A parent who can't qualify for a loan gets the eighteen-year-old daughter to take out the loan (ultimately two loans) with a family friend as co-signer. Parent takes more than is needed for school and uses a lot of the money himself, but assures her that he will pay the loans in full. But, whenever he gets upset with her, he threatens to stop paying the loans (which she can't pay; she's just starting to pay off the other school loans that were going to be her responsibility).
Is there a way to get the loans switched to his name (with his consent) without applying for a new loan to pay of the existing two?
2007-07-17 09:57:38 · 3 answers · asked by dashelamet 5 in Business & Finance ➔ Personal Finance
I'm assuming this wasn't a federal loan program because the proceeds and borrowing arrangement would have been coordinated with the college or school. And I find it surprising that the borrowed amount would be high enough to have the parent take so much of the proceeds off the table.
Ultimately, if the loan is in the student's name, then they are on the hook for repayment. Unfortunately, the co-signor acted as guarantor and it sounds like that family friend got a raw deal.
Either way, if the parent consents, you can consolidate loans and change the borrower name during consolidation or just refinance the student loan through a bank and change the name of the borrower, or put the parent as a co-borrower. Many private student loan finance agencies and banks can do this for you.
2007-07-17 10:13:47 · answer #1 · answered by PK 5 · 0⤊ 0⤋
Well of course, IF the parent consents as a co-signer agree to assume the loan, I would guess that the lender will probably allow that, especially since the loan would likely become due and interest would start accruing right away (as opposed to waiting for the student to finish school to start getting paid back).
Any other possible options sound like they might involve fraud claims, lawsuits and lawyers... (misappropriation of the funds for parents use and not for intended educational purpose, duress, etc.) Not a pretty picture...
2007-07-17 10:13:30 · answer #2 · answered by Bryan A 3 · 0⤊ 0⤋
Nope. You signed for it, you are responsible for it.
For the record, this is a pretty rotten thing for a parent to do to their child.
2007-07-17 10:05:29 · answer #3 · answered by Judy 7 · 1⤊ 1⤋
I dunno just answerin questions for points.. Srry :(
2007-07-17 10:05:00 · answer #4 · answered by Anonymous · 0⤊ 3⤋