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Tammy's Story

Tammy* contacted LAWO because she was being sued for a student loan debt that she co-signed for her granddaughter. Tammy is a senior citizen who relies on Social Security to pay her bills. Fortunately, LAWO attorney Joe Stanford negotiated with the lender to dismiss the lawsuit against Tammy, which was a big relief to her. Additionally, Tammy’s granddaughter agreed to start making payments on her debt.

It is important to remember when you co-sign a loan that both you and the primary borrower can be contacted by a debt collector and sued if the debt is in default. You may also see your credit score lowered. If the debt collector wins in court, your wages can be garnished. It is important to get debts out of default to avoid these harmful financial consequences. If you have loans in default, the creditor may be willing to negotiate a new payment plan or accept partial payment to settle the debt.

Federal student loan payments have been suspended through August 31, 2022. That means that debtors do not have to pay during this time period and will also not be delinquent on their loans. However, student loan payments from private banks and lenders are not suspended.

For more information about student loan debt, please visit: Low-income individuals who may qualify for legal assistance involving student loan or other debts can call the Legal Aid Line at 888-534-1432.

*Name has been changed for privacy

About the author

Legal Aid of Western Ohio, Inc.

Legal Aid of Western Ohio, Inc.

Legal Aid of Western Ohio, Inc. (LAWO) is a non-profit regional law firm that provide high quality legal assistance in civil matters to help eligible low-income individuals and groups in western Ohio achieve self reliance, and equal justice and economic opportunity.