Private student loan questions.

[dorothy]

Hi my name is Dorothy Burch. I was a student online until September when my financial aid ran out. Years before I went through Sallie mae and received a private student loan. I had my brother in law who is disabled co sign for me. I was not considered disabled or have the health problems i am now facing. I have high blood pressure, fluid buiding up on my knees that is reducing the amount of time i can walk and i have obstrcutive sleep apnea. My doctor is waiting for final breathing tests to be done and then wants me to start going for SSI. I have put my other loans in forebrance and was told i could put my private loan on forebrance as well. Now i'm told my time which was a year has run out. I have informed them that i received medicaid and foodstamps and the only income i recieve is my husband who we are seperated paying the rent and lights as child support. I have informed them that i could pay a hundered to two a month until my SSI. I do not want my brother in law who is already going through a foreclosure and recenlty bankrupcy which they told him he could not file the student loan on to come off as co borrow to have too face paying this. Can you please tell me what my options are as i do not want to default. I just want to work with them so i can afford the payments until I can receive my disablity benefits

 

[Proserpina]

If you receive SSI, it cannot be garnished at all. This means that if you don't pay, the creditor will go after the co-signer (your brother-in-law).

There's no guarantee you'll actually be approved for disability. With that said, if your brother-in-law does go through bankruptcy that might free up resources so he can pay off the loan.

 

[dorothy]

Thank you Proserpina. My brother in law can't afford the payments either see he is on disability himself. and he filed bankrupcy because of financial hardship but his lawyer told him he could not include the private student loan. Is their anyway to get him off of being the co signer. and do you know the options that i can take sure as conslidation and such. Thank you for responding. I know i have a fight on my hands for disablity.

 

[Betty3]

It's not that easy to remove a co-signer from a student loan - requirements must be met by the primary borrower:
Generally borrower must make a minimum number of on time principal and interest payments;
Primary borrower has strong enough credit history;
Borrower must submit a written request for release of co-signer but co-signer will not be released unless all credit & repayment requirements noted above have been met.

It sounds like from both your posts you don't want to default but pay what is due. Will they accept the $100-200 you said you could pay a month?

If your brother-in-law is on disability, his income may be exempt from garnishment also.

 

[army judge]

It's all but IMPOSSIBLE to discharge a federally guaranteed student loan via bankruptcy.

Those things never go away.

The collectors the Feds hire interdict tax refunds, assets, everything.

They'll get their money, one way or another.

They may not get it ALL, but they'll hound you almost as much as the IRS.


Sent from my iPad3 using Tapatalk HD

 

[despritfreya]

While it can be difficult to discharge student loans in bk, it is not impossible and the Suze Orman attitude that it cannot be done is just garbage. Below are two links to info on such issues. The first is the forum link and the second is a case in point (although the discharge was partial). If the second link does not work, look for "Help!-Mostly-won-AP-but-suspect-appeal-will-be-filed" under the first link.

You (and your brother) may qualify based upon health and/or whether or not the private loan actually meets the IRS requirements as stated in 11 USC 523(a)(8)(B). Both you and your brother need to meet with a well qualified bk attny. Your brother's case can be reopened AT ANY TIME for a determination on the dischargeability of the student loan. Please don't buy into the crap that you read that says such loans are never dischargeable - most get this vastly incorrect info from folks like Ms. Orman who have no clue and are doing a huge disservice to those who are in true hardship.

http://www.bkforum.com/forumdisplay.php?26-Student-loans

http://www.bkforum.com/showthread.php?75311-Help!-Mostly-won-AP-but-suspect-appeal-will-be-filed

Des.

 

[Proserpina]

Concur. It's not impossible, the same as it's not impossible to discharge taxes.

Thanks, Des.

 

[dorothy]

I want to thank all of you for your wonderful advice. I have been struggling trying to fiquire out what to do or what options I have. God says he works through man and i believe it. Thank you all for allowing God to work through you to give me hope. Bless each of you.

 

[Proserpina]

Good luck, Dorothy.

I wish you the best

 

[Betty3]

You're welcome. Good luck to you.