Question re: Student Loan repayment taken out in In Law's name...

What is the name of your state? Virginia

My husbands parents took out student loans many years ago so that he could attend college. After he graduated he defered the payments for quite a few years, however, he has been making payments since 2000 with no problems.

Last year my husband and I combined our finances and because he was deployed to the Gulf, I requested loan information from his mother. She emailed me with the balance of three loans, inlcuding the monthly payment amount and the interest rate. When my husband returned he called to request actual paperwork on the loan, including payment history to verify her numbers, at that time he was informed that the loan had been refinanced in May and that the payments had gone down drastically, however all additional money paid toward the loan had been applied to the principal.

In Janaury, after refusing to pay further on the loan without our seeing some sort of paperwork, she sent us the refinancing document, which was one page long and only stated the amount refinanced, the interest rate, payment amount, and the due date of the first payment. She insisted that this was the only paperwork she had. She did write on the paperwork the amounts of all our payments that had been received stating the amount that had been applied to the principal. In Feb of this year we went back to paying the minimum amount on the loan.

When cleaning out my email, I found her original email stating the balance of the loan in February. The amount the loan was refinanced in mid May for was more than the balance she stated in February. After doing some more looking around we gained access to the online account (my husband had the information we needed to reset the password b/c of paperwork for the loans he had when they had considered, but not followed through with, refinancing the loan back in 1999.

We discovered at that time that none of the additional payments (to the tune of $2920) had been applied to the principal. And the loan has not been paid since we began sending only the min. amount in February.

I have requested documentation from the bank be sent to us verifying his mothers numbers of the refinanced amount, and we get nothing except for insults and her getting offended that we don't trust her.

Since there is no written agreement, it is only implied and verbal, I"m really not sure what we have to stand on here, if anything, so any help anyone here has would be great. We have no problems paying back the amount that my spreadsheet (which has a standard loan schedule) says we owe over time, however, I worry that once our documentation says we owe zero they will come after us for more money. Also, we were never consulted on the consolidation of the loans.

Thank you for reading this any any help you have to offer. If you have any questions, I will be happy to answer them.

My husbands parents took out student loans many years ago so that he could attend college"

Are the loans in your husbands name?

The loans are in his mother and stepfathers name and have always been. So the fact that they are not paying the loan has no affect on our credit, and is also why we are unable to contact the bank directly to get statements. Our names show up no where on the loan.

I guess I don't see the problem or the question here.

The question is what are we able to ask for legally, since there is no written agreement. Can we ask for payment history on their part? Or bank statements from the original loans so we can see exactly how much should have been refinanced with our on-time payments?

How can we go about protecting ourselves as we continue to make the payments on the loan schedule based on our over-payments and on-time payments from his parents coming back at the end and saying that we owe more money?

what written records have you kept regarding the payments you have made?

My husband has the majority of the checks that he wrote to her, unfortunatley in the begining when he started to pay everything back, he paid her in cash a few times.

However, since she quoted us the balance (actually for quite a few months before that) we have bank statements that verify that she was web bill paid by her name, with student loan payment in the memo. We also have a written statement she gave us stating how much of our additional payments were going towards the principal, from the time the loan was refinanced through January of this year.

We were thinking the best way to deal with this is to draw up an agreement stating that at least the minimum payment will be made on the loan each month, and if any additional funds are received they will go towards the principal on the loan. We'd also like to throw something in there about using a standard loan schedule to track all payments, based on her february number that she gave me (instead of the actual amount she refinanced the loan for) minus the payments for March, April and May that she stated went directly to the principal before interest began to accure.

Is this a good idea? What would be the best way to go about having her sign this agreement?

Thanks!

What would be the best way to go about having her sign this agreement?

Click to expand...

Tell Mommy Dearest that if she doesn't want to sign the agreement so that your hubby can repay his (ethical) debt, then legally, he is not obligated to pay anything.

WOW!...It's good to see someone on this board that has some morality...

Cause I guess maybe 80 out of 100 would agree (probably more) that this statement is true:

I guess I don't see the problem or the question here

Click to expand...

The loan is not in your husbands name and There is no impact on him credit wise. HE could technically say ..."Screw you Mom and Dad. This is your debt!"... And not pay a thing! Then if they (his parents) choose to.. they could take him to court. Then it would be up to a Judge to decide wether it was His parents duty..or ..it is his obligation to pay them back for the "favor" they did for him.

Personally, I don't see how your hubby's MOM or POP should be under any obligation to give you thier personal finacial records. It IS..after all.... THIER loan...( HIS name is nowhere on it!) they took it out. They have every right to refinance it or do what they please with the loan. It does not affect HIM in any way, other than Hubby's conscience telling him that he owes them.

I figure what she gave you was enough. You want to pay the loan back .....Then all you..... or better yet...Your Hubby needs to know is the payments and when they are due. Then pay them.

After all...Our parents do so much for us..Why bicker over petty things.

Look, Kudos to y'all for doing what is right. But don't let animosity get in the way of your morals. Leave the emotion out of it. You want a buisness agreement... then a buisness agreement doesn't have emotion involved.

Good luck!

The only reason we want the financial records is to prove that payments were made on the loan, so that the amount refinanced reflects every payment that my husband and I have made. Basically to get a starting off point under which to go from, b/c the amount she quoted me in february (down to the cent) was different than what they refinanced for in May, and our monthly payments never stopped. Their refinancing did affect us, b/c now we are paying a higher interest rate than he orginally was paying on the loans.

Again, we have no problems paying this back, and yes, it is their right to do whatever they want with the money and the loan, however, this shouldn't change our terms and conditions of the loan (I wouldn't think). I guess we should have kept up with our originally agreed upon payments instead of adopting her new payment schedule.

We are just trying to protect ourselves from their coming back at us for more money when our records state the loan is paid off in full, and it seems the only way to do this is via signed agreement.

Am I correct here? & if so, how would we go about doing this with as little headache as possible?

Thank you-

Christi

OK simpler terms........You DO NOT OWE JACK SH*T on this loan....

It s all "Cool" If you want to pay it back....HOWEVER the MIL( your Hubby's MOM) DOES NOT have to give you any info other than ....payment and date!!!!.....If you don't agree ...DON"T PAY!...... It is that simple!!!

What part of this don't you understand?

FINE!!!!..You have records you payed....Well congratulations...You have made payments to a debt that is not yours!...(moralaly right That you should pay.... maybe/sure ) BUt legally NOT YOURS!

You are taking it too far.....Like you are TRYING to make a statement of being a good person.....WELL SCREW IT!....Either they like you or don't.....Who cares???????

IF they don't want to sign ......then like Krispie said...screw them!....Thier names are on the loan ...They are the ones on the hook!

I would like to hear from Hubby...Seeing as how this is HIS situation.......

I think it is amazing...IF Hubby thought it was such a problem ...Then why didn't he post?

Wow.

My husband isn't here posting b/c he's in the Navy, and is out to sea, last year when all of this was happening he was deployed to the Gulf, so like most military wives, at some point in their life, I'm left to deal with the finances on my own. He doesn't have internet access, only access to the email he has through the ship, he's at the end of his rope, I thought I'd ask about our situation here so when he does get home we can go from there.

He doesn't speak to his parents. He hasn't really except for about this, since they kicked him (and his grandmother) out of the house (he was back at home working for the recruiters office until his school started, and was not getting BAH to put towards an apartment) for taking his grandmother to a party for his neice that his mother wasn't invited to.

Whenever they speak it turns into name calling and such, since nothing gets resolved that way, we spoke with his mother and explained that because he is gone so much and nothing is resolved when they talk, it would be best if I delt with this issue, as he is not always avaiable to call or email them about things and when he does it doesn't result in anything.

I could care less if they like me, I've never met them, only emailed and spoken on the phone a few times, and I'm fine with not dealing with them ever again. My concern is protecting my husband and myself and our paying on this until we feel it's paid off based on payment schedules versus what they are going to think we owe based on the fact they are not keeping track of payments and using the extra money that was sent to finance their lifestyle.

I asked if the best way to deal with this was a signed agreement...and if that is the best way, should we see a lawyer to draft this up or should we do it ourselves and try to get them to sign it?

Christi, here's a suggestion that may end this once and for all. Can you (or your husband) get a loan for the remaining balance, then pay Mom & Dad off? That way, you're in the clear legally and morally.

I could care less if they like me, I've never met them, only emailed and spoken on the phone a few times, and I'm fine with not dealing with them ever again.

Click to expand...

**Damn...I wish that was all the contact I've had with MY inlaws!They expect my Blood signature on anything I write!!!..lol!

My concern is protecting my husband and myself and our paying on this until we feel it's paid off based on payment schedules versus what they are going to think we owe based on the fact they are not keeping track of payments and using the extra money that was sent to finance their lifestyle.

Click to expand...

***So are you pissed they have extra money?

LOOK like was posted before ...your MIL HAS NO OBLIGATION TO TELL YOU OR SEND YOU THIER FINANCIAL RECORDS!!!!...Ther loan is in THIER name......Although it was for the Hubby..Y"all HAVE NO OBLIGATION TO fufill the loan!

The ORIGINAL payment ..VS..the refinanced payment is up to y'all to construct.....WE CANNOT TELL YOU ALL WHAT IS RIGHT!!!!!
see my previous post for the answer
BUt hell...if you want to repay it....then PAY IT!...If not then Don't!
.
It does not matter...AND IT DOES NOT CONCERN YOU! YOU are a total bystandard in the situation....nothing more.

Damn...I just don't see how hard it is to comprehend the situation!...Either y'all pay or don't...don't matter....It is HIS parent's loan on thier name!....If y'all think it y'alls moral duty to pay... then PAY!...WHO gives a rat's behind about the rest......Do you honestly think that your hubby's parents haven't done enough to deserve the extra?

You know I was all for ya....Untill you kept whining...WHEN THIS IS NOT YOUR PROBLEM!!!!!!...It is your hubby's.......I am glad that you have morals... but you turned it in to sefishness.....All you think is about YOU...How it will affect you ..NOW THAT YOU HAVE COMBINED RESOURCES..not that it mattered until then.. QUOTE]Last year my husband and I combined our finances [/QUOTE]

See now IT matters TO YOU rather then before cause..Y'alls finances are combined.....before that it didn't matter did it?...seeing as how...IN YOUR WORDS..

My husbands parents took out student loans many years ago so that he could attend college. After he graduated he defered the payments for quite a few years, however, he has been making payments since 2000 with no problems.

Click to expand...

OK,HOW IN THE HECK DID YOUR HUBBY ( without Ma or Pa's assistance) defer the payments when he was not on the loan???? And He ( your hubby) , not know the particulars on it?


.

. My concern is protecting my husband and myself and our paying on this until we feel it's paid off based on payment schedules versus what they are going to think we owe based on the fact they are not keeping track of payments and using the extra money that was sent to finance their lifestyle.

Click to expand...

OK..so you are pissed they got the extra money ..and y'all didn't?

IF what you explain is true...then MIL will not sign...So then it comes to whether you pay or don't pay.....It doesn't matter...


Better yet it is not your concern..It is between the Hubby and HIS parents.

Write it out...Follow the original agreement.

Christi –

I would suggest that your husband write his folks a letter detailing the terms of your original agreement. Whatever that may have been. I infer that he agreed to repay the loan at the original terms / conditions set by the lender at the time the loan was given. Whatever those may have been.

Indicate in the letter (to the best of his understanding) exactly what those terms (principal/interest) were and how (payment schedule) he intends to repay the loan. Specify the amount (principal/interest) that you have paid to date and the remaining balance.

Remind the parents in the letter that the original loan is an obligation between them and the lender and that any change in THEIR repayment through THEIR actions are between THEM and their lender. Your husband is only responsible for his agreement to repay his parents, not any subsequent refinancing or lack of payment between his parents and the lender.

Send a copy of your payment schedule with a history of payment and running balance. Pay by check. Document everything and keep a copy of all correspondence and all payments. Send THIS letter certified mail RRR.

This will help ensure that there is a ‘meeting of minds’ on the issue of repayment of the loan between your husband and his parents. You can feel good that you are paying off HIS debt and stop worrying about his parents toying with the original agreement. If it ever came to court, you will be able to substantiate that you have fulfilled your part of the agreement.

I agree with FREEDOM that you (the spouse) should steer clear of this whole issue – for obvious reasons. Good Luck.