Legal Question in Credit and Debt Law in New York

Co-signer on a student loan in nys

I am a co-signer for my son on his student loan with sallie mae. He has gone into default and sallie mae will not work out a payment schedule. They have been withdrawning money out of my sons bank account and now out of mine. $2500.00 a month. Are the authorized to do this??? What can we do? My son has over draft fees from them doing this. And on my end they are takinh out all of my savings. Please advise.


Asked on 12/25/08, 9:14 pm

1 Answer from Attorneys
Paula McGill Attorney at Law

Re: Co-signer on a student loan in nys

Check the contract you signed. You may have authorized the withdrawals.

Second, see if Sallie Mae or your bank sent you papers regarding a proposed charge to your account.

Have you written or called Sallie Mae to demand an explanation in writing? It is possible you can work out something.

Also, have you gone to your bank to demand an explanation and legal documents regarding this debit. If they can't provide you with proper legal authorization for the debit, you should demand that it cease immediately.

If the bank doesn't satisfy your questions, you can close the account to stop thess unauthorized withdrawals. If the bank won't close your account, demand a stop to overdraft protection and withdraw the money in your account.

This answer does not create an attorney-client relationship. Usually, the best way to obtain thorough legal advice is to schedule an office visit with an attorney to permit him or her to review all available paperwork.

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Answered on 1/04/09, 7:23 pm


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