Student Loan Default - Is Cosigner's ex-spouse responsible?

[scgremlin]

What is the name of your state (only U.S. law)? Pennsylvania

Hi Everyone,
Need some advice on student debt default. I lived/worked in the US a while ago, but left the US about 5 years ago to work abroad. I still pay my student debt today. My father cosigned many of my loans, but has since also left the US. My question is, if I default on my student loan debt, and they cannot reach me, nor him, is my mother then responsible for the debt as she is the co-signers ex-spouse? They recently divorced, and all of their joint assets have now been split up.

My thinking is that since there are no assets tied to my father (the cosigner), then there is nothing to go after him for. I just want to make sure that legally there is no way that they can go after my mother, who was married and had joint assets at the time of cosigning.

Also, since we're on the topic, is there any way for the US government to actually go after student debt defaulters that have left the country? I know that I won't ever be able to work/live in the US again, but if I never actually have any intention of coming back to the US, is there any worry?

Thanks

 

[Zigner]

In other words, you want to reach right in to the pockets of American taxpayers and steal from them. No better than any lowlife pickpocket preying on folks on the boardwalk.

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania

Hi Everyone,
Need some advice on student debt default. I lived/worked in the US a while ago, but left the US about 5 years ago to work abroad. I still pay my student debt today. My father cosigned many of my loans, but has since also left the US. My question is, if I default on my student loan debt, and they cannot reach me, nor him, is my mother then responsible for the debt as she is the co-signers ex-spouse? They recently divorced, and all of their joint assets have now been split up.

My thinking is that since there are no assets tied to my father (the cosigner), then there is nothing to go after him for. I just want to make sure that legally there is no way that they can go after my mother, who was married and had joint assets at the time of cosigning.

Also, since we're on the topic, is there any way for the US government to actually go after student debt defaulters that have left the country? I know that I won't ever be able to work/live in the US again, but if I never actually have any intention of coming back to the US, is there any worry?

Thanks

No, your mother would not be responsible for the loan as she did not cosign.

Yes, you and your father can still be pursued for the debt. The higher the debt, the more likely it is that you WILL be pursued.

 

[single317dad]

One tool the government recently implemented is that social security payments will not be made to those with defaulted student loans, so if you paid into that system you can kiss that money goodbye.

 

[scgremlin]

In other words, you want to reach right in to the pockets of American taxpayers and steal from them. No better than any lowlife pickpocket preying on folks on the boardwalk.

I was an American taxpayer myself for almost 15 years and had to deal with the same thing. The fact of the matter is, the US govt isnt' doing anybody any favours when it comes to student loans as not only are the interest rates astronomical compared to other countries, but when it comes to financial hardship, you're SOL most of the time as you can only apply for so many forbearances/deferments. At least the federal loans have income based repayment schemes, but for those of us with big private loan balances, we have very little options.

This is why the US has such a massive issue compared to other countries. If the US actually cared about people and peoples' lives, and not only about money money money then things would be different. The US has a lot to learn from other countries when it comes to how it manages the student loan crisis. There's a reason there isn't anywhere near as much of an issue in other Western countries.

 

[Zigner]

I was an American taxpayer myself for almost 15 years and had to deal with the same thing. The fact of the matter is, the US govt isnt' doing anybody any favours when it comes to student loans as not only are the interest rates astronomical compared to other countries, but when it comes to financial hardship, you're SOL most of the time as you can only apply for so many forbearances/deferments. At least the federal loans have income based repayment schemes, but for those of us with big private loan balances, we have very little options.

This is why the US has such a massive issue compared to other countries. If the US actually cared about people and peoples' lives, and not only about money money money then things would be different. The US has a lot to learn from other countries when it comes to how it manages the student loan crisis. There's a reason there isn't anywhere near as much of an issue in other Western countries.

Yet you were just fine taking the money.

 

[scgremlin]

Yet you were just fine taking the money.

I went to university before the economic recession. Things were different back then. You went to the best university you could get into. Mine happened to be out-of-state. If I had to do it all over again, I'd go in-state and focus much more on cost.

You can berate me all you want for asking a mere question. I continue to be a law-abiding citizen, have a credit score of almost 800 and am current on all my debts.

 

[Zigner]

I went to university before the economic recession. Things were different back then. You went to the best university you could get into. Mine happened to be out-of-state. If I had to do it all over again, I'd go in-state and focus much more on cost.

You can berate me all you want for asking a mere question. I continue to be a law-abiding citizen, have a credit score of almost 800 and am current on all my debts.

That's great - I have no complaint with what you've done...I've got a complaint about what you're planning to do.

 

[scgremlin]

That's great - I have no complaint with what you've done...I've got a complaint about what you're planning to do.

Not planning to do anything. Again, was just asking a question.

I'm going through economic hardship right now and I'm just trying to understand what the repercussions are if things hit the fan. Not planning to default - but I need to know what will happen if I do, due to circumstances out of my control. As I mentioned, the lenders that I borrowed from are incredibly unhelpful and I'm starting to wonder what options I have left. I'm in a similar position to millions of americans that are at the mercy of a stupidly designed system that is all about profit and money and little about what is morally right.

 

[single317dad]

I was an American taxpayer myself for almost 15 years and had to deal with the same thing. The fact of the matter is, the US govt isnt' doing anybody any favours when it comes to student loans as not only are the interest rates astronomical compared to other countries, but when it comes to financial hardship, you're SOL most of the time as you can only apply for so many forbearances/deferments. At least the federal loans have income based repayment schemes, but for those of us with big private loan balances, we have very little options.

This is why the US has such a massive issue compared to other countries. If the US actually cared about people and peoples' lives, and not only about money money money then things would be different. The US has a lot to learn from other countries when it comes to how it manages the student loan crisis. There's a reason there isn't anywhere near as much of an issue in other Western countries.

You've been watching the news and jumping on the Elizabeth Warren bandwagon. The fact is that as a student borrower, you took out loans of which the terms were clearly disclosed, and you got a rate significantly lower than an uneducated working couple who took a similar loan to buy a house or car. You can cry "high rates" all you want, but the fact is you got your money very cheaply. That you planned poorly and got a degree (presumably) in a career that didn't need you after an economic downturn is irrelevant. Many, many, MANY people were hit very hard by the recession; to fail to repay the money would be to pass on the cost of your loan to each and every hard working person who does pay their bills, because that's how the entire loan business works.

There is usury and other underhanded activity out there in the loan business, but it is NOT in student loans. You got an exceedingly fair deal compared to the average borrower.

 

[cbg]

So your solution to the student loan crisis is to leave the country and pass your debt along to those of us who are still here. Marvelous.

Yep, we've got a whole lot to learn from you.

 

[scgremlin]

So your solution to the student loan crisis is to leave the country and pass your debt along to those of us who are still here. Marvelous.

Yep, we've got a whole lot to learn from you.

Wow, you people are really good at making assumptions aren't you.

As a matter of fact, I didn't leave the country to pass on my debts. I left the country 5 years ago because I got a job abroad. As I mentioned before, I continue to pay my student debt and am current with all payments. I haven't missed one payment since I graduated in 2007.

So yes, people should learn from me.

 

[Mark Maroon]

Wow, you people are really good at making assumptions aren't you.
As a matter of fact, I didn't leave the country to pass on my debts. I left the country 5 years ago because I got a job abroad. As I mentioned before, I continue to pay my student debt and am current with all payments. I haven't missed one payment since I graduated in 2007.
So yes, people should learn from me.

Look, we all get it. You're a wonderful guy - so far. We just hope you STAY that way.

But you asked a question about doing something because you are considering doing that thing (if things hit the fan...due to circumstances out of your control). So if you had asked: "What will happen if I murder someone in the USA, and then I flee to another country?" Is your defensive response really going to be - Hey man, I haven't murdered anyone YET, and I haven't even ever beaten up anyone, and I would only murder someone if things hit the fan or there were circumstances out of my control or they deserved it because they shouldn't have done what they did, blah blah blah...