What happens if you stop paying student loans?

[Splash]

Okay, this is a follow up to my other post about my friend possibly on drugs.

Her mom just can't support all the bills. She can't. And while she can sell the car (or give it to her son, because DK is going to be driving soon and she wants him to have a car) and cancel the cell phone, she can't really do much about the student loans. She cosigned for them, so she's on the line to pay them.

It's about $300 a month. She knows Sharla won't pay. But what happens if she just stops paying? How much do they really go after you for student loans? And can she defer them on this basis? What are the rules/procedures for deferring student loans?

I guess my main question is... if she just doesn't pay them, what will they do to her? I suppose they can send it to collections, and she knows that might happen. But will they actually come after her for the money?

[Splash]

Okay, this is a follow up to my other post about my friend possibly on drugs.

Her mom just can't support all the bills. She can't. And while she can sell the car (or give it to her son, because DK is going to be driving soon and she wants him to have a car) and cancel the cell phone, she can't really do much about the student loans. She cosigned for them, so she's on the line to pay them.

It's about $300 a month. She knows Sharla won't pay. But what happens if she just stops paying? How much do they really go after you for student loans? And can she defer them on this basis? What are the rules/procedures for deferring student loans?

I guess my main question is... if she just doesn't pay them, what will they do to her? I suppose they can send it to collections, and she knows that might happen. But will they actually come after her for the money?

[mamato1]

Maybe this site can help: http://www.ed.gov/offices/OSFAP/DCS/index.html I would also advice her to look into a deferment or forbearance.
Chris

Mama to Brendan (aka Boomer) 01/16/04


http://b3.lilypie.com/FnI6m5/.png

[mamato1]

Maybe this site can help: http://www.ed.gov/offices/OSFAP/DCS/index.html I would also advice her to look into a deferment or forbearance.
Chris

Mama to Brendan (aka Boomer) 01/16/04


http://b3.lilypie.com/FnI6m5/.png

[set81616]

I second the deferral. Since she cosigned she is liable and it would go on her credit report if she does nothing. It is extremely easy to get a deferal. Just call whoever owns the loan. See if she can talk to a not for profit credit counselor about how damaging doing nothing would be.
Shannon

[set81616]

I second the deferral. Since she cosigned she is liable and it would go on her credit report if she does nothing. It is extremely easy to get a deferal. Just call whoever owns the loan. See if she can talk to a not for profit credit counselor about how damaging doing nothing would be.
Shannon

[KBecks]

Just want to say if Sharla's mom is having such a difficult time with the bills, its probably better for her to get rid of a car than to give it to her teenaged son to drive.... unless said teenaged son can 100% afford to pay his own insurance, repairs, gas, etc. etc.

Insuring a teenaged driver is $$$$. It sounds like another financial obligation that the mom really shouldn't be taking on at this point.

[KBecks]

Just want to say if Sharla's mom is having such a difficult time with the bills, its probably better for her to get rid of a car than to give it to her teenaged son to drive.... unless said teenaged son can 100% afford to pay his own insurance, repairs, gas, etc. etc.

Insuring a teenaged driver is $$$$. It sounds like another financial obligation that the mom really shouldn't be taking on at this point.

[JTsMom]

Not paying student loans is baaaaaaaaaaaaaaad news. I don't know how bad it would be for a co-signer, but if you go into default, haunts you for a really long time. It's worse than not paying a cc by far. I know it makes it pretty much impossible to qualify for a mortgage.

Ditto everyone on getting them deffered. It's pretty easy to at least get 6 months. If nothing else, you can usually get the payment lowered.

[JTsMom]

Not paying student loans is baaaaaaaaaaaaaaad news. I don't know how bad it would be for a co-signer, but if you go into default, haunts you for a really long time. It's worse than not paying a cc by far. I know it makes it pretty much impossible to qualify for a mortgage.

Ditto everyone on getting them deffered. It's pretty easy to at least get 6 months. If nothing else, you can usually get the payment lowered.