Feeling hopeless with private student loan.

[AngelinaCat]

Welcome to the Forum.

I am so sorry to read of your loss, and can fully empathize with your care-giving situation, as I had that with my Mother and aunt.

I am afraid I can't be of much help with your student loans, as I have no experience with one. I am going to say--and I could well be wrong--that I think KeyBank should not be able to go after you Mother, since she was not a co-signer. But I truly don't know.

Someone with more experience with student loans will be coming along before too long.

Did anyone ever go after the Ponzi-scheme school? It would be nice if your money and that of the other victims could be recovered.

We had a *friend*--actually the husband of one of 'Hub's high school classmates try to rope us into helping him with a similar scheme regarding a religious 'school'. He thinks he is a pastor and prophet. We ran from that as fast as we could....

[highspirits]

Well, I got taken by a Ponzi-scheme flight school. My private student loan was made in 2003 with KeyBank and my father co-signed. In 2008 the school declared bankruptcy and made off with the students money, or the banks lost it, who knows, but they left the students with the bill, even signing up students weeks before going bankrupt.

I haven't been working since 2006 and have been acting as my parents caregiver in their home where I live, and they pay my bills in exchange.

The $505 payments became due in 2008 and I, or my parents have been paying ever since. My dad was making a nice amount of money from the 3 retirements he earned in his lifetime, so paying me to be a caregiver was no problem. My dad just passed away this June. This has also changed our financial situation. My mom requires 24/7 care and is on SSDI, so her keeping the house going and having money for her medical expenses and paying my bills is no longer a solution.

I will not be seeing any gainful employment anytime soon, I will be taking care of my mom with my time. My father willed everything to my mother.

I have 62,000 in private student loans, 15,000 in credit debt, and 2,400 for a Fed student loan that's almost paid off. So about 81k in debt all together with a $1,000 monthly payment for everything.

I can't save any money, I can't go to school with this much debt to handle, it feels a bit hopeless. To the point of mulling over bankruptcy.

So what I wanted to ask you good people, will keybank be able to harass my mom over her home even though she wasn't a co-signer? Would this be a good case for adversary proceedings to get the private loan discharged?

The loan was made in 2003 before the 2005 changes, does the law barring private student loans from being discharged possibly not apply to this loan?

I don't have any assets, haven't been gainfully employed since 2006, and can no longer make payments. I'm seeking the advice of you more knowledgeable and experienced people.

I tried to remove my dad as co-signer, keybank said they stopped that option in 2008. I told keybank I was unemployed. I tried to reduce payments, asked for deferments/forbearance and was told no, I need to pay the loan, do whatever you have to do, and if it goes into default that the full balance will become due to the co-signer.

Thank you for your time.