I co signed for my nephew on a student loan. I really didn't thing they would except me as a co signer because I had recently filed bankruptsy and only worked part time. Surprise they did. I was shocked but it was for less then 17,000. A year later my nephew redid the loan and took out more money. Another 20,000. I never resigned anything. Now they say I am co signed on this loan still and it is up to 55,000 because of accrued interest. They also gave my nephew 5 additional loans which thank God my name isn't on. Is what they did legal. Is there any way I could get out of this . Any help is welcome. Payments are over 650.00 month and I make less then 1200 month.

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Originally Posted by barbara7805

... Now they say I am co signed on this loan still and it is up to 55,000 ... Is what they did legal[?]

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Let's put it this way: they are incorrect in saying that you are obligated on the entire loan (assuming there is no specific language in the loan you signed guaranteeing additional loans). Depending on how the loan is figured, you are only obligated on the original $17,000 loan plus interest, etc. not the additional loans.

I have to disagree with AK, Student Loan contracts are different. Because a student will generally go to school for 4 or more years, the initial loan can have funds added to it and you would still be held responsible. You should have read the contract you signed.

As I said, "assuming there is no specific language in the loan you signed guaranteeing additional loans".

Read the contract and see.

You are stuck with the additional loans for your nephew. I hope he does not default on them for your sake.