Reply
New Member
Posts: 1
Registered: ‎12-13-2012
0

Parental Student Loan

In 1990, my father took out a parental student loan for my education.  I do not think the loan was federally insured, but I do not know for certain.  My father was the borrower.  My mother was not, and I was not; neither were we cosigners.  A fee was taken out of the proceeds for life insurance protection for the loan.  I started making monthly payments.  My father did not make payments.  In 1991, my father died.  I submitted the death certificate to the servicer and referenced the life insurance.  I stopped making payments.  The servicer did not contact me.

 

In 2001, Sallie Mae contacted me asking for repayment.  I was confused, since I have a loan with the US Department of Education.  I thought Sallie Mae was asking about that loan.  It took a year to figure out they were asking about the loan from 1991.  Their representatives were nasty and rude, but I did not pay.  I asked for proof of the debt, but it was never provided.  Last week, Sallie Mae ran a credit check on me.  The loan does not report on my credit report, but Salle Mae still claims I owe the money.

 

What do I do?

Established Member
Posts: 113
Registered: ‎12-04-2012
0

Re: Parental Student Loan

If you were not a co-signer in any form, you are not liable for this debt. As simple as that. Your father is dead and this debt went with him. Now these CAs will attempt to collect but you need to keep ignoring. Moreover, you can just send them a C&D letter asking them to stop collecting on the debt and never to contact you ever again.
Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,275
Registered: ‎06-09-2008
0

Re: Parental Student Loan

I agree with the other poster, you aren't responsible for this debt.  Now would be a good time to gather any documentation you might still have though, just so you know that you have it.  There's a process for dealing with old debts that's been gone over many times in the Rebuilding Your Credit forum.  It involves asking for proof of the debt (as you've done), and then following up with letters to remove the information from your credit reports and stop the debt holder from contacting you.  I'd poke around over there for templates and more information.

 

Is Sallie Mae harassing you?  If not, and it's not on your report, you could also just go with "let sleeping dogs lie" and just hang on to documentation in case they ever do try to report.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.