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Old 06-02-2018, 10:00 AM   #21
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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.
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Old 06-02-2018, 10:30 AM   #22
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Originally Posted by pb4uski View Post
OP, has the lender sued your niece to get paid? I read that some states forbids a lender from collecting from a co-signer without first trying to collect from the primary borrower.
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.
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Old 06-02-2018, 10:34 AM   #23
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I am not saying that loaning to friends/relatives always ends badly, but it changes the relationship. And if you aren't paid back as agreed, it can ruin the relationship.
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Old 06-02-2018, 10:42 AM   #24
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Old 06-02-2018, 02:25 PM   #25
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Co-signed a student loan for my neice,who hasn’t made a single payment. Seemed like a good idea at the time.My sister neglected to to tell me her daughter had “issues “. Niece went to medical school but has never practiced. She was medically discharged from the military. So, here is my question— Would it do any good to sue her? Other than make me feel better?
If suing and failing to win a judgement while ostracizing you from your family makes you feel better, then go for it. Otherwise, don't waste your time.

Who do you think you would sue? Under what grounds?

I'm assuming you haven't contacted a lawyer yet. Hope you get a good one who talks you out of it cheaply.
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Old 06-02-2018, 02:30 PM   #26
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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.
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Old 06-02-2018, 03:13 PM   #27
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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.
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Old 06-02-2018, 03:22 PM   #28
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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.
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Old 06-03-2018, 11:09 AM   #29
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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.
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Old 06-03-2018, 11:27 AM   #30
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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.
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Old 06-03-2018, 11:30 AM   #31
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OP here

Thanks everyone for the thoughts. I probably will start paying the debt, but keep the pressure on the relatives.
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Old 06-03-2018, 11:38 AM   #32
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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.
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Old 06-03-2018, 11:56 AM   #33
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This IS an inexpensive lesson. Could be a lot worse. Forget about it. In the scheme of things it will not count for much.
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Old 06-03-2018, 12:15 PM   #34
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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.
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Old 06-03-2018, 12:15 PM   #35
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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.
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Old 06-03-2018, 12:55 PM   #36
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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.
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Old 06-03-2018, 01:28 PM   #37
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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.
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Old 06-03-2018, 01:54 PM   #38
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As others have stated, seems like one of those "it is what it is" moments in life. Move on...
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Old 06-03-2018, 02:23 PM   #39
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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.
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Old 06-03-2018, 02:51 PM   #40
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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.
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