Cosigned student loan- Sallie Mae won't give ANY loan docs

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Latest post 02-19-2009 1:23 PM by Paddywakk. 9 replies.
  • 02-12-2009 9:39 AM

    Question [=?] Cosigned student loan- Sallie Mae won't give ANY loan docs

    My husband - against my advice- cosigned a private student loan with Sallie Mae for his daughter (my step daughter). She is in default on it and has no intention on paying it off. She doesn't care if we are stuck paying for it.

    We are trying to get copies of the loan documents and figure out how much is owed, try to set up our own online acct to view the loan info, find out what the options are, etc. and Sallie Mae will simply not talk to us nor will they give us any copies of any of the documents. In the end they just end up transfering us a million times -each person saying "no" and then they just hang up on us. I have to believe that this is illegal and that we have rights to the loan documents and rights to information, etc. I just don't know what law to cite or how to get them to give us the documents.

    The step daughter is of no help, she has a drug problem and is very hard to locate and does not care at all about talking to us to try to help the situation. Furthermore, we live in Ohio and she is in Florida. As far as we know, she recently got a job working under the table at a bar so they won't be able to garnish her wages. She moves all of the time and quits jobs almost weekly. So, basically she is no help.

    What can we do to get the loan documents and get someone at Sallie Mae to deal with us?

    Also, I have read that if you consolidate a private loan with federal ones there will be a new loan that does not need a cosignor (which is a way for a cosignor to get off of a loan). I would like to try to do this but without the loan information I have no way to fill out the consolidation application for her (yes, I would have to find her to get it signed, but if I get that far I will track her down and get her to sign it).

    The only leverage against her is that her daughter was taken away by the Florida dept of family services and is being taken care of by the Florida grandparents (DFS wont let us have her because we live in OH) so in order for her to ever get the daughter back (that is if the day ever comes when she decides that she wants to act like a real mother) is to prove that she has a stable job. Once she has a stable job - if it is not too late- hopefully they will go after her not us.

    Any help would be greatly appreciated- we are at our wits end!!!
  • 02-14-2009 12:56 PM In reply to

    Feedback [*=*] re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    If your husband gets sued, he can ask for this info as part of discovery.

    I suspect that the creditor, whether Sallie Mae or a collection agency that bought or has the loan on assignment, really has no legal obligation to give these docs to your husband until it does sue. Frankly, hubby should have requested and kept copies of the documents in question at the time that he cosigned this loan.

    Now, for the really bad news. Student loans, like all other loans, accrue interest even when no payments are made. The interest rate probably was set when the loan was made, but some student loans do have variable interest rates. Therefore, even if you had the docs, you still might have difficulty figuring out what hubby owes.

    If the creditor does sue your husband, it will be entitled to add attorney fees and court costs to the outstanding loan balance in most jurisdictions.

    Moreover, a private student loan has the same protection against routine discharge in bankruptcy as a Federally insured one.

    As for what you have read about loan consolidation as a way of getting hubby's name off the loan, I doubt that Sallie Mae has to agree to it in this particular case. Moreover, SM is unlikely to do so with a defaulted student loan with a cosigner who may, in fact, have the ability to pay. The lender is not going to be "that stupid".
  • 02-15-2009 8:40 AM In reply to

    re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    I agree with Hearst. However, I do believe you are entitled to payoff information as a guarantor of the loan. Make your request is writing, as opposed to over the phone. You do not really need the documents, like her application (which you might not be entitled to at this stage). All you need is the numbers.

    Michael D. Siegel, Esq.

    Siegel & Siegel, P.C.

    One Penn Plaza

    New York, New York 10119

    Phone: 212-721-5300

    email: sieglaw@optonline.net

    website: www.siegelandsiegel.com

    Serving the metro New York area, including New Jersey

  • 02-15-2009 8:28 PM In reply to

    re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    Thanks for your response, but I really don't feel like waiting to be sued to do something. I find it very hard to believe that a cosignor does not have rights to the loan documents. I will just have to find someone who knows the law.

    With regard to the consolidation, of course we are not looking to Sallie Mae to consolidate the loans. I am not stupid (though my husband is for being a cosignor and not even getting copies of the documents). What I was talking about is that you can consolidate a private with a public - such as a FFED consolidation or the like - so Sallie Mae wouldn't be stupid to give us the info we need, they would be quite smart because they would be paid off immeidately.

    I guess I am asking the wrong board of people these questions. I will keep looking for people with the knowledge of this subject matter. Thanks.
  • 02-15-2009 8:29 PM In reply to

    re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    Again, I find it very hard to believe that a person who has to sign the application is not entitled to that application. I guess I would expect a more knowledgable anser from a lawyer. Thanks anyways.
  • 02-15-2009 9:43 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on 01-01-2005
    • CA
    • Posts 6,057

    Feedback [*=*] re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    In all honesty, hubby was he person who cosigned the loan.

    I don't see where the lender legally is required to speak to you. Your name is no where on any of the loan paperwork. If anyone should be making these calls, its hubby.

    I agree with the attorney. Phone calls have gone nowhere. Time to reduce these requests to writing and send them certified mail, return receipt requested. Hubby should sign the letter. I don't think it matters who drafts it.

  • 02-16-2009 12:31 PM In reply to

    re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    Oh, yes, I should have made it clear in the first post. When I said that they wouldn't give us anything, I meant "us" as in me and my husband (the one who cosigned the loan. He has been the one requesting everything and he is the cosignor. So, my problem is that they are not giving the cosignor any of the documents. That would be like a bank not giving you copies of your mortgage loan even though they are asking you to repay it.

    Thanks Karen
  • 02-17-2009 1:34 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 49,150

    re: Cosigned student loan- Sallie Mae won't give ANY loan docs

    Just because you didn't get an answer you liked--don't assume folks here collectively don't know the score--many do and true some don't, but collectively there is a darn good view.

    I frankly don't know if bank needs to provide you with copies of loan if you request same, there are other ways to get them and "no' may be a valid short term response for them. But we're not here to discuss banks.

    As an aside it might even be good news of new holder cannot/willnot find loan documents--if they seek a formal collection action and you vigorously defend and they cannot produce the loan documents you may just have been handed a free pass card. Its not common but its not that rare that loan package details get "lost" when loans are sold. And I'd certainly NOT rush to spell out that I was a cosignor. Why, because if that part of package was "lost" the lender may have some real problems unless you acknowledge liability.

    The fact that multiple people have ducked his request for information suggests to me that holder of the note has a problem they would like not to discuss---I could be wrong--but its a possibility!







  • 02-18-2009 7:35 AM In reply to

    Agree [=|=] This Defense Actually Works

    Here is a link to an article on MSNBC on using the "Prove I Owe You" defense in foreclosures.

    http://www.msnbc.msn.com/id/29242063/?gt1-42003

    While it isn't always successful ultimately it has been working so well there are lawyers traveling the country teaching seminars on how to use this defense.

    Some homeowners have managed to force better loan terms, stayed in their house months to years longer than they could have otherwise, and avoided foreclosure all together. A lot depends upon how sympathetic the judge is as well.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • 02-19-2009 1:23 PM In reply to

    Maybe, Maybe Not

    Depending on how old the loan is AND the practices of the school, it is extremely likely the school has copies of all the documents. I used to work at a school that kept copies of all loan documents until said loans were paid off.

    Poster, has your husband contacted the school for copies?
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