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Legal advice needed - Sallie Mae loan

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  • Legal advice needed - Sallie Mae loan

    I'm embarrassed to post this thread, but that is exceeded only by my anger and I know that there must be some attorneys or aspiring JD's in our community of members who might be able to help.

    My mother lives on a fixed income receiving social security benefits which include my deceased father's benefits. Apart from that, she had some money from th sale of her mobile home a few years back, half of which was wisely tied up in low risk money market funds.

    One of my siblings, a sister who is fast gaining pariah status in my family, went through a period of unemployment a year ago. Because of insubordination problems, she is serially fired from one job to the next and she almost never qualifies for unemployment.

    She turned to my mom and before any of us had realized what was going on, she bled my mom's savings to zero balance in a short 2-3 months. During this time, she refused to take lesser paying jobs until my mom simply had no money left to give her. I and my other sisters were irate because this particular sister has a history of "borrowing" money with no intent to repay. She has a poor credit rating following as many as two cop-out bankruptcies in the last 10 years.

    I just found out today my mother is being harassed by collection agencies for a Sallie Mae student loan the same sister convinced her to co-sign on a few months ago, again sans the knowledge of anyone in my family. My mother is 71, has battled multiple sclerosis most of her life, and has experienced one major stroke and 2 TMI's in the last ten years. She receives a heavy medication dosage daily, including Aricept to help her with dementia.

    I hope to have my mother excused or removed from liability for the loan based upon her medical history and her existing dementia (senility, not Alzheimers), and the clandestine manner in which my sister obtained her signature. None of us are appointed Power of Attorney for my mom's finances, but that will change following this most recent revelation.

    In the meantime, for you legal professionals, what can we do to arbitrate my mother's removal with this loan? First of all, can we? If we present medical historical documentation and doctor's statements, both past and present, will this help the process? This is subject to California state laws, if that helps. Small claims is out of the question, my mother is bound by deep Christian convictions (God bless her!) and strong sense of family that would preclude her from suing her daughter for damages.

  • #2
    Re: Legal advice needed - Sallie Mae loan

    I can't help you. but I am very sorry to hear this. Not only is it hurting you and your Mom but your sister seems to be tearing your family apart.

    Andy
    Keeping MOL family friendly! If you need help or have a question, don't hesitate to shoot me an email or PM. 101impala@gmail.com
    Andy M. Moderator

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    • #3
      Re: Legal advice needed - Sallie Mae loan

      Well, I'm not a legal professional, but I do work in commercial loans. I can give (at best) a general knowledge that may or may not help you.

      First, if it is a school loan, it is likely an unsecured loan. That can be a good thing, because they don't have any right to "take" anything from her.

      Second, because of the manner in which her signature was obtained, it is very likely that it can be argued that he signature is not actually a valid signature (for these purposes.)

      I have a friend about to graduate from law school. I will ask him what he thinks about this. But to me, it sounds like you may need to get a lawyer in order to dispute anything that the collection agency may do. (Such as negatively affecting credit score.)

      I'm sorry this happened to your mother. That is really unfortunate that someone would put themselves in front of their own mother and do something like that.

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      • #4
        Re: Legal advice needed - Sallie Mae loan

        Hi CC,I can't give any advice either,but real sorry to hear about the position you and your mother are in.I hope you can get it sorted out.

        TOP

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        • #5
          Re: Legal advice needed - Sallie Mae loan

          Sorry, I don't know anything about matters like this, but I do hope you get this sorted out. Have you ever heard of Dave Ramsey? He is a well known financial aid counselor, and he has a radio program. You can email or call him during the show and he will try to answer your questions on the air. Here's the link to his website: http://www.daveramsey.com/. Hope this helps!
          Shane
          1995 Oldsmobile Cutlass Ciera SL

          If you trim yourself to fit the world you'll whittle yourself away. - Aaron Tippin

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          • #6
            Re: Legal advice needed - Sallie Mae loan

            I think small claims is your only legal action. Or you can tell me were she lives.

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            • #7
              Re: Legal advice needed - Sallie Mae loan

              Thanks guys, I appreciate your sentiments. I am really ticked that my mom's finances have been used in this manner, and it's not the first time. Another sister and her husband manage my mom's finances and make sure she pays her bills every month, but it's really getting to the point where we need someone as her power of attorney.

              The worst part was after my mom's savings were depleted, the sister in question was warned not to repeat her actions. But she found a back door and secured the school loan which, if Sallie Mae paid the loan as a check to her, she could have spent on anything. Last I heard she never finished the course for which she signed up. What really gets me is that she flat out lied to me when I asked how she was paying for a course at Phoenix University. She told me that it was covered by her unemployment benefits.

              Comment


              • #8
                Re: Legal advice needed - Sallie Mae loan

                Originally posted by photoryan View Post
                Well, I'm not a legal professional, but I do work in commercial loans. I can give (at best) a general knowledge that may or may not help you.

                First, if it is a school loan, it is likely an unsecured loan. That can be a good thing, because they don't have any right to "take" anything from her.

                Second, because of the manner in which her signature was obtained, it is very likely that it can be argued that he signature is not actually a valid signature (for these purposes.)

                I have a friend about to graduate from law school. I will ask him what he thinks about this. But to me, it sounds like you may need to get a lawyer in order to dispute anything that the collection agency may do. (Such as negatively affecting credit score.)

                I'm sorry this happened to your mother. That is really unfortunate that someone would put themselves in front of their own mother and do something like that.
                I appreciate that Ryan. Thank you for your input and offer to ask your friend.

                Comment


                • #9
                  Re: Legal advice needed - Sallie Mae loan

                  Originally posted by Maserati Mario View Post
                  I think small claims is your only leagle action.
                  Unfortunately, not an option. I wanted to file a claim after the episode with my mom's savings, but my mom will absolutely not take legal action. She also gets flustered and confused too easily and she would probably say anything, including statements favorable to my sister's position, to end the questioning. I think it's an aftereffect of her stroke, her thought process is not as quick as it once was.


                  Originally posted by Maserati Mario View Post
                  Or you can tell me were she lives.
                  Stay tuned!

                  Comment


                  • #10
                    Re: Legal advice needed - Sallie Mae loan

                    Originally posted by ClearlyCoated View Post
                    I appreciate that Ryan. Thank you for your input and offer to ask your friend.
                    He's looking into it. He's pretty busy working for a judge right now, but I think he's up to the challenge of figuring it out.

                    Comment


                    • #11
                      Re: Legal advice needed - Sallie Mae loan

                      Originally posted by ClearlyCoated View Post
                      I just found out today my mother is being harassed by collection agencies for a Sallie Mae student loan the same sister convinced her to co-sign on a few months ago, again sans the knowledge of anyone in my family. My mother is 71, has battled multiple sclerosis most of her life, and has experienced one major stroke and 2 TMI's in the last ten years. She receives a heavy medication dosage daily, including Aricept to help her with dementia.

                      Unfortunately there's nothing you or your mother could do to release herself of the liability. Your mother is a capable adult and the court would most likely deem that she knew what she was signing when she co-signed the student loan for your sister.

                      The parties involved in this situation are the collection agency and your mother. Sallie Mae is no longer involved in this case because Sallie Mae has sold its receivable to the collection agency. As a guarantor, your mother holds the most liability for the loan. More so than your sister at this point as she has already defaulted the loan. A liability could not be simply released from the liable party just because it has good excuses. However there are a couple of tactics that may help her.

                      One thing she could do is to prove that she was not consciously aware of what she was signing and that she had no knowledge of ever signing anything. To do that she could use her medical condition to prove that she was unconscious or was under the influence of medication when she signed co-signed the loan. The other common legal defenses, duress and coercion, are out of the question.


                      If you want to remove the liability for your mother, my advice is that you pay out the loan for your sister and settle the payment terms with your sister. Unfortunately the court would not act as a mediator between you and your sister.

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                      • #12
                        Re: Legal advice needed - Sallie Mae loan

                        Hey 3Fitty!!!!!!


                        Where are you???????


                        Andy
                        Keeping MOL family friendly! If you need help or have a question, don't hesitate to shoot me an email or PM. 101impala@gmail.com
                        Andy M. Moderator

                        Comment

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