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I have a Private Student Loan through Sallie Mae, with a co-signer and I filed bankruptcy. They took my name off the loan.

Kansas City, MO |

After I filed bankruptcy, they took my name completely off the loan, put it in my co-signers name, and it's as though I never had anything to do with it. My original monthly payment amount is around $170/month. However, I lost my job during the bankruptcy...so as stated in my agreement with Sallie Mae, I started paying $30/month, which is the very least they would accept, and I've done so without fail. Even though the said they would accept the $30/month as a payment they still send really rude letters, demanding money and stating the account is delinquent. I will be able to get back to paying the $170/month in September, but there is no way for me to catch up on what they want right now. My question is what is a good faith effort, and what can they do to my co-signer?

Attorney Answers 3


  1. Your co-signer is on the hook, and there is not a lot that can be done about it. Any collection activity they can take against you, they likely can take against that person. When you say "good faith" effort, in what context do you mean?


  2. Sorry to hear this. When it comes to private student loans, bankruptcy does not discharge the debt unless you are able to prove "undue hardship" in court and you must file an adversary proceeding, filing a bankruptcy case alone is insufficient. The undue hardship is impossible for most people to get past. Agree with other counsel, you are both on the hook for this loan and unfortunately the way the laws are structured now people in your situation are stuck and at the mercy of the lender on what terms they are willing to accept in lieu of regular payment.


  3. Really, "completely off the loan"?
    I doubt that, although it is remotely possible.

    You wrote, "My question is what is a good faith effort...?"
    A "good faith effort" is not relevant to most contracts.