Cosigned Long Ago
Mark made a boneheaded decision four years ago and co-signed on a student loan with his then fiance. Now she wants him to pay…!
QUESTION: Mark was engaged four years ago and he cosigned on $20,000 in private student loans for her. She left and has graduated, and now wants him to pay half of the balance. What happens if he doesn’t?
ANSWER: Other than her being ticked about that, I suspect that if she doesn’t pay it will damage both of your credit ratings. If the debt isn’t paid, they’ll sue you. That’s why it’s bad to cosign. This is ridiculous, and unless you feel a moral obligation to pay this money, I wouldn’t do it. Offer her $5,000 cash if she refinances in her name only and gets it out of her name. If she doesn’t take that, tell her to jump in the creek. Just remember, though, that if she doesn’t pay, they’ll come after her and you.