I am a 76 year old retired professor. I was not educated in this country and my daughter took out all her own loans for her education in the nineties. So in the last five years with out realizing what I was getting into I co-signed for an educational loans for one of my mentees to get an MFA from a private arts school in California.
One year after graduating this woman disappeared leaving the Sallie Mae to go after me. On occasion this young woman will show up make a payment and/or request economic forbearance (when we harassed her enough) all of which is showing up on my credit rating as well.
Eventually I just locked in a rate and started an automatic payment program rather than waiting for the harassment from SM when they couldn’t find the primary borrower. I co-own a paid off property in New York City with my daughter which I just refinanced to do a debt consolidation so that we could pay of HER educational loans and get her credit up, as well as fix up the house so if we need to sell to get me into an assisted living we would have the capital and she would have the credit rating to take her share and invest in another property.
I would like to use a portion of the refinance to pay off the Sallie Mae loan of this other woman (that I co-signed on) but I am hoping to negotiate for a lower principal, I have received some legal advice that the only way to have any real leverage is to let the loan go into default and then attempt to negotiate. This will of course mess up my credit but as my daughter and I just refinanced and her credit is now up to par I may not be needing the stellar credit I have had all this time.
Should I attempt to negotiate with Sallie Mae before going into default, should I wait and/or is there no hope at all in getting a lower principal.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.Can You Show Me How to Settle My Sallie Mae Student Loan Debt I Cosigned For? - Alexandra by Steve Rhode