Is there anything that can be done about a private student loan when I have no job and I have a co-signer?
I have a couple of private student loans. The reason being having gone to a private school. I expected to get a descent paying job right out of college. Worse-case scenario, have more than one job for the time being. I stayed in the city where my college was located for a few months and worked part-time at a pizza shop. I had no luck finding a second job or a full-time job. The job market is down. I’ve looked and looked and no luck. My mom requested that I move back home and I agreed, figuring I might have better luck finding a job there. I have not been able to make any loan payments and I am two months behind. My great-grandmother was my co-signer and the lenders keep calling and hassling her. I understand that’s what they are supposed to do, but is there anything that can be done? Consolidation is an option, but there’s no money coming in anywhere. I know that when she signed as a co-signer she made herself liable for my short-comings, but is there another way around this? I would ask my mother for help, but she is no position to hand over money. Please offer me any advise possible. Thank you.
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iDShaDoW said,
May 26, 2010 @ 4:06 pm
I’m not 100% sure, but with most student loans, you can have them defer payments (stop requiring monthly payments) for a short period.
You’ll still be charged interest each month, but you won’t have your credit messed up (in this case your great-grandmother’s) and it should get the collection agencies off her back for awhile.
You should go to the website of the company that gave you the loans and see if they offer deferments and you’ll have to talk to them and let them know that you have been looking for work and, with the economy as it is, that you haven’t been able to find work for the time being and are still looking.
insomniac said,
May 26, 2010 @ 4:41 pm
I was just looking at this myself, except my loan is with Sallie Mae. The company I spoke with said you have to be over ten thousand dollars in debt and in default; for a fee of something like seven hundred dollars they will negotiate your loans down to 50% of what you owe. I decided to extend my forbearance for the time being, because I can ,so I didn’t go further, but if you can cut your loan by half…I would find a way to do it, if I were you. It won’t cost you anything to call to get some real information instead of asking us. Shop around compare prices and services.
Valentina said,
May 26, 2010 @ 5:08 pm
Go to this website http://www.astudentloandebt.com. They have great resources on there you can check out. Hope you find what you are looking for.
mickiinpodunk said,
May 26, 2010 @ 5:30 pm
You usually cannot defer or consolidate alternative student loans, unfortunately, but you may be able to get the lender(s) to grant you forbearance for a few months until you can find a job, they might even allow you a hardship deferment of payment, but that’s not a given as it would be with a federal student loan. Forbearance allows you to pay the interest that accrues, while not paying down the principle of the loan. Your only other alternative would be to declare personal bankruptcy, since private educational loans might be able to be discharged under that, but they may then continue to go after your great-grandmother for payment as co-signer, and your credit is ruined for 7 to 10 years. Call your lender and calmly explain your situation and see if they are willing to work with you for forbearance or reduced payments until you are sufficiently employed to repay rather than letting this go without payments. Most lenders would prefer to work something out with you, but you cannot scream, cry, or be uncivil with them. They have the right to refuse, and this is something you should have done before you fell behind in the first payment, but try.