Spousal consolidation student loans...a way out?

[Anonymous]

For years I've been looking for a way out of this loan that I hold with my ex. We each pay our portion now and have for years, but we still have a long way to go and I don't want to be left holding the bag. Navient now tells me that I can pay off my portion of the loan (listed separately on the account), get an agreement from my ex that I'm off the hook, and file that agreement (somehow?) with the courts. If ex defaults, I won't be liable. Even if ex dies, I'm not on the hook, they would discharge that remaining amount due to the death.

This seems too good to be true. Plus, the customer service rep slipped and said, "You could file a lawsuit...um, er..." I went in on that statement and she tried to back peddle, but reluctantly admitted that that's what divorced borrowers were doing now. Anyone BTDT?

[Anonymous]

Wait - so you co-signed on a set of student loans with your spouse? Now you want out?

Pay them off.

[Anonymous]

Hahaa imagine what 3 years in the military could do for this problem smh

[Anonymous]

Anonymous wrote:Wait - so you co-signed on a set of student loans with your spouse? Now you want out?

Pay them off.

Op here - I'm confused. My post clearly indicated that I wanted to pay off the portion of the consolidated loan that is attributable to me. The problem, for those who don't know how this works, there is currently no path for a spousal consolidation loan to be separated post divorce. So you are tied to your ex-spouse for the life of the loan. If one party defaults, then you are both screwed if the other party is unable or unwilling to pay the entire amount.

[Anonymous]

Sorry, OP. Anyone else reading this: DO NOT EVER CONSOLIDATE A FEDERAL STUDENT LOAN WITH ANYONE ELSE'S FEDERAL STUDENT LOAN.

Nothing, nothing, NOTHING they may promise you makes up for the protections you lose by doing this.

[Anonymous]

Anonymous wrote:Sorry, OP. Anyone else reading this: DO NOT EVER CONSOLIDATE A FEDERAL STUDENT LOAN WITH ANYONE ELSE'S FEDERAL STUDENT LOAN.

Nothing, nothing, NOTHING they may promise you makes up for the protections you lose by doing this.

Wow yeah i had no idea that one could even do this!?!? Crazy. Good luck OP. I hope you find a solution.

[Anonymous]

Anonymous wrote:Sorry, OP. Anyone else reading this: DO NOT EVER CONSOLIDATE A FEDERAL STUDENT LOAN WITH ANYONE ELSE'S FEDERAL STUDENT LOAN.

Nothing, nothing, NOTHING they may promise you makes up for the protections you lose by doing this.

I couldn't agree with you more now. These kind of consolidation loans are no longer allowed by the federal government. Unfortunately, they didn't give those of us already in them a way out.

[Anonymous]

You could do what you’re considering but it doesn’t stop the creditor from coming after you. Let’s say this was the same facts but with a visa Debt. If Jane and John Sign a document saying that the remaining visa debit is now Jane’s sole liability Because John has paid his half of it upfront, then in the event that chain later defaulted, visa could and will still come after both of you. The reason? Visa was not a party to the new contract. So visa would come after you both and you could turn around and go after Jane to pay back what you overpaid. If she doesn’t have the money, well then good luck.

[Anonymous]

Anonymous wrote:You could do what you’re considering but it doesn’t stop the creditor from coming after you. Let’s say this was the same facts but with a visa Debt. If Jane and John Sign a document saying that the remaining visa debit is now Jane’s sole liability Because John has paid his half of it upfront, then in the event that chain later defaulted, visa could and will still come after both of you. The reason? Visa was not a party to the new contract. So visa would come after you both and you could turn around and go after Jane to pay back what you overpaid. If she doesn’t have the money, well then good luck.

Chain later = Jane later

[Anonymous]

I wouldn’t trust the word of any phone operator on the Navient side. They are so un-informed. Escalate to senior management at Navient and get it all in writing. It may be worth contacting a lawyer who specializes in student loan work.

[Anonymous]

Anonymous wrote:I wouldn’t trust the word of any phone operator on the Navient side. They are so un-informed. Escalate to senior management at Navient and get it all in writing. It may be worth contacting a lawyer who specializes in student loan work.

Sound advice on contacting someone much higher up at Navient. I will do that. I had already found two attorneys who specialize in student loans. Thank you.

- OP

[Anonymous]

More research revealed that the CFPB filed suit against Navient for their shady business practices. There may be real hope in that outcome.

[Anonymous]

Why would anyone consolidate with anyone else?? Even if you didn’t divorce, you’d have to still pay if your spouse dies! I can’t believe a college grad would agree to this!

[Anonymous]

Can you each get an individual loan, and pay the consolidated loan off that way? Like a HELOC or something at a very low interest rate?

Then you each have your separate loans to pay back.

[Anonymous]

Anonymous wrote:Can you each get an individual loan, and pay the consolidated loan off that way? Like a HELOC or something at a very low interest rate?

Then you each have your separate loans to pay back.

Or a personal loan. That’s a good idea.