In 1995 my husband (at the time) and I completed a "spousal consolidation" student loan. Big Mistake! President Clinton has since made these types of loans illegal. One of these loans were unsubsidized causing the entire new loan to be unsubsidized. This new loan was at an 8% interest rate. I spent much of the next 11 years either working only part time or as an at-home-mom.
My husband chose repeatedly to forbear the payments. Over many years with such a high interest rate, we became increasingly concerned that we would never get this loan paid off. It was now over $90,000 from the original $64,000. ($15,000 was mine, $49,000 was his). We discovered that if we consolidated this large loan with a smaller one of a lower interest rate we could have the interest rate dropped for the new consolidation. I had a smaller loan in my name that we chose to consolidate and lower our interest rate. When the transaction was complete we received the new loan and I was the only one listed. I contacted Nelnet (the loan holder) and they explained that because the smaller loan was in my name my husbands name was removed!!! I was completely dumbfounded at how this could happen. They claimed that because I was the Borrower and he was the co-borrower that removed his name! First of all, how did I become the Borrower and him the co-borrower? He had a greater percentage of the original loan amount and I wasn't even working at the time. Why would they drop him from responsibility!?
My husband and I began a long and ugly divorce shortly after this. I was to distracted to deal with the student loan at the time. Finally, after realizing that even the family law judge couldn't help me by giving him his part of the loan to repay, I began investigating a little more. I eventually recovered two of the same documents that had been filled out when the loan was transfered into my name a lone. The first one had my husband listed as the Borrower and me as the co-Borrower. This document had a line through it. The same document dated almost a week later had me listed as the Borrower and him as the co-borrower. This is apparently the critical action that removes him of responsibility of this loan. How can I repair this as the loan is now almost $160,000. I don't have consistent work and didn't even receive a degree from this original $18,000 in student loans. My ex husband has a good job and a master degree, partly paid for by the loan that is now in my name. Please help me as the desperation I feel is incredible. I have talked to a lot of people but no one has ever heard of this kind of this and has no suggestions for me.
My husband chose repeatedly to forbear the payments. Over many years with such a high interest rate, we became increasingly concerned that we would never get this loan paid off. It was now over $90,000 from the original $64,000. ($15,000 was mine, $49,000 was his). We discovered that if we consolidated this large loan with a smaller one of a lower interest rate we could have the interest rate dropped for the new consolidation. I had a smaller loan in my name that we chose to consolidate and lower our interest rate. When the transaction was complete we received the new loan and I was the only one listed. I contacted Nelnet (the loan holder) and they explained that because the smaller loan was in my name my husbands name was removed!!! I was completely dumbfounded at how this could happen. They claimed that because I was the Borrower and he was the co-borrower that removed his name! First of all, how did I become the Borrower and him the co-borrower? He had a greater percentage of the original loan amount and I wasn't even working at the time. Why would they drop him from responsibility!?
My husband and I began a long and ugly divorce shortly after this. I was to distracted to deal with the student loan at the time. Finally, after realizing that even the family law judge couldn't help me by giving him his part of the loan to repay, I began investigating a little more. I eventually recovered two of the same documents that had been filled out when the loan was transfered into my name a lone. The first one had my husband listed as the Borrower and me as the co-Borrower. This document had a line through it. The same document dated almost a week later had me listed as the Borrower and him as the co-borrower. This is apparently the critical action that removes him of responsibility of this loan. How can I repair this as the loan is now almost $160,000. I don't have consistent work and didn't even receive a degree from this original $18,000 in student loans. My ex husband has a good job and a master degree, partly paid for by the loan that is now in my name. Please help me as the desperation I feel is incredible. I have talked to a lot of people but no one has ever heard of this kind of this and has no suggestions for me.
