I am dealing with a private loan - spoke with McCarthy Law (saw them recommended in Motley Fool article) and they gave me 2 options: refinance the loan over 10 yrs (current payoff is 19 yrs) or let them help me settle, over 4 yrs. I have tried to refinance on my own, but no one will touch it, since I’m not the loan holder, and my son is currently jobless, with a horrible credit score. The 4 yr plan has me paying into a Trust until the debt is settled. I’m so torn, don’t want to get scammed.
Here is a letter I sent to a second lawyer:
My son had several loans from his time at Penn State, that ultimately became one private loan with Navient. The first of his loans was from 2005, when he started college. I cosigned because we were told I would be released after one year of on-time payment. That all happened after he graduated, but I couldn’t get released. Eventually, I gave up trying, because my son was gainfully employed and paying the loan on his own. Along the way, he did take 2 forebearances at Navient’s suggestion, when he had some income troubles. He continued to pay until about 2 years ago, when he had some severe mental health problems, and lost his job. That is when I took over payments, since I was the cosigner, and had that obligation.
From a starting balance of around 90k, we have paid on this loan for about 10 years, and still have a balance of $79k. My current payment is a little over $600/month. I have just learned I am getting a substantial paycut over 2 years, to the tune of a 14% decrease. I have a letter from my employer starting this, and was going to call Navient to see what they could do. However, I read the article, quoting you about private student loan settlements, and thought I’d see if you could help. I totally understand it will impact my credit. I am 60 years old, and was hoping to retire in 4-5 years, without this debt hanging over my head. I am not sure if my son will be working any time soon, and have just resigned to have the debt as my responsibility, much as I hate that.
Any thoughts or help is appreciated, thanks for your time!