Student Loan Questions?

Jason:

You're not going to like this answer, but I'd be willing to wager that the information you're about to read is correct.

First of all, you girlfriend signed for loans. You've acknowledged that she was of legal age at the time, so she's already got a big strike against her.

Let's suppose I borrow $100,000 from Vinnie the Loan Shark, and for whatever stupid reason, I give it to my brother, because he promises to put it in his safe. To my total surprise, when I go back to get the money, he admits that he spent it all on a really wild, once-in-a-lifetime weekend in Vegas. So when Vinnie comes looking for his money, do you think he's going to let me off the hook when I tell him that my brother blew it all in Vegas?

What's he going to say, Jason? I'm betting he says "Ah, what a shame, sounds like you've got a real problem you're gonna have to work out with your brother. In the meantime, I don't give a rat's patootie who spent the money, you borrowed it, pay up!"

Let's change the story and make it a bank that I borrowed that money from. Again - I made the "mistake" of letting someone else take care of it for me, and now it's gone. So do you expect the bank to say "Hey, don't worry about. Stuff happens. We'll just write it off, because you seem like a nice guy."

Your girlfriend owes the money. She might well have a claim against the person who stole it from her (if your parents appropriate your property without your permission, they're just as guilty of theft as anyone else would be) - but she has no legal right to expect the lender to "forget about it" - and they won't offer to, either. Nor will a court of law force them to.

If the person who stole the money from your girlfriend is dead, well, it's going to be pretty hard to collect, isn't it? If her mother died with an estate, your girlfriend had a claim against the estate, but I'm assuming that the estate was long since dissipated, and I'd be willing to bet that it's too late to file a claim now.

Here's the part that I'm having the most difficulty with. You've said that your girlfriend is graduating this December - so that leads me to believe that her college expenses were paid. You're telling us that they weren't paid with the proceeds from these loans, which makes me wonder where the money did come from.

I'm also confused about how your girlfriend was able to keep borrowing, over and over again knowing that her mom was keeping the money. I'm picturing those old Peanuts cartoons now - do you know the ones? Where Lucy keeps talking Charlie Brown into trying to kick the football, despite the fact that she always whips it out from under him at the last second, and he falls on his face?

"Gee, mom. If i borrow $25 grand this year, do you promise not to steal it again? I mean, this is three years now!"

And back to the other question about actually paying the school bills - most student loans have to be certified by the lender - meaning the lender contacts the school every year and says "Exactly how much does she need?". If the school kept saying "$25,000!", how was your girlfriend able to pay the bills if her mother kept misappropriating it all?

I'm sorry - I don't mean to mock your situation, but you're not going to get any sympathy from a court of law. Your girlfriend signed for loans, she got the education they were intended to finance, and she gave the money to her mother, several times, despite the fact that her mother kept "stealing" it from her.

If your girlfriend has a claim, it was against her mother for misappropriating her property. The fact that her mother isn't able to satisfy her claim is not grounds for forcing the lender to forgive the debt. They had no contract with your girlfriend's mother. They have a contract with your girlfriend, and she is responsible for honoring it.

I'm sorry for the disappointing news, but if your girlfriend can't pay, not half as sorry as her grandmothers are about to become. Good luck to you all. I honestly mean that.

I'm sorry to hear about her loss.. I hope I can be a little helpful here, just because I've taken out loans from Sallie Mae and had to get my grandparent to be a cosigner so I feel like I can relate.. All I know is that if you want, there is an option to consolidate the loans which means the loans from both companies are somehow put together and so instead of paying two seperate bills, you pay one, and I think it's supposed to be a lower payement. Also, once you graduate, they are supposed to give you a 6-month "grace" period (basically, to try to find a job with your new degree I guess). I know that while in school, you can defer the loans but once you're out, they come after you (annoying phone calls is the worst of it!) Not sure if a lawyer would help in this situation.. who's name was the loan taken out under? Their credit will be the one to get screwed when/if your gf doesn't pay it back. I think they also have an option where they have income-based payments or something when they lower payments based on how much you make. F**ing loans, man... & I'm just taking a year off right now, I've still gotta go back for 3... ehh good luck!