Katy Stech of the Wall Street Journal recently wrote an editorial about Kristina Pietras, a student who became burdened with student loan debt before dropping out of the University of Toledo. Various lenders lent Pietras $132,000 in loans. Pietras’ parents had co-signed her loans.
Lenders took Pietras and her co-signers to court, where they argued that she was paying $150 month for a cable television package and recently had new carpet installed instead of paying back the loans. Her parents were paying her cell phone bill at $70 a month while she worked at an Arby’s restaurant.
“The court is, thus, confronted with this dichotomy: the debtors, when incurring obligations on behalf of their daughter, find the means to pay for one obligation but not the other,” wrote Judge Richard Speer of the U.S. Bankruptcy Court in Toledo.
As more and more students find themselves unable to repay loans, the creditors are going after the co-signers. More than 90 percent of student loans require a co-signer. More and more co-signers may find themselves in bankruptcy court if this trend continues. Contact our firm for a free consultation.
Benjamin Brand Services- Chicago bankruptcy lawyers .