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phecksel
12-28-2007, 10:21 PM
Mom calls me tonight and is distraught over her idiot dropout grandson {my nephew} as he hasn't made a single student loan payment. She apparently cosigned several thousand dollars in student loans, thinks over 25K. To make matters even worse, he's driving a lease car she contracted to help him with school. To make mom feel even worse, he apparently snagged the last $1,000 available to buy some jewelry for his nut case g/f.

So, sometime this weekend mom is going to confront him, and we're going to be there for moral support and if needed, protection. We're also going to bring the car home... just what I need another friggin vehicle in the driveway, LOL

Until we can get to her attorney and/or financial adviser on Monday, looking for some advise to get us through Sunday, when we intend to meet with him. Is there any chance of suing him to garnish wages? He's also has a nice laptop he left at a service center at school for repair, that was bought with student loans. How to go about snagging that, assuming it hasn't been sold :(

Just to make matters worse, she ordered a new car yesterday :( Now is concerned her credit's already hit up enough to deny her a loan on the car.

Carbon Dreams
12-28-2007, 10:38 PM
I'm not a lawyer, so I'm probably wrong. Unfortunately, co-signing with all it's glory, also gives the creditor a way to collect on a loan-gone-bad. I'm sure that there is some protection for her, but she will likely be left with the debt if he skips town.

She probably has recourse against him, but really, he has nothing. Sorry to hear about all the troubles.

Good Luck.

milkmania
12-28-2007, 11:20 PM
Mom calls me tonight and is distraught over her idiot dropout grandson {my nephew} as he hasn't made a single student loan payment. She apparently cosigned several thousand dollars in student loans, thinks over 25K. To make matters even worse, he's driving a lease car she contracted to help him with school. To make mom feel even worse, he apparently snagged the last $1,000 available to buy some jewelry for his nut case g/f.

So, sometime this weekend mom is going to confront him, and we're going to be there for moral support and if needed, protection. We're also going to bring the car home... just what I need another friggin vehicle in the driveway, LOL

Until we can get to her attorney and/or financial adviser on Monday, looking for some advise to get us through Sunday, when we intend to meet with him. Is there any chance of suing him to garnish wages? He's also has a nice laptop he left at a service center at school for repair, that was bought with student loans. How to go about snagging that, assuming it hasn't been sold :(

Just to make matters worse, she ordered a new car yesterday :( Now is concerned her credit's already hit up enough to deny her a loan on the car.

well, it's time for Mom to buck up and cut the leach off
I'm glad to hear you're going for support.

sure!, somebody's gonna get pissed off, but Mom needs to take care of her self.... IMHO

You know she's been stressing over this, and all you can do is be supportive for her.
good luck:)

FoggyNogginz
12-28-2007, 11:58 PM
I hate to hear of your troubles, but happy that you are taking control. My wife's brother has a long history of things like this happening, and we finally learned our lesson this past year after years of betrayal. It's tough to come down on your own family members, but we all reach a point where we have to ask others to be responsible for their own actions.

As for the student loans, you likely have a lot of flexibility here of these are government or Sallie Mae-style loans. They essentially will take whatever you will offer each month to keep you form going into default. Be sure to call them asap to explain your situation, and be sure to offer a fixed monthly amount that you can offer to pay toward the loan. Student loans are generally much more flexible than mortgages or auto loans on repayment options.

Best of luck and Happy New Year.

Kent

phecksel
12-29-2007, 01:35 AM
I had no idea mom was in this deep with him. She's always tried to make up for the fact his mother (my sis) literally abandoned him at an early age. I knew this was coming, and should have been a bit more prepared for it. I'm going over tomorrow to have a hard heart to heart about what's going to happen Sunday. Then after the holiday's see about going over to see her financial adviser.

I need to find out if these were private or federal loans. From what I've been able to find so far, federal is much more lenient to reconfiguration and/or repayment.

I'm a little disturbed she wasn't totally honest with me about a couple of things... because she didn't want to hear what I was going to say. She's totally competent, just allowed this leach to steal from her.

cdstukey
12-29-2007, 03:34 AM
To make matters even worse, he's driving a lease car she contracted to help him with school. ...
We're also going to bring the car home... just what I need another friggin vehicle in the driveway, LOL...
Just to make matters worse, she ordered a new car yesterday :( Now is concerned her credit's already hit up enough to deny her a loan on the car.

Sounds like she could have her "new" car this weekend.

wakolman
12-29-2007, 10:54 AM
Sounds like she could have her "new" car this weekend.


I second that. Why buy another poor investment if she already has an interest in one?

phecksel
12-29-2007, 10:56 AM
it's a lease that is up in march. she probably already found a buyer for her car.

wakolman
12-29-2007, 11:00 AM
So he racked up student loans, but never finished school? He needs to finish what he started, unless he is leaving college ala Bill Gates or Greg Oden. Fact: College grads on average make more money over a lifetime than college dropouts.

phecksel
12-29-2007, 09:42 PM
So he racked up student loans, but never finished school? He needs to finish what he started, unless he is leaving college ala Bill Gates or Greg Oden. Fact: College grads on average make more money over a lifetime than college dropouts.
pppffftttt... He was too worried about tail to think about studies.

If there's any good news out of this, it appears his earlier student loans were not cosigned. It's still a substantial amount of money.

My wife and I separately talked to mom today. I went to her house and changed the locks and we chatted. It's time for him to learn the world is a cold hard place, and her lesson is the cosigned loan she's owes. I'm hoping we can keep her strong after tomorrow. My wife asked a really hard question, what would dad be saying if he was still around? She answered it correctly, and made her think. Because she has propped him up, his fall is going to be hard and ugly.

phecksel
12-30-2007, 08:25 PM
Well, that went easier, and harder then expected

Gave the keys up with virtually no discussion. Signed a promissory note, for the amount of the student loans. Promised to call Salliemae tomorrow...I'll be holding my breath.

Stormed out very angry.

Then mom told us how much support she has given him, and it goes way beyond unbelievable. Hoping this will be enough of a lesson to stop pouring money into that hole.

h2oskiluvr
12-30-2007, 08:57 PM
I work in the student loan field. The co-signed loans are not Federal loans, they are Private loans. The only Federal loan which can be "co signed" is the Federal PLUS loan which is a loan a parent or graduate student would receive. This loan would not apply to the situation you described.

They are basically unsecured credit with harsh terms if they become delinquent. They can default in as little as 60 or 90 days (every loan product is different) compared to the Federal loan which can default no earlier than 270 days past due. I highly recommend your mother contact the lender to find out exactly which loans she co-signed and what the status of them are. If they are already past due it may already be on your mother's credit report.

Once you know how much and where each loan is at you can then better evaluate your mother's options. Depending on how much is owed and how valuable your mother's good credit standing is she may have to either pay them off or start making the payments. There are very few non-payment options such as deferment or forbearance on Private loans. Short of paying the loan there is little recourse.

Sorry to hear about your mother's situation. Many people find themselves in this same situation. It is unfortunate when it happens.

atlfootr
12-30-2007, 09:34 PM
Intervention can be a hard thing at certain times, but many times necessary :twocents:

phecksel
12-30-2007, 11:07 PM
I work in the student loan field. The co-signed loans are not Federal loans, they are Private loans. The only Federal loan which can be "co signed" is the Federal PLUS loan which is a loan a parent or graduate student would receive. This loan would not apply to the situation you described.


He had something called Direct Loans, and Mom did not have any paperwork indicating she cosigned those loans. She's a stickler for paperwork! Sallimae loans were obviously cosigned.

His attitude was disturbing, and suspect he's shortly going to get a cold dose of reality. Starting out, little more then minimum wage, trashed credit, no degree, going to be a tough life.

The lease car is over mileage, has billable damage, and was filthy. She's going to get dinged some there too. My biggest coup was drawing together a promissory note. He literally signed it and left. I may be worth less then the paper it's printed on, but there may be some future value.