Fezmid Posted November 3, 2012 Share Posted November 3, 2012 Mother co-signs a loan. Son dies. Mother doesn't want to pay loan back. From the email I received: "I think it's wrong for the bank to harass me for the loan of my dead son, so I started a petition on Change.org demanding that American Education Services forgive the debt and let my family grieve." And from the site itself: "Nobody told me when i cosigned the loan that I would be forced to pay them back even if my son died. Jermaine never had an opportunity to use his education and I can't use it either." http://www.change.org/petitions/national-collegiate-trust-american-education-services-forgive-my-deceased-son-s-student-loan?alert_id=iUzBTzYfuo_uywkDbItDA&utm_campaign=12794&utm_medium=email&utm_source=action_alert Link to comment Share on other sites More sharing options...
meazza Posted November 3, 2012 Share Posted November 3, 2012 Don't they usually offer insurance in case of disability or death? Link to comment Share on other sites More sharing options...
DaveinElma Posted November 3, 2012 Share Posted November 3, 2012 He took out not one BUT TWO federal loans to study "music production"? This country is doomed. Link to comment Share on other sites More sharing options...
We Come In Peace Posted November 3, 2012 Share Posted November 3, 2012 He took out not one BUT TWO federal loans to study "music production"? This country is doomed. Music production will be an invaluable skill come December 27th, 2012. Link to comment Share on other sites More sharing options...
Doc Posted November 3, 2012 Share Posted November 3, 2012 Music production will be an invaluable skill come December 27th, 2012. "and on the sixth day, God created music..." Link to comment Share on other sites More sharing options...
Nanker Posted November 3, 2012 Share Posted November 3, 2012 . Link to comment Share on other sites More sharing options...
unbillievable Posted November 3, 2012 Share Posted November 3, 2012 If a person can't pay their education loans, then the bank should have the right to repossess their brain. Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 lol no sympathy on PPP Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted November 3, 2012 Share Posted November 3, 2012 Why should the lender be on the hook for the cost of the education? They certainly can't use it either. I'm sorry she lost her son, but he was irresponsible in not insuring his debt with a life insurance policy. That was his responsibility to make sure his family wasn't emburdened, not the banks. Link to comment Share on other sites More sharing options...
Chef Jim Posted November 3, 2012 Share Posted November 3, 2012 (edited) Don't they usually offer insurance in case of disability or death? There a lot of things offered that people are too dumd to understand why they need them. You co-sign a loan you damn well better insure the person you co-signed for. Edited November 3, 2012 by Chef Jim Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 Why should the lender be on the hook for the cost of the education? They certainly can't use it either. I'm sorry she lost her son, but he was irresponsible in not insuring his debt with a life insurance policy. That was his responsibility to make sure his family wasn't emburdened, not the banks. It's true. But there is a predatory aspect to much student loan activity ... this private loan... I don't know anything about it but I doubt it had the best terms and it was piling on after 2 other federal loans for music production co-signed by apparently an old lady that can't pay? Old lady is guilty for stupidity but you feel sorry for her loss and having wanted what she thought was good for her son (that doesn't mean she "deserves" anything necessarily). Bank? Nobody should feel sorry for the bank under any circumstances if they don't get their cash back. Link to comment Share on other sites More sharing options...
Doc Posted November 3, 2012 Share Posted November 3, 2012 I'm no bleeding-heart liberal, but I'd forgive the loan, given the circumstances. Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 Also a 61 year old lady with a 23 year old kid? Link to comment Share on other sites More sharing options...
Doc Posted November 3, 2012 Share Posted November 3, 2012 Also a 61 year old lady with a 23 year old kid? He was 24 in 2009, meaning he'd be 27 today. Likely had problems conceiving. Link to comment Share on other sites More sharing options...
Chef Jim Posted November 3, 2012 Share Posted November 3, 2012 It's true. But there is a predatory aspect to much student loan activity ... this private loan... I don't know anything about it but I doubt it had the best terms and it was piling on after 2 other federal loans for music production co-signed by apparently an old lady that can't pay? Old lady is guilty for stupidity but you feel sorry for her loss and having wanted what she thought was good for her son (that doesn't mean she "deserves" anything necessarily). Bank? Nobody should feel sorry for the bank under any circumstances if they don't get their cash back. Assume much? Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 Assume much? Of course. That said, from the info in her sob letter my heart does not weep for the lender under these circumstances....3rd loan, private loan (so obviously the fed wouldn't put up another for some reason), music production, dead. Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted November 3, 2012 Share Posted November 3, 2012 It's true. But there is a predatory aspect to much student loan activity ... this private loan... I don't know anything about it but I doubt it had the best terms and it was piling on after 2 other federal loans for music production co-signed by apparently an old lady that can't pay? Old lady is guilty for stupidity but you feel sorry for her loss and having wanted what she thought was good for her son (that doesn't mean she "deserves" anything necessarily). Bank? Nobody should feel sorry for the bank under any circumstances if they don't get their cash back. 1) 61 is not old. It's not even retirement age. 2) The fact that she chose to retire early, comprising her social security benefit is no ones fault but her own. So is the fact that she apparently didn't have any other qualified or unqualified assets. It's just the most recent of a long string of poor financial decisions she's made and is now attempting to dump onto the lender she contractually obligated herself to. 3) The loan was not predatory. Her and her son went out in search of the loan, not the other way around. He didn't need to take it out, and she didn't need to cosign. 4) Despite your fiat declarations in opposition, the bank absolutely needs to be made whole. If not, what is their incentive to loan? Bottom line: Don't borrow money you can't pay back. Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 1) 61 is not old. It's not even retirement age. 2) The fact that she chose to retire early, comprising her social security benefit is no ones fault but her own. So is the fact that she apparently didn't have any other qualified or unqualified assets. It's just the most recent of a long string of poor financial decisions she's made and is now attempting to dump onto the lender she contractually obligated herself to. 3) The loan was not predatory. Her and her son went out in search of the loan, not the other way around. He didn't need to take it out, and she didn't need to cosign. 4) Despite your fiat declarations in opposition, the bank absolutely needs to be made whole. If not, what is their incentive to loan? Bottom line: Don't borrow money you can't pay back. I'm not arguing there is anything wrong with what you have just laid out. I'm simply saying, my heart does not weep for the lender here. Every time the don't borrow money you can't pay back comes out, there's the flip side to that... Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted November 3, 2012 Share Posted November 3, 2012 I'm not arguing there is anything wrong with what you have just laid out. I'm simply saying, my heart does not weep for the lender here. Every time the don't borrow money you can't pay back comes out, there's the flip side to that... What's the incentive for banks to lend if there is no absolute expectation of repayment. The woman should have insured her son, and her son should have insured himself. This whole situation is completely their fault. I am sympathetic for her loss, but not one bit for her ensuing hardship. Link to comment Share on other sites More sharing options...
dayman Posted November 3, 2012 Share Posted November 3, 2012 What's the incentive for banks to lend if there is no absolute expectation of repayment. The woman should have insured her son, and her son should have insured himself. This whole situation is completely their fault. I am sympathetic for her loss, but not one bit for her ensuing hardship. There is never an absolute expectation of repayment. If they wanted, terms of the loan could be conditioned upon proof of insurance, it wasn't. What is the incentive to not make every loan on earth if there is no worry about if the people can pay? Once again, all I'm saying is my heart does not weep given these facts for the lender. Link to comment Share on other sites More sharing options...
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