Student Loan cosigner Lien possibilities on expected windfall

Status
Not open for further replies.

apikuros

New Member
My son has paid little on his student loans since graduating 5 years ago. Interest is accruing and I occassionally get threatening letters from Sallie Mae when he forgets to pay or defer the loan. He will be coming into some prize money that can pay of a good portion of the loan but plans to use the money to travel and reward friends. Can I have a lien put on the prize money so that it must be used to pay off the loan? Any other options? My son lives in California, so, if available to me as an option, do I need to use legal services there if I want to litigate or place a lien?
 
Can I have a lien put on the prize money so that it must be used to pay off the loan?

No, he does not owe the money to you.

Any other options?

If your son is in default, Sallie Mae could collect a judgment against him and, if they time it right, garnish his bank account when it has the prize money in it.

Since he doesn't owe it to you, your options are essentially non-legal options. For instance, you could tell him to use the money to pay back the loan or you'll treat it as an advance on his inheritance.
 
Status
Not open for further replies.
Back
Top