My husband found his Mom co-signed student loans for his nephew. Can they make her pay?

Follow
Share

My husband has POA for his mother after a slight stroke. He's concerned about her money lasting because she has gone from her home, to an assisted living home, to now a board and care. She has retirement and SS dollars coming in, but does not nearly cover the cost. Also funds from the sale of her house make up the difference currently. This has been a long 15 years since the passing of my father in law, the last 3 the worse for my husband as far as caring and arranging care for her with advancing Dementia. It is affecting his health as she is demanding, spiteful and is determined to live to 100 she is now 89 with no major health issues, but her body is breaking down. She had a quadruple by pass 14 years ago and still ticking with no diet or exercise changes. She has given my brother-in-law a substantial amount of money over the years, he has a daughter with major health issues, and also co-sighed student loans for his son. I feel this will be a mess when money runs out with the 5 year look back.

This question has been closed for answers. Ask a New Question.
15

Answers

Show:
It is such a shame that people take advantage of the elderly- COHERES her into signing a check. Most likely the original loan application was FORGED...

I have seen it happen.... What jerks...
Helpful Answer (0)
Report

Sorry about the h-ll comment I made earlier. The government will make your life heck.
Helpful Answer (1)
Report

If she co-signed for the loans prior to her 'impairment'; she is responsible should he default. However, her Estate may be able to take him to court to recover some of the funds - if he has any funds to recover. If she goes on Medicaid - they may go after him under MERP.
Helpful Answer (1)
Report

Knowing all too well about student loans, these loans are tied to federal guidelines and if you default, the government will take any income tax refund you have due and make your life a living h*ll. Yes, she is still liable for his loans since she co-signed when she was competent. She has a great many health issues, but the critical one is that she has a terminal illness, from which no one recovers. God bless you and your husband for caring for her!
Helpful Answer (1)
Report

{Q}Threaten to force nephew to take in and care of grandma if he runs out of money. That will ensure he will pay! :) {EQ}

Works wonders, also tell him Grandma will be delivered to his residence and he will be stuck with caring for her. {no returns allowed :))
Helpful Answer (3)
Report

Toni - I am so sorry you are going through this. Igloo has given a lot of good advice. Hard to follow through, but smart. I co-signed my nephew's BANK loan for college. Unfortunately, he passed in his sleep just before graduation so the loan was put in my name with him as the co-signer, even though he was deceased. His parents quit paying the loan back so I have been paying it to avoid problems with my credit - it was only $50 per month since it was one of many loans. However, all the other loans were government loans and were written off at his death. Now I am unemployed and waiting on my disability application to be approved so I don't have the funds either - it can be quite a mess. Igloo - I wish I had had to go through a course like you are referring to. I also co-signed for my niece's college loan for a government loan (so I would never get stuck with that one) but it didn't have such a program either. My sister also got my dad and his wife to co-sign for yet another loan and I just pray they don't get stuck with it. None of us ever thought they would just not pay for their kids after having gotten us to co-sign. But back to Toni, there is a lot of good advice here, including talking with an elder care lawyer, but the people who have done this before you are the ones that usually know the ins and outs while the lawyers will keep you safe legally. Good luck!!
Helpful Answer (2)
Report

I'd want a lawyer helping with this. ..... good solid advice
Helpful Answer (2)
Report

To those who say the contract is unforceable, it's important to remember it's not the lending institution's responsibility to prove her competent. It would be the family's responsibility to prove she WASN'T. That's no cakewalk.
Helpful Answer (7)
Report

Threaten to force nephew to take in and care of grandma if he runs out of money. That will ensure he will pay! :)

I think the cosigned loan is an unenforceable contract since she was not of sound mind at the time. The loan company can't get any money from her anyway - she's on SS and disability, and once the loan co knows that, they will stop chasing her for payment and pursue the youngster.
Helpful Answer (1)
Report

If your husband's POA is active on account of your MIL's mental incapacity, MIL cannot enter into a contract and therefore any co-signature will be invalid. But rather than screw up nephew's finances by tearing it up, I'd do as Pam suggests and get chapter and verse from nephew about how he's planning to handle his loan - and perhaps point out the contract problem to him, too.
Helpful Answer (1)
Report

This question has been closed for answers. Ask a New Question.
Related
Questions