Ask Terry Questions Divorce decree & student loan

Divorce decree & student loan

By Terry Savage on March 15, 2024 | Credit/Debt

Hope your well. My daughter had co-signed on her ex-husbands student loans which he is not paying. Her divorce decree made him respondsible for the loans. She has reached out to all three credit reporting agencys with this information with no luck. Her credit score as you can imagine is not good now because of this. Does she have any recourse with the agencies and the loan people.

Terry Says

OK, I’m assuming these are PRIVATE student loans, since Federal loans do not require a co-signer.
I’m thinking that she needs her attorney to pressure her ex-spouse to figure out how to refinance these loans in his own name.

If that’s not possible, she needs to contact the lenders and give them documentation that she is not responsible for the balances, per the decree. But that doesn’t mean they will stop reporting the delinquency on her credit report!

Honestly, I don’t think this is going to work. Her name is on the original papers. Her attorney should have handled some kind of paperwork as part of the divorce to get her name off the loans. She can file a statement with each of the credit bureaus, explaining the situation and referring creditors to the divorce documents.

But this a classic case of where all the right intentions come back to haunt her.



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