Shedding Stress by Shedding Student Loan Debt

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LSS Financial Counselor Katie Eastman, back, works with Julie Killian on student loan repayment.

Only months away from a wedding to her husband-to-be, Julie Killian should have been spending time talking to wedding planners and making sure every last detail of her special day was in order. Instead, she was spending time on the phone with debt collectors, trying to remedy a problem with her loan.

Ten years earlier, Julie was working her way through school. To relieve some financial pressure, she co-signed a loan with her then husband. Always diligent about making sure every duck was in a row, especially the kind with bills to be paid, she made good on each monthly installment — even after she and her husband got divorced and the loan stayed in his name.

Without a hitch, years of payments went by until Julie got a notice from her bank stating that the loan had been forgiven. The language in the notice led her to believe she could stop making payments. Julie assumed everything was fine until she got a phone call from her ex-husband saying that payments weren’t being made and his credit score was severely impacted. Continue reading