So my brother co-signed a private student loan for my son, and now the loan has been transferred into my brother’s name even though my son was making payments! This all started back in 2008 when my son filed for bankruptcy and we reaffirmed the loan. Now, 16 years later, the loan is over $90K, and we’re paying $900 a month, but my brother’s retired. We’ve paid about $18,000 since February, and we’re struggling to keep up. What can we do in this situation? Any advice would help!
Oh no, that sounds so stressful! Have you talked to anyone about settling the debt for a lower amount?
Yeah, I did, but they’re only willing to settle for 95% of the loan balance, which is still way too much.
That’s so frustrating. Maybe they’ll come down more if you wait a bit?
Did they ever explain why they moved the loan into your brother’s name? Seems odd since your son was still paying.
They said something about my son’s bankruptcy from 16 years ago, but it doesn’t make sense to me at all.
That’s so weird! You’d think after all that time, they wouldn’t still be bringing that up.
Have you tried looking into legal options? Maybe a lawyer could help negotiate a better deal or even get the loan back in your son’s name.
I talked to a lawyer, but the consultation alone was $350. They mentioned debt settlement, but no guarantee it’d work.
Oof, that’s expensive. Maybe see if you can find a cheaper option or even try negotiating yourself?
If your brother’s retired, can they go after his retirement or assets if he stops paying?
That’s what I’m worried about. He’s concerned they’ll come after his house if he doesn’t keep up with the payments.
I think they can only do that if they win a judgment in court. Might be worth looking into legal protection just in case.
Have you thought about waiting a couple of months before trying to settle? Sometimes they get more desperate for a deal if you hold off.
Yeah, that’s what I’m thinking too. We’re hoping to wait until December before trying to negotiate.
Good idea. Hopefully, by then, they’ll be willing to settle for less.