I have student loans ... in someone else's name.
February 1, 2012 11:34 AM   Subscribe

I have student loans in my ex's name. Can I buy them back into my name, and how?

When I was in college and taking out student loans, I was engaged to a wonderful person. She had better rates on her loans, so we just took them out in her name. It was a dumb idea that seemed to make sense at the time.

Fast-forward several years: we're no longer together, the loans are still in her name, and it's not a good situation for either of us.


Complicating factor: I made another dumb choice that made sense at the time and maxed-out several credit cards. (Why credit card companies gave a 19-year-old liberal arts student $30K of credit is another matter entirely...). Of course I couldn't pay them back, so I went into financial hiding for several years, with all the associated defaults on my various loans.

Since then, I've declared Chapter 7 bankruptcy and busted my ass to get my personal student loans back into good standing. But I effectively have no credit, which makes things complicated.


Is it possible to buy/transfer/otherwise shuffle my percentage of those loans into my name, so that we're finally untangled and our finances are legally and realistically our own responsibilities? How do I do this?
posted by fracas to Work & Money (4 answers total)
 
I'm pretty sure that what you do, is, you figure out how much money your share comes to (by mutual consensus, ideally) and you give her that much money.

Don't have that much money, you say? Well, then take out another loan in that amount and transfer the money to her at that time.

Trouble getting a loan of that dimension? Now that is a sticky wicket. The short answer is almost certainly no - a lender who made a loan to a person with a great credit rating (her) is not going to be willing to "transfer" that loan, with the good interest rate and all, to a person with much weaker credit (you). Essentially they will be re-issuing the loan and they will need to do it given your current financial position and credit rating, since now is when you are requesting the money.

If you are still a student, maybe you can consolidate into a new loan? For the sake of settling things, giving your ex a lump sum and being done with it is strongly preferred if you can make it happen in any way.
posted by rkent at 11:46 AM on February 1, 2012


Is it possible to buy/transfer/otherwise shuffle my percentage of those loans into my name, so that we're finally untangled and our finances are legally and realistically our own responsibilities? How do I do this?

In general, no She most likely got better rates on the loan because the lender thought she was more likely to pay them off. They gave her the loan at those rates counting on her being legally responsible for paying them, and they are not going to let her out of that legal obligation to transfer the debt to you. From the lender's perspective, she owes the money and your personal agreement with her does not matter at all. The only way you could do something similar would be to take out a personal loan for the same amount and give her that money in cash, but as you said your financial situation basically makes that impossible. Basically she is going to be stuck with this debt until you can pay it off, one way or another.
posted by burnmp3s at 11:57 AM on February 1, 2012


Can you afford to at least make payments on this to her so that she can stay ahead of the interest?
posted by BlueHorse at 9:28 PM on February 1, 2012


Thanks for your responses.

I CAN make payments to her, but at this point getting everything separated would make everyone much happier (see also: interpersonal drama).

hmm. Sounds like my best option is to figure out how to get my hands on some cash, likely a personal loan from someone, and give her a lump sum. I'll also give Sallie Mae a call and see if they have other options. (If so, I'll post them here.)

Again, thanks for your responses.
posted by fracas at 8:13 PM on February 6, 2012


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