I co-signed on a $50.000 loan for my son to attend pilot school. The loan was taken out with Salle Mae. After one year the school filed chapter 11 bankruptcy. And it is looking like it will now go to chapter 7. My son had only used up 12000 of the loan. The balance of 37000 which the school had is gone. My son cannot afford his loan payment of 470.00 for 13 more years and my wife and I cannot help him. I have lost over 50% of my income. My son and I both have excellent credit.
Is there anyway that we can get his balance reduced? I have read a little about debt reduction but don’t want to get into a bigger mess. Or do you have any other suggestions? Thank you
Sallie Mae has a process to deal with this. They publish a form to be used to request loan forgiveness due to a school closing.
The best thing to do would be to contact Sallie Mae right away and start talking to them about this particular situation. It’s probably going to be an administrative nightmare but at least there is a process.
Please post your responses and follow-up messages to me on this in the comments section below.