collection debt loan student
Click a Flag to Translate the page
 |
 |
 |
 |
 |
 |
 |
 |
 |
Gerri's mailbox
My grandpa co-signed $60,000 in student loans for a relative. My relative is in default. The collection agency is now calling my grandpa. Can they put a lien on his house or threaten garnishment? He is retired living on Social Security. -- Mike
If you co-sign a loan and the primary signer can't pay, you are responsible for the debt. But rest assured, a collection agency cannot garnish Social Security payments.
They can get a lien on his property with a court order, but that's a long shot, according to the Association of Independent Consumer Credit Counseling Agencies. It's more likely they will go after the primary borrower. If you want them to stop bugging your grandfather, send them a letter. And while your grandpa may still be held responsible for the debt, by law, they must stop contacting your grandfather.
More collection debt loan student info
5 Tips: Gerri's mailbox
My grandpa co-signed $60,000 in student loans for a relative. My relative is in default. The collection agency is now calling my grandpa. Can they put a lien on his house or threaten garnishment? He is retired living on Social Security. -- Mike
If you co-sign a loan and the primary signer can't pay, you are responsible for the debt. But rest assured, a collection agency cannot garnish Social Security payments.
They can get a lien on his property with a court order, but that's a long shot, according to the Association of Independent Consumer Credit Counseling Agencies. It's more likely they will go after the primary borrower. If you want them to stop bugging your grandfather, send them a letter. And while your grandpa may still be held responsible for the debt, by law, they must stop contacting your grandfather.