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How Do We Stop Paying Our Daughter’s Student Loan?

Question:

Dear Steve,

My husband and I have been paying on our daughter’s student loan that is in her name not ours for several years. We paid off our parent loan years ago.

We are retired, 70 and 80 respectively, and can no longer pay on this loan.

My daughter is barely making a living and cannot afford to pay.

How do we stop payment on these automatic deductions from our checking account?

Terri

Answer:

Dear Terri,

The process of stopping payments is fairly easy. You can contact the loan servicer and ask them to remove your account information for automatic debit.

Additionally, you can contact your bank and ask for advice on how to block any further debits.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Stopping the payments from being withdrawn really isn’t the hard part here. The hardest part is going to happen when your daughter starts getting chased for payments.

It is unreasonable to ask you and your husband to continue to make the payments and moving the responsibility back to your daughter might just create conflict and angst. You’ll have to be prepared for that.

It’s not clear from your question if the loan in question is a private student loan. If it is, my friend Damon Day has been helping consumers get amazing settlement deals on private student loans. The offers private student loan lenders have been accepting is shocking.

But that is something you could mention to your daughter.

If these are federal student loans then give me an update in the comments section below and I’ll get pointed in the correct direction there.

The situation is financially unreasonable for you given your respective ages. There is a process to stop the payments. And your daughter can get some help on what to do next to manage her own loans.


Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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