Student loans are one of the most hairy issues throughout the United States. This can be true until people start losing their homes because of it. An 85-year-old woman named Rebecca Finch might soon not have a place to live because of one of these loans.
Twenty years ago, her daughter Sabrina took out a student loan to complete her nursing degree. Now, Rebecca could lose her home and face a difficult situation at 85 years old. No one wants to be in that situation, especially at an older age.
Why might Rebecca Finch lose her home due to the student loan?
In 2004, Rebecca’s daughter began her nursing studies, but she soon found out that Sabrina was having money issues. The daughter had trouble paying for her studies, so they decided to apply for a student loan to help cover the costs.
The goal was to set aside all the unstable jobs and not worry about study expenses until she started working. However, that perfect situation ended up becoming the opposite years later. The $17,600 that Sabrina applied for as a student loan could lead to Rebecca losing her home today.
The main issue is that years later, when she is 53, Sabrina has mental health problems that make it hard for her to work and pay back her student loan. Navient, the loan provider, has canceled Sabrina’s debt due to her disability. However, Rebecca also signed the contract, so she still needs to pay the debt.
Rebecca, who is 85 years old, is having difficulty handling the situation. She currently receives a pension of about $1,650, but has daily living costs and a mortgage to pay. So, the $31,000 in student loan debt she has might make her lose her house.
The main issue here is that Rebecca signed the student loan agreement. If the main borrower can not pay the debt, the co-signer must cover it. If Rebecca does not pay, she could lose her home to cover the debt.
