Dear Monetary,

My daughter, who lives in Houston, co-signed a student loan for her then-boyfriend several years ago. He quickly stopped making payments and she made the payments to keep her credit score high. I realize she’s now stuck, but is there a way for the creditor to indicate that she’s paying – and he’s not? It bothers me that his credit reflects the payments he hasn’t made.

A frustrated mom

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Dear Mom,

How I would have liked her to write to me herself before co-signing her boyfriend’s student loan at the time. He really did a number on her. Of all the co-signing loans, this is probably the least recommendable. There is no collateral like a house and student loans are almost impossible to pay off. The lender could even garnish your daughter’s salary if no payment has been made. I’m frustrated reading your letter, so I imagine your pen name is a polite understatement of how you really feel. Yet the past is another country, so we have to face the here and now.

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She is in a very difficult situation. Besides appealing to the best nature of her ex-boyfriend – assuming he has one – it’s also worth contacting the lender. According to Advisors, a comparison site for private student lenders: “Some lenders offer an optional co-signer release, if the borrower makes 12, 24, 36 or 48 consecutive payments on time (before the due date). But the lender is unlikely to allow this if his ex doesn’t show he can make the payments. Worse, if your daughter hasn’t signed a death waiver, she may still be responsible for this loan if her boyfriend dies.

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“There are two main alternatives to a formal co-signer release option,” add the eAdvisors. “One is to pay off the debt in full. (But you probably already knew that and that doesn’t help much.) “The other is to use an unco-signed loan to refinance the co-signed loan, such as a private consolidation loan, home equity loan, or bank loan. staff.” This option would almost certainly require the permission of the other co-signer. I still have one: Consult a lawyer on his chances of suing him to reverse the status of co-signer, then ask the financial institution to garnish his salary and / or pay off the debt.

Your daughter obviously trusted this man and loved him. But that’s not always a good recipe for making wise financial choices.

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