What are my options?

[Damian4356]

Arizona

Here's the issue, if anyone has any idea what I should do then please reply.

About six years ago when I was 18 or 19 I enrolled in a tech school. In order to pay for the classes I had to get a student loan and a parental loan. When applying for the loans my mother stated that she would not apply for the parental loan unless I agreed to pay the parental loan myself. At the time...I was young and stupid and didn't understand the perameters of that so-called verbal agreement.

I started school and attended for aproximately 3 months carrying a 4.0 GPA and the way the loan process worked at the time was they would make the student and parent re-apply for the loans quarterly. When it came time to re-apply my Mother's credit had turned for the worse and she was not approved for the second loan. Due to the fact that she was not approved and I didn't make enough or quallify to get a full loan to cover the rest of the school costs on my own...I was obviously not approved for my second student loan either.

The school was unable to give me any kind of schollarship or any other means of financial aid, so I had to drop out due to not being able to meet the financial obligations.

I started paying my portion of the Student Loan back about 3 months after I quit school and was finally able to pay it off last year sometime. For the last six years or so I have also been paying off the Parental Loan that my mother took out. There is still about $6,000 left to pay on the Parental Loan.

I don't remember the exact conversation my mother and I had when we first applied for the loans but as I mentioned above there was some kind of verbal agreement that I would pay the loan for her. Over the years I have encountered several financial snags and have missed a few payments, caught up the payments, missed a few payments, caught up the payments and so on and so forth.

As it sits right now I am behind on the payments and my mother is constantly hassleing me about making the parental loan payment. Honestly I don't feel that I should be obligated to pay off the Parental loan anymore. After all, it was a legal binding contract that my mother signed when SHE applied for the Parental Loan. The loan is entirely in her name and it is her credit that it affects. I am currently married and my wife doesn't work so therefore I am the one working to support us. We are also trying to have a baby and I don't see anyway that I would be able to continue paying the Parental Loan after our baby is born. As it is now I can only pay the loan when I have a little extra money that I can afford to throw at it. Supporting my own family and paying our legal binding bills, and keeping a roof over our heads is more important to me than paying a loan that doesn't have any legal obligations to me or my own family. It doesn't go towards me or against me if I pay it or not.

My Mother and I recently got into a very heated argument about the Parental Loan where she stated that she refuses to pay a penny on this loan that was taken out on my behalf and that she holds me soly responsible for making all payments due to a Verbal Agreement that I don't remember. Durring this argument she threatend to take me to court if I didn't continue paying this loan.

After this long post my questions are:
Who's responsibility is it exactly to pay off this loan?
Does my mother have a leg to stand on?
Can she sue me and win because of a verbal agreement I don't remember?
Can I stop making payments on the Parental Loan?
If she does try to sue me, can I counter sue her for the amount I have already payed on the Parental Loan over the past 6 years?
What can I do to protect myself?

 

[Damian4356]

Can someone help me?

 

[racer72]

Who's responsibility is it exactly to pay off this loan?

Legally your mother.

Does my mother have a leg to stand on?

2 of them. Your payment history is good enough to establish you accepted liability for the loan.

Can she sue me and win because of a verbal agreement I don't remember?

From outward appearances, I would say she could be very successful.

Can I stop making payments on the Parental Loan?

Do you hate your mother that much?

If she does try to sue me, can I counter sue her for the amount I have already payed on the Parental Loan over the past 6 years?

You can sue for anything, whether you are successful or not is another matter.

What can I do to protect myself?

I would say continue paying the loan. You have a very weak argument in trying to dump the loan on your mother. You have 2 strikes against you (an obvious verbal agreement, you have been paying on the loan and a payment history). The judge would likely issue strike 3.

 

[Damian4356]

Well now, that wasn't quite the response I was hoping for but what else is new?
Thank you for your input on this matter. It looks like my mother has a full grip around my throught and has no reason to let go until I am choked to death.

I guess it's more important to pay my mother's debt than to attempt to raise my own family. "Sorry kids, I can't afford to feed you. Your Grandmother controls our money."

Yes, I am really beginning to Hate my mother. She has a money tree growing in her yard and she hasn't once attempted to help with any payments. You'd think that a loving parent would create some kind of college fund for their children, or at least help them slightly when it comes to paying for school. Not my parents by any means!!! So now it looks like the money I was going to put aside for my childrens education will be going towards this stupid Parental Loan, thus turning me into my parents.

 

[racer72]

I guess it's more important to pay my mother's debt than to attempt to raise my own family. "Sorry kids, I can't afford to feed you. Your Grandmother controls our money."

That is a cheap shot, not only to your mother but your children. You are placing the blame for your financial problems on your mother and now your children. Go ahead and quit paying the loan, don't be surpised when Mama kicks the bucket in the future that none of the fruit from that money tree is passed on to you.