Student Loan Defense
We frequently hear from parents who want to help their children with their students loans by cosigning on these loans. Many family member have the best motives for wanting to help, and may want to pay a student's loans for them. We do not recommend, however, family members co-sign loans.
We have seen families destroyed by students who cannot go on to make monthly payments, leaving all parties with destroyed credit, and the co-signer as the defendant in a lawsuit.
If you want to have payments withdrawn from your account, that is wonderful. You are in control of the spigot of funds withdrawn monthly. But, do not sign on the "dotted line." Unlike many other loans, if the student is not paying the loan, the cosigner could be responsible for many years of payments. Voluntarily making payments deserve accolades. But, involuntary payments are painful when they are required because the student has wandered off and moved to another state.
It is important for our clients to understand, if the student is not paying the loan, the co-signer could be responsible for many years of payments. Voluntarily making payments deserve accolades, but involuntary payments are painful when they are required later on. This also applies to co-signing a car loan.
Student loan debt is not dischargeable in a Maryland bankruptcy unless you can prove that you cannot work. Certain rules will allow a federal loan to be discharged because of disability.
We invite you to contact us or call our office at 410.385.2225 or 800.385.2243 for a complimentary consultation to see how we can make a difference for you.