Think again. Here's why:
This is the text of a post to a lawyers' group from a member who is trying to figure out how to help a client:
I need some help with the following scenario:
Client co-signed student loans for “friends” with Sallie Mae. Friends have stopped (or never started) paying on the loans. Sallie Mae has sent client a letter demanding payment. Friends are no longer communicating with client.
I have not been able to find a way to extricate client from the loans absent the original debtor making 24 consecutive months payments AND Sallie Mae agreeing to remove her.
I am trying to determine client’s rights as against “friends.” Can client get a judgment against original debtor and garnish wages because they didn’t make payments?
Yikes -- imagine yourself trying to figure out how to go after a "friend" for an unpaid loan that you co-signed. While the professionals laugh all the way to the bank, you'd be left trying to figure out how to get and collect a judgment against a person with no written contract between you. Good luck with that.
MORAL OF THE STORY: do not co-sign for a loan for a friend or family member unless you could afford to make the loan yourself and lose the entire amount.
I need some help with the following scenario:
Client co-signed student loans for “friends” with Sallie Mae. Friends have stopped (or never started) paying on the loans. Sallie Mae has sent client a letter demanding payment. Friends are no longer communicating with client.
I have not been able to find a way to extricate client from the loans absent the original debtor making 24 consecutive months payments AND Sallie Mae agreeing to remove her.
I am trying to determine client’s rights as against “friends.” Can client get a judgment against original debtor and garnish wages because they didn’t make payments?
Yikes -- imagine yourself trying to figure out how to go after a "friend" for an unpaid loan that you co-signed. While the professionals laugh all the way to the bank, you'd be left trying to figure out how to get and collect a judgment against a person with no written contract between you. Good luck with that.
MORAL OF THE STORY: do not co-sign for a loan for a friend or family member unless you could afford to make the loan yourself and lose the entire amount.
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