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Should I Just Stop Paying Navient and Not Tell My Cosigner?

By on February 12, 2016

Question:

Dear Steve,

I have a Naivent private loan in the amount of $56,000 and just recently graduated. Unfortunately since graduating I have been unable to find a job and was forced to put my loan in forbearance. My forbearance will be up in March, yet I still have not found a job.

Naivent informed me that my minimum monthly payment will be $630, which is way more than I can pay. Each time I desperately call to lower my monthly payments they state that if I refuse to pay the full amount they will go after my consigner for repayment. I obviously do not want my consigner to get involved with my inability to pay.

I would like to know if I should take the chance and miss a payment in order for Naivent to work with me or if I should extend my forbearance an additional 3 months in the hopes that I land a job?

Carly

Answer:

Dear Carly,

If you don’t want your cosigner to be impacted then you better just come to an arrangement with Navient.

The cosigner exists so if you are not making the agreed upon payments, if any, they will go after the cosigner for the money. The cosigner guaranteed the full payment on the loan if you didn’t pay.

Right about now you are probably saying, “That’s insane, why would anyone cosign?” If people really understood what they were getting into when they cosigned then they would never cosign. Cosigners have all of the liability and none of the benefit.

So while you are on a payment holiday with Navient, your balance is growing and making your loan even more unaffordable. It might be time to sit down with your cosigner, explain what is going on, and ask them if they would be able to help cover payments while you are looking for a job. It’s the only way the balance will be going down rather than up.

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About 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.

One Comment

  1. Anon Person

    February 12, 2016 at 5:41 pm

    If Navient is willing to extend the Forbearance then do that for sure! But do as Steve said also, because you do not want the cosigner to be surprised. Talk to them tell them your situation and make every effort to stay in complete contact with everyone. If you miss payments there may be penalties added and your credit score will suffer as well! You need to get working ASAP. Even if it is a minimum wage job. (my 2 cents worth) Bob (www.unduehardship-povertyrequired.com)

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