Impact of student loan default on co-signer / what should I do next?

[TonyK]

South Dakota / Minnesota / North Dakota
(I currently live in South Dakota, my co-signer lives in North Dakota, when the loans were disbursed I lived in Minnesota.)

I am newly in default on a private student loan. The amount due is roughly $100,000. My co-signer has no assets to speak of, aside from a bank account set aside by her late husband to provide for her medical expenses. My inability to pay has me concerned that they could seize this money and ruin her life. My question is whether they can take that particular money, and whether I may be further ahead to let it go to collections and try to work out a settlement with the collector with a personal loan before a judgement is handed down.
Thank you in advance

 

[PayrollHRGuy]

Unless the cosigners' assets are held in a very well created trust, yes they are at risk.

Anything you do so they don't go after the cosigner will help her. What that may be will depend on how the owner of the debt and later the collection agency feel like handling. But the owner of the debt could go after the cosigner the moment you default.

 

[quincy]

South Dakota / Minnesota / North Dakota
(I currently live in South Dakota, my co-signer lives in North Dakota, when the loans were disbursed I lived in Minnesota.)

I am newly in default on a private student loan. The amount due is roughly $100,000. My co-signer has no assets to speak of, aside from a bank account set aside by her late husband to provide for her medical expenses. My inability to pay has me concerned that they could seize this money and ruin her life. My question is whether they can take that particular money, and whether I may be further ahead to let it go to collections and try to work out a settlement with the collector with a personal loan before a judgement is handed down.
Thank you in advance

It is better to try to work out a payment arrangement or deferment BEFORE it goes to collection.