hi all,

can someone shed some light on how this will work. my sister in law took out student loans with Chase, she also co-signed for 1 of my student loan for $5,000 with Chase as well-i'm currently in school a full-time and my loan is deferred.

well her and my brother fell on some hard times and she has currently defaulted on her own student loans (which i did not co-sign for, she's on the loan herself..she's been out of school for 10+ years now and just fell behind on payments)

Chase is now calling me and telling me that since she defaulted on her loans, my loans will also become due in full as well unless she starts paying hers. I told them the promissory note i signed stated my loans will be deferred while i'm a full-time student. The Rep. on the phone told me that doesn't matter, since she defaulted on her loans all loans that she signed for will become due, including mine. if that's the case i'm not worried about paying them back, it's a small amount for mine but i'm scared it will mess up my credit. anyone had this experience?

also, i don't know why they are calling me because i was not listed as a reference, could it be that they are calling me because she co-signed for me?

Sounds like private loans.

Yep... your private loan (that she is comaker on) probably can legally be defaulted, based solely on her default on other loans with Chase.

They can't do anything about the ones she didn't co-make, nor any federal loans.

FYI: on private loans, deferments are usually a matter of lender discretion, and they can demand payment in full at almost any time...

wow that sucks, thanks! do you think i'll be able to enter into some payment plan if that's the case? or will they require i pay everything in full?-i can do a payment plan but i dont' have the full amount + the interest. i just don't want it to effect my credit.

If your loan is declared in default, it will affect you. The entire balance will be accelerated and due in full immediately.

that's a bummer. i didn't expect that. will i be responsible for her other defaulted loans too then if she co-signed for mine?!! i guess i have to start saving up so i can pay them if they come after me.

For your loan, 0% BT is your friend. Hate to say it, but it might be your only way to avoid AA. =(

It sucks that your co-signer may mess up your credit history by negging on their own loans, but that's just how these things work.

so i s/w a lady at chase about my situation-she was a lot nicer than the other reps that have been calling. she told me i can't refinance yet since my loan is still in deferrment and i'm still in school. she did let me know they might possibly make my loan due in full. if so what's a good company to refinance with, i only have one loan for $5,000 that i took out Jan. 07.

i was worried about negative reporting on my credit, was told by the Rep. that nothing has been reported on my credit yet (just my co-signer for her loans)..but if i don't pay when my loan becomes due then they are required to report something. whew!..so i guess i just have to sit and wait to see if someone calls me or i get a notice of payment.. i learned my lesson with private loans, or any loans in general!

thanks for your help everyone, esp. Cynic and Lynn.

Hon, you would refinance with a different company, not Chase. You are eligible to refinance a private loan with another company even if it's in deferment if the other company approves you. You could talk to AES, Nelnet, Wachovia, Citi, or any other private student lender about that.

BT= balance transfer. That's when you transfer a balance to a credit card (not a Chase card but some other bank).

thanks cynic.

do you think i'm better off transferring my balance to a credit card or better off to consolidate? i ran my credit today and here's the FICOs i got

TU-675
Exp-700
Eq-703

you think i'll get approved by myself?