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Home > Ask The Get Out of Debt Experts > I Cosigned for a Private Student Loan and The Loan Has Gone Missing. – Jan

I Cosigned for a Private Student Loan and The Loan Has Gone Missing. – Jan

“Dear Steve,

I cosigned a private school loan for someone, and upon being due she defaulted and I have been paying the payment now for about 1 1/2 years each month to the prior loan servicer AES.

She never paid a payment, and has recently filed Chapter 13, and when I went into the AES site to make this month’s payment the loan was “zeroed” out.

I called AES and they told me that in a situation where the borrower goes Chapter 13, the loan gets returned to the originator, and they informed me that it is TERI. They also said that “NCO” was handling the loan, but I called them and they had no record of either mine or Dvorak’s SS numbers for any loan. TERI’s email and phone number on their website are bad.

I have been paying this loan every month to safeguard my 815 credit rating. I want to keep making payments, but I do not know where or to whom I should send payment.

Since the borrower has gone Chapter 13, I fear that the new loan handler will not contact me as indicated by law, and I will ultimately “miss” payments and endure a negative credit report.


Woman in safari hat looking through binoculars

Dear Lynne,

Since it is a private loan there is no national database like there is for federal loans. The best bet is to pull a consolidated credit report and see who is reporting the loan. If the loan was recently moved it might not be updated but that will at least be your best shot at tracking it down.

Additionally, you could call AES back and ask them for the TERI contact information they use.

What’s interesting is that if the loan holder filed a chapter 13 bankruptcy the student loan would have to be listed as part of their debts and the court might have included that as part of their payment plan.

We obviously need to find the servicer now and solve the mystery.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
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.
  • Lynne

    Well, here’s a follow-up. I just got a copy of my credit report, and the AES/NCT loan comes up as “closed”, “charge back” and “negative key”. Under the payments, all is green except for the last month which is red. My credit rating went from 815 to 775. I’m not sure what all of this means. I still have not been contacted by anybody regarding payments.

    • Steve Rhode

      It sounds like it is still in transition. To stay alerted to changes you might want to subscribe to some consolidated credit report monitoring service or use the free single bureau monitoring from

      It sounds like this loan is still in transition if it lists AES as the owner and they say they don’t own it anymore. They might have charged it off and sold it to a debt buyer.

      A charge off is an accounting function, the loan is still 100% collectible.

      Get some type of monitoring to try and avoid any surprises. Till we get this resolved it is going to drag down your credit score.

      • Lynne

        I have joined a credit monitoring program. Question, will my credit plunge further, or is that it? There is no other mention of any loan, collections, or anything else at this time on the report. Thanks!

      • Steve Rhode

        We will just have to watch it. If it surfaces as a delinquent account or keeps being reported currently delinquent the it will bring your score down.

      • Lynne

        Well, it is marked closed, and I would hope that a new company taking it over would contact me first for payment before any negative marks can be placed on my credit report.. Crazy how someone else’s Chapter 13 can hurt my credit! Thanks!

      • Steve Rhode

        The ultimate lesson to be learned, never, ever, ever cosign.

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