Legal Question in Credit and Debt Law in Pennsylvania

Back in 2004, I was living with my girlfriend in Butler, PA. I made the terrible mistake of co-signing an $8,000 student loan for her. She subsequently flunked out of school (after 7 years of pursuing a bachelors degree), and I broke up with her.

I moved to Sarasota, FL a few months later (early 2005). Because my ex-girlfriend flunked out of school, her student loan payments kicked in immediately. I was hounded by the student loan company (Wells Fargo) because she didn't make any payments. I spoke to my ex to try to get her to make the payments but she said she was unemployed and couldn't afford it. I was forced to start making the payments to keep my credit in good standing.

Fast forward 6 years later, and I'm still making all of the payments on her loan. She has not made one single payment in all these years. I've paid over $7,000 towards her student loan, but I was recently shocked to find out that 90% of my payments have gone towards interest (the $8,000 loan still has almost $7,000 left in principal). The loan has a high variable rate, and will cost over $20,000 to pay off at the minimum payment.

I know the loan company considers me equally responsible for paying back the loan, and there's no way to be released from this obligation. However, I read that in the state of Pennsylvania, the actual borrower has the ultimate responsibility to pay back her debts. She should be responsible for repaying me for all the payments I've made on her loan.

I have several questions:

(1) Can this be handled in small claims court? What is the limit for small claims in PA?

(2) In which state do I need to file? I co-signed for the loan in PA, and she still resides in Butler, PA. I live in Florida which makes filing in PA nearly impossible.

(3) Can an attorney handle filing for me?

(4) What's the best course of action to pursue this debt?

At this point, I'd be happy to cut my losses. If she refinanced the loan in her own name, I'd be willing to forgive the amount I've paid on the loan so far. But ideally, I'd like to pursue both repayment and her refinancing the balance.

Any input is appreciated. Thank you!


Asked on 2/01/11, 4:43 pm

1 Answer from Attorneys
Rachel Hunter

NEVER co-sign for anyone. The best thing you could do is get a small personal loan at a low fixed interest rate and settle the debt with the variable interest rate student loan. Failing that, file bankruptcy if the debt is dischargeable.

No way is she going to refinance this debt in her own name. Why would she do so? You cannot force her. If she does not, so what? What will you do? Sue her and get a judgment? If this girl flunked out of school and could not pay, what do you think is going to happen if you get a judgment against her? Unless she has married well and has substantial assets that are owned free and clear, there is no wage garnishment in PA and there will be little for the sheriff to take. Whatever furniture she has will not translate into the dollars needed even if the sheriff takes and sells it.

However, if you insist on pursuing litigation, the limit for small claims was $8,000. For cases over that but less than $25,000, there is usually mandatory arbitration. Its cheaper and quicker if it even gets that far.

You file where your girl friend resides. Everything here points to Butler, PA so you will sue there. And if you sue in small claims, then you have to sue in Butler, PA.

Yes, an attorney can handle this for a fee (should not be all that much). You may have to testify if there is any kind of court proceeding if it gets that far. Contact a local attorney in Butler, PA. I am admitted in PA, but I do not engage in long distance litigation and you will be better off with local counsel who knows the local rules of court, knows the judges and magistrates and can attend if any motions in court are required.

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Answered on 2/02/11, 8:21 am


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