Legal Question in Credit and Debt Law in North Carolina

My daughter lives in Australia and has a student loan in her name. She went to school on Australia, loved it there and stayed, over 8 years now. The bill comes to my house here in the U.S. She wires me the money, I write a check and mail in the payment. If she stopped making the payments, can they go after her living in Australia? or when I tell them she does not live in the country, does not ahve an income here, and is not coming back, can they go after her for not making payments?


Asked on 2/10/11, 10:40 am

1 Answer from Attorneys
Rachel Hunter

I do not think they will go to Australia to collect. However, there are some considerations. Did you co-sign in any way? They may come after you in that case. Will your daughter ever return? Student loans do not go away and they will be there when she returns (it depends though on whether this is a federal or private student loan). Does she own any property here in the US? If so, they may also go after that. It will also screw up her American credit report if she defaults and she may need credit or to establish credit if she ever does return to the US.

Morally, your daughter took out the loans and needs to repay the debt. She should not just stop paying because she is out of the country.

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Answered on 2/15/11, 8:22 pm


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