cosigned student loan

[sprocket454]

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

I'm not sure if this is the right forum but here goes anyway.

I cosigned a student loan for a friend. She started being very late on payments and this was showing up on my credit reports. In order to keep my good credit I made the following VERBAL agreement with her: I would make the payments with my bill pay so that the payments would always be on time. SHE would then pay ME for the monthly payments. You know the rest. She stopped paying me. She now owes me about $1600. My question is, since WE had an agreement between the two of us which was separate from our responsibility to the lender, can I sue HER to get my money back? I know I'm on the hook to the lender, but what about HER responsibility to ME?

 

[Zigner]

Of course you can sue her. However, you can only sue for what you have paid so far. You cannot sue for the entire loan unless you pay the entire loan.

Let's look at reality. If she's not paying the school loan, and she's not paying per your verbal agreement, then what makes you think she can pay you after a judgment?

 

[sprocket454]

Let's look at reality. If she's not paying the school loan, and she's not paying per your verbal agreement, then what makes you think she can pay you after a judgment?

Thanks for the reply!

She can pay it. Maybe not all at once but she definitely can pay it. She seems to have money for trips and she just bought a van for her daughter. Obviously she has twisted her mind into believing she somehow isn't responsible to me for this. I was hoping a judge could give her a good chewing out and bring her back to reality. Of course the judge might chew me out too, but I kind of deserve it for getting myself into this situation.

 

[ecmst12]

Judgements are good for a LOOOOOONG time, so if she can't pay now, chances are at some point in the next 10-20 years, she'll be able to. You shouldn't file now though...you're still paying. Just keep very good records and once the loan is paid off, THEN sue her for the whole amount at once.

 

[sprocket454]

Let's say she just tells the judge that out of the goodness of my heart, I volunteered to pay for her student loan. Is there any reason to believe that a judge would believe that?
Also, I really set no exact terms on how often she had to pay me, but the deal was that if she had to miss a month she could catch up with me as she was able; in the meantime my credit was protected. Is the fact that I have let this go now for almost a year without getting on her about not paying a problem? Does it suggest that I don't really care WHEN she pays me and that she is free to pay me anytime she wants? Is this why I should wait until the ENTIRE loan is paid off to go after her in court?

Thanks for the help

 

[PhlawedPharmacy]

Oh this is bull! Take her to court every year if you have to. Did you ever make an arrangement for "having to miss several consecutive months"? I doubt it. Your repayment plan was intended to be within reason, and this is not. Personally I think you did a nice thing and don't fault you for it, but she needs to do the right thing back.