I have about $79,000 in student loan debt that I have been paying on for nearly 10 years with very little of my $500 payment monthly going to principle. I am at the point that my family can no longer afford to make payments and meet our basic needs of food, shelter, & healthcare.
Do you have any knowledge on how to get a consigner removed from your private student loans? Also, if I default on private student loans that are not in my souses name and he is not the cosigner, will it effect his credit?
When it comes down to just being unaffordable you have two basic choices. The first is if you have other debts that are preventing you from making your student loan payments then consider bankruptcy to clear the other debts.
If you just can’t afford the required payment then it is what it is and default is at hand. You should read Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan and understand that defaulting has some benefits and consequences.
But I’m of two minds when it comes to the private student loan cosigner situations. On one hand it’s awesome that someone pledged to guarantee the loan and took the risk. On the other hand the cosigner guaranteed the loan and voluntarily took the risk. They did you a service but guaranteed the loan if you could not pay. That’s what a cosigner does, that’s their single role.
If the cosigner is pursued, quite frankly, it’s the situation they signed up for.
So if the cosigner does not want to be dragged into collections and you can’t afford the payments, then talk to the cosigner about help you with the payments or making them. Otherwise, this situation will wind up hurting their credit when the loan defaults.
Basic needs come before loan payments. You must make sure you are in a safe position with food, shelter, healthcare, etc.
As far as getting the cosigner removed, that’s just not likely to happen. You’d have to ask your loan holder if it is even possible. It rarely happens.
One piece of good news, your spouse won’t be personally involved. It’s not their debt.