Cosigner on Student Loan

Question: What can be done if my son defaulted on a student loan which I co signed for and is now in the collection process?

Answer: The answer depends on who is trying to collect the loan. In some cases, you are dealing with a debt buyer who cannot even prove that they are the holder of the loan. Others should be settled or rehabilitated. Also, note that under Illinois law, a cosigner is entitled to written notice of the principal debtor’s default before any collection activity (including credit reporting) is undertaken, so that the cosigner can protect his or her credit; noncompliance may bar any claim. 815 ILCS 505/2S. Our firm may be able to assist you.