer, which can affect car insurance rates even if he has no plans to borrow money.

When a loan is cosigned, the lender can and will go after whoever has the money to make the payments. That's what cosigning is all about.

No only will the OP's credit rating suffer, they could get sued for the unpaid money, along with legal fees.

 

[nhcycling]

Hmm, interesting that she required a co-signer for medical school loans. That’s not the case with my second year med student. Also interesting that she was in the military and had to take out loans. Military med students get scholarships to pay 100% plus a monthly stipend, they need to serve after they graduate.

 

[ncbill]

Hmm, interesting that she required a co-signer for medical school loans. That’s not the case with my second year med student. Also interesting that she was in the military and had to take out loans. Military med students get scholarships to pay 100% plus a monthly stipend, they need to serve after they graduate.

OP is on the hook for a year of undergrad.

Not clear if she had medical school paid for by the military - professionals (usually doctor/lawyer/clergy) who paid for grad school on their own dime can direct commission into the military.

 

[cooch96]

I concur with most here. Don’t bother to sue, unless you have a lawyer on retainer and you need to keep her busy. I suggest chalking this up to a vicious lesson in human nature.
I personally would never speak to the relatives involved again. I fear if I tried to simply move past this, one of them would come to me for money again in the future and I would be irate; possibly incensed with rage.
If you are a better man than me, perhaps you can communicate how betrayed you feel and that you cannot responsibly do anything like this ever again. And then invite them over for BBQ.

Good luck.

 

[Sojourner]

Hmm, interesting that she required a co-signer for medical school loans. That’s not the case with my second year med student. Also interesting that she was in the military and had to take out loans. Military med students get scholarships to pay 100% plus a monthly stipend, they need to serve after they graduate.

Yeah, something seems really odd about this whole situation. Will be interesting to see if the niece makes any attempt to pay OP back for the loan after she graduates from med school and gets a decent paying job as a physician (assuming this happens).

As for suing her to recover the money, I highly doubt that's an option unless there was some other signed contract (aside from the co-signed loan) that obligates the niece to repay OP for whatever he ended up having to pay as co-signer.

 

[14thMed]

OP here

Thanks everyone for the thoughts. I probably will start paying the debt, but keep the pressure on the relatives.

 

[Sunset]

So is there interest on the debt and at what rate ? Just wondering if it makes sense to pay it all off at once, or monthly.
Professional advice is probably in order, as if OP pays it regularly, then there is no pressure on kid to pay it. If OP refuses to pay, shouldn't the lender first sue the kid, then if nothing there, go after OP ?

OP - Definitely review your WILL, and make sure you are not accidentally going to reward these undeserving people.

 

[brett]

This IS an inexpensive lesson. Could be a lot worse. Forget about it. In the scheme of things it will not count for much.

 

[14thMed]

Yeah, something seems really odd about this whole situation. Will be interesting to see if the niece makes any attempt to pay OP back for the loan after she graduates from med school and gets a decent paying job as a physician (assuming this happens).

As for suing her to recover the money, I highly doubt that's an option unless there was some other signed contract (aside from the co-signed loan) that obligates the niece to repay OP for whatever he ended up having to pay as co-signer.

Neice graduated from med school several years ago. Never worked as a Doc. after getting the medical discharge from Army. Living off her and her husbands disability checks. Should be around 6k a month from my knowledge.
She managed to delay paying on loan till now.
Her disability was not combat related.

 

[Music Lover]

I never lend money with the intent of getting it back. If I get it back, that is great. If I don't, that's OK. I was not expecting it anyway, but there will no more loaned to that individual. Not much difference between lending her money and cosigning the loan.

If I lend money, it's with the expectation of it being repaid. That's why it's called a loan.

 

[Sojourner]

Neice graduated from med school several years ago. Never worked as a Doc. after getting the medical discharge from Army. Living off her and her husbands disability checks. Should be around 6k a month from my knowledge.
She managed to delay paying on loan till now.
Her disability was not combat related.

Hmmm... hard to comprehend why someone would go to all the trouble and hard work of graduating from med school and then never work as a doctor. Living off her husband's disability checks implies she's somewhat of a layabout or slacker, which seems inconsistent with the work ethic needed to graduate from med school. Feels like there's much more to the story, but I guess the fundamental elements are clear. She used you to pay for her medical degree that's been rendered useless by her irresponsible behavior. Makes me wonder if you saw any hint of this kind of irresponsibility or immaturity in her personality prior to co-signing for the loan.

 

[lemming]

Don't forget to amend your will to cut out the niece and her mother.... it would be a nice touch to send them a mark-up showing they have been deleted.

+1

I always appreciate it when someone saves me the trouble of posting.

 

[LARS]

As others have stated, seems like one of those "it is what it is" moments in life. Move on...

 

[Red Badger]

I never lend money with the intent of getting it back. If I get it back, that is great. If I don't, that's OK. I was not expecting it anyway, but there will no more loaned to that individual. Not much difference between lending her money and cosigning the loan.

+1.

Co-signing a loan should only be done with the mindset that it is a gift. I wish you good luck getting anything back, but very doubtful about legal remedies.

 

[Teacher Terry]

It is definitely worth the cost of a consultation with a lawyer. I would be furious but only sue if I had a good case. I would never speak to either of them again.

 

[joeea]

She managed to delay paying on loan till now.

Make sure you know and understand the details of the loan.

Does "she managed to delay paying" mean that she got a formal deferment or forbearance until now? Or just that she hasn't bothered to pay what she owes?

She may be in default. Your credit may have already been affected.

 

[ncbill]

Neice graduated from med school several years ago. Never worked as a Doc. after getting the medical discharge from Army. Living off her and her husbands disability checks. Should be around 6k a month from my knowledge.
She managed to delay paying on loan till now.
Her disability was not combat related.

That's a shame.

My oldest attends a service academy & is taking the MCAT plus shadowing doctors at a military hospital later this summer before applying to medical schools.

I can't imagine wasting such a valuable education.

 

[sheehs1]

Do you have an signed agreement with your niece that she will pay you back for your making the student loan payments in the event she defaulted on the loan? That agreement would support a lawsuit.

+100

It doesn't have to be an expensive lawsuit. If you have such an agreement, a civil hearing for a judgement would at least allow you to hope one day you would get paid back.

 

[14thMed]

+100

It doesn't have to be an expensive lawsuit. If you have such an agreement, a civil hearing for a judgement would at least allow you to hope one day you would get paid back.

No separate agreement. Never thought about that.

 

[sheehs1]

No separate agreement. Never thought about that.

Check the loan paperwork. Perhaps there is something in there that may help you (but I doubt it as the onus isn't on the bank to protect you).

You might still be able to get some sort of judgement. It's worth researching and checking into especially is she makes any money now or in the future and you can prove she has some funds to start paying you back. I'd start finding out all I could about what she is doing. (All social media accounts, friends, her mother, where she lives, what she pays in rent, etc.) I guess I am saying I would not take this sitting down until all possibilities are exhausted. I would actually be like a dog with a bone about this!

Although you and the rest of us know that by co-signing you said you would take responsibility. That's between you and the bank. But what she can pay you is between you and her, what you can prove about her finances and lifestyle and possibly a judge.
You task right now is to try to prove she could pay it. (if she can).

You might not have a leg to stand on but I would sure try if for no other reason than to make sure she does not simply walk out of this without lessons of some sort.

Best of luck with this and let us know how it turns out.

 

[ivinsfan]

Hmmm... hard to comprehend why someone would go to all the trouble and hard work of graduating from med school and then never work as a doctor. Living off her husband's disability checks implies she's somewhat of a layabout or slacker, which seems inconsistent with the work ethic needed to graduate from med school. Feels like there's much more to the story, but I guess the fundamental elements are clear. She used you to pay for her medical degree that's been rendered useless by her irresponsible behavior. Makes me wonder if you saw any hint of this kind of irresponsibility or immaturity in her personality prior to co-signing for the loan.

I agree completely, parts of the story is missing..are any of the" issues" related to mental health. A mental health problem still doesn't get you your money back, but might make it seem a little less personal. As for her Mom, I have a 21 year old niece with longstanding mental health issues, that her Mother refuses to acknowledge.

 

[Texas Proud]

I wonder why some are questioning if there is an agreement between OP and niece about paying the money back...


Well, YES... she was supposed to pay the bank... so OP making the payments will not be deemed to be a gift... so I think the default in court would be that it is a loan... niece would have to have some evidence if she wanted to claim it was a gift...

 

[marko]

Perhaps it isn't so much the $22k but more that two people that the OP loved said they would make the loan payments and didn't even seem to make even a minimal attempt to do so....

Gee. Never heard of this happening before!

 

[Bryan Barnfellow]

I think that if the "issues" were emotional illness related, then there should be some leeway. OP indicated that the niece and her husband are living on their disability payments..plural.

That said, the mother is fair game. I would create an additional new email address on gmail and name it "FromYourDeadbeatSister@gmail.com". Send her a message from it and indicate that going forward in life you will only read (with no promises to answer) email sent from her to you at this address.

-BB

 

[Sunset]

I think that if the "issues" were emotional illness related, then there should be some leeway. OP indicated that the niece and her husband are living on their disability payments..plural.

That said, the mother is fair game. I would create an additional new email address on gmail and name it "FromYourDeadbeatSister@gmail.com". Send her a message from it and indicate that going forward in life you will only read (with no promises to answer) email sent from her to you at this address.

-BB

I think it would be better to join Facebook, gather all the "friends" possible over a few months, until there are thousands.
Then start posting about how the student loan is not being paid.
Of course, make sure the privacy settings are such that the niece and mother cannot respond easily and have a THICK skin.
As Deadbeats never consider themselves to be the problem.