My husband is the co-signer of his daughter's student loan. He's been paying on it for years because she refuses to. She is not in school any more, nor did she graduate. The problem is that my husband got laid off due to downsizing at his job. He still has been paying for it with his unemployment checks, but now he no longer receives unemployment checks. He is now unable to work because of an illness that has progressed in the past year. His daughter does have a steady job.
Is there a way for them to go after her now, instead of my husband since she is employed and my husband isn't? I'm on disability myself and we can't afford to pay on this loan any longer. Any advice? He is now trying to get on disability because of his illness. If he is able to get disability, would they garnish that check to pay for the loan?
Linda from Austin, TX
I am really not sure, but honestly I would have him call the lending company and discuss with them the situation. If she does not pay, he would be held accountable and if anything should happen with her not paying you would then have to try to take her to court over the matter! Sorry I can't help you out though! Good luck with this and her! (07/09/2007)
I used to help people with their student loans, but it's been several years, so the following information could be wrong. Please make sure to do a Google search to check what I'm saying:
If your husband has a disability that developed after he signed for the loan, and the disability is 100 percent, then he may be able stop paying on the loan, depending on the lending agency.
Generally speaking, your husband and his daughter are equally responsible for the debt, and the lending agency usually collects from whoever it can find. You or your husband may want to inform the lending agency of the daughter's whereabouts, including her work information. Generally speaking, the lenders don't want to do wage garnishment and would much rather work with the daughter to set up an affordable payment plan.
The last I heard, federal law allows wage garnishments to go through without any sort of a court hearing so it's in the daughter's best interest for her to work with the lending agency.
But the best and most important advice has already been posted:
Any time a situation arises with your student loan, the first thing to do is to call the lending agency. Make sure to ask them about the rules about disability, or if you can get lower payments based on income.
As far as I know, if your husband gets on Social Security disability, those checks "cannot" be garnished. (07/11/2007)
By Cindy S.
I understand your concern, of course it would be best if your daughter would step in if only to take the heat off your husband.
However, as far as disability income is concerned, every state is likely to have different rules, but they have to leave you enough to live on. Disability income is pretty meager as it is. They may just decide that his daughter will be easier to go after now.
It also might be good to talk to the lender and explain that you have no income at this point and don't know when or if you will have some. Just be a little diligent about your assets. If you have a bunch of money in a bank account, say, although by your story, not so likely, they can get a judgment and take it.
I know way more than I want to about loans, lenders, and the dirty tricks they use. I have been dealing with similar stuff since I got laid off a year ago and my husband is getting reduced hours.
My loans have been sold to collection agencies and I know how to deal with them. If you like, you can contact me.
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