My 83-year-old mother is a co-signer on a student loan for a nephew of mine.
He has not made any payments on it for the last year or ever. The loan was
charged off debt for the student loan and was sold to a collection agency. Now the collectors have started ringing her cell phone and home phone to demand payment.
How do I start to write a letter of hardship for her since she will never be able to pay this loan back given her income and age, etc.
Is there any hope to stop the calls and demands and harassment from the collection agencies?
Probably the best first approach here would be to contact HELPS, a nonprofit law firm that specializes in assisting seniors.
Your mother would remain as a cosigner unless she filed bankruptcy or negotiated a settlement to get released.
However, if your mother has little in the way of assets, then HELPS can help deal with the collection calls.
A hardship letter is something you can do, but it’s most likely not going to go far.
If she does have substantial assets and wants to negotiate a co-signer release from the loan, you could contact my friend Damon Day.
Until she is extracted from the loan, it will impact her credit report and credit score, but I would bet that it is not of much concern at this point.