In October, I found out that she stopped going to class and no longer worked on any assignments.
She moved out of the dorm and in with a girlfriend.
Now she has $20,000 student loan debt and no job.
She is supposedly looking for a retail job at the moment.
Im disabled and live onSocial Security Disability.
Im not able to repay her loans.
Should I take her to court if it comes down to her not paying on the loan?
-A.
Dear A.,
Unfortunately,18-year-oldsdont always make the wisest decisions.
Thats one reasonstudent loansget messy so quickly.
Im afraid that youre correct that youll be held responsible for your daughters student loan.
When you agreed to co-sign, you became just as liable for that debt as your daughter.
And its also likely that a lender would come after you for it first.
You may not have much income, but you still have more than your daughter.
Since you co-signed, Im assuming these are private student loans.
(Federal student loans typically dont require a co-signer.)
Suppose you won a judgment against your daughter.
Its pretty much meaningless if she doesnt have any money for you to collect.
Meanwhile, youre still on the hook for payments with the lender.
Id be furious with your daughter if I were in your situation.
Make it clear to her just how dire her actions could be to your finances.
Are you struggling to cope with financial stress?
First, take a deep breath.
Then, take a look at our roundup ofresources to help you manage your stress and your money.
Try not to focus on any disappointment you feel about her decision to drop out of school here.
The goal here is to get her to help out with payments.
That may not appeal to her at first.
But Im guessing that with no job or income, shell wear out her welcome fast with her girlfriend.
Meanwhile, you better ping the lender and discuss your options.
Be prepared to provide documentation showing that you have little income and are on disability.
The National Consumer Law Centers Student Loan Borrower Assistance program is a good resource for understanding your options.
If all else fails, Id suggest contacting an attorney about whether its possible to get this debt discharged.
Student loan debt is rarely dischargeable, even in bankruptcy.
But it is possible in some cases if you could prove undue hardship, typically due to a disability.
You cant undo this decision.
But what you might do is learn from it.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
