what can i do?

[Anonymous]

i cosigned on two loans so my ex stepson could finish college. all was fine until i started getting late notices in mail of repayment. i of course called him and we talked about it and he said he had called and got the loans deferred.. we do not live at same address and he received his mail somewhere other than where he lived. needless to say i went to the bank two weeks ago and found out my credit score had dropped from 744 to 653. come to find out these loans i had cosigned had been charged off and defaulted. i immediately contacted him and he has started to repay the loans and set up a payment plan..all of this is due to his negligence and not paying attention. is there anything i can do or someone to call ? or is it just a bad deal and i have to live with it. i realize by cosigning im liable but.... i did not receive any notice that these loans were in default. no letters... no voicemails....i am just devastated. he is making payments now. we both live in pa.

[Whitneyy]

The best course of action for both of your credit would be participating in the rehab program since they were already defaulted on. You have to make 9 on time payments to get out of default status and from there your tradelines will either erase completely or update to reflect perfect payment history once picked up by a new lender. After that, you can neogitate how you want the loans with the new lender.

Head over to the Student Loans part of this forum, you'll see more about it there.