Private College Student Loan

default private student loans (sallie mae)?

My friend has USD55k co-signed student loans. Due to unemployment, he was not able to make payment and the loans went into default. Since he does not reside in US, his co-signer does not believe his financial difficulties are real and thought he is just trying to evade the loans. He feels really bad for not being able to repay the loan and got his co-signers into trouble. He does want to repay the loan but without any income and insurance make things really hard to even get thu a day and I can tell he has been under severe depression. I really wanted to help him and posted questions here for your advice: 1) with borrower like him (not a green card holder / not residing in US currently), how can he deal with the situation (private student loans with sallie mae in default ) but still care very much to repay the loan and try to minimize the damage caused to his co-signer? 2) if I help him borrow enough money to repay the student loan, will his credit be improved very soon given the fact that he also has another USD20K +credit card debt? he is in the process of job interviewing and seems that he has a good chance to get a decent paying job after two years struggle and financial hardships; if he can get the job, he can definitely get back on his feet and have a fresh start. however, he is afraid background/credit check will affect the hiring decisions. Can anyone tell us a) is paying off the student loans a wise solution ? will it help improve his credit in a very short amt of time so he can pass the credit check for getting a job? (not that we don't care about the credit card debt, it is just too large amt to pay; I will have to try very hard to pool USD55k thu borrowing from banks, friends and relatives for him; the credit card debt with 4 different institutions might have been in the hands of collection agency and we don't have a clue what to do with collection agencies); b) is there any possibility that Sallie Mae is willing to let the student loan amt be reduced if we offer to pay to close the loan? my friend is a good /hard working person and it breaks my heart seeing him thu this. I am thankful for your adivce.

Public Comments

1. Sigh, he already walked out on one co-signer and you want to co-sign for another loan? Let him suffer so he can learn the reality that student loans never go away. You cannot discharge student loans through bankruptcy. They follow for life and beyond (they attach to your estate).