My brother co-signed a private student loan for my son, and things have gotten super complicated. Back in 2008, my son filed for bankruptcy, but we reaffirmed the loan so they wouldn’t go after my brother. Fast forward to 2023, they’ve now switched the loan over to my brother, even though my son was still making payments. The loan balance is huge now, around $90K, and we’re paying over $900 a month! My brother is 68 and retired. I’m not sure what to do anymore… any advice?
Wow, that sounds rough! Have you talked to a lawyer about this? Maybe they can help with a settlement or something.
Cameron said:
Wow, that sounds rough! Have you talked to a lawyer about this? Maybe they can help with a settlement or something.
Yeah, I’ve reached out to one, but the consultation alone is $350. They did suggest possibly trying to settle the debt.
@Sam
Yikes, that’s pricey. A settlement could definitely be worth a shot though.
Wait, why did they move the loan to your brother’s name? Did they give you any reasons?
Bailey said:
Wait, why did they move the loan to your brother’s name? Did they give you any reasons?
They mentioned something about my son’s bankruptcy from 16 years ago. Doesn’t make sense to me since it’s been so long.
@Sam
That’s wild. You’d think there’d be a statute of limitations or something!
I’ve heard of some people negotiating with loan companies for a lower payoff amount. Maybe you could try that?
Keaton said:
I’ve heard of some people negotiating with loan companies for a lower payoff amount. Maybe you could try that?
We tried, but they’re only willing to settle for 95% of the balance, which is still way too high.
@Sam
Ugh, that’s frustrating. I think waiting until they’re more desperate for the money could help.
Have you considered looking into whether there’s a way to get the loan back in your son’s name? I’ve heard that’s possible sometimes.
Corey said:
Have you considered looking into whether there’s a way to get the loan back in your son’s name? I’ve heard that’s possible sometimes.
I’ve heard that too, but I’m not sure. Another attorney mentioned it, but I’m worried my son won’t be able to pay either with his situation.
@Sam
That makes sense, especially if he’s dealing with a lot. Maybe a financial advisor could help you figure out what’s best?
This is so stressful… If you wait a few months, do you think they’d be more likely to settle for less?
Fintan said:
This is so stressful… If you wait a few months, do you think they’d be more likely to settle for less?
That’s what I’m hoping. We might try waiting until December to see if they’re willing to lower the amount.
@Sam
Yeah, waiting could definitely put some pressure on them. Fingers crossed they agree to a better deal!