# Defaulting on student loans



## aasta (Aug 14, 2012)

Hello!
moved to Portugal two years ago as a retiree and my husband and iIrun a small country guesthouse.

A few years ago I thought that I co-signed a student loan for my daughter who was in law school. Have now been contacted by said student loan company saying that the payments are due and that I am responsible for this loan. It seems it is only in my name. My daughter is an unemployed lawyer and dealing with her other student loans.
Question: does a US student loan company have any jurisdiction towards me here in Portugal?
Thanks


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## -mia- (Dec 23, 2009)

No. But if you are receiving any money from the US like a pension or social security they can take the money from those payments and they can seize tax refunds you may be owed.


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## canoeman (Mar 3, 2011)

Wouldn't it depend on the terms and conditions of the loan agreement you've signed, surely they would protect themselves from someone leaving country?


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## siobhanwf (Mar 20, 2009)

aasta said:


> Hello!
> moved to Portugal two years ago as a retiree and my husband and iIrun a small country guesthouse.
> 
> A few years ago I thought that I co-signed a student loan for my daughter who was in law school. Have now been contacted by said student loan company saying that the payments are due and that I am responsible for this loan. It seems it is only in my name. My daughter is an unemployed lawyer and dealing with her other student loans.
> ...



Hi there and a very warm :welcome: to the Portuguese section of the forum.

I have sent you a PM private message


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## Bevdeforges (Nov 16, 2007)

In order to pursue you for the student loan guarantee, the loan company (or the collection agency they ultimately turn it over to) would have to file something against you in the courts in Portugal, I believe. This is normally a long, expensive process that most collection agencies won't want to deal with. But mia also has a point - you may be vulnerable in terms of any funds you have in or coming from the US.

I've never been involved in student loans, but as I understand it there are the "private" kinds (i.e. through a bank or other financing company) and there are the "public" ones, those that are through the government (though I'm not at all sure how those work). I suspect the government backed loans are the ones where they could (theoretically) attach a US based bank account or benefits (i.e. social security). 
Cheers,
Bev


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## anapedrosa (Mar 21, 2011)

As an alternative, you might try contacting them to negotiate a repayment schedule that would work for your daughter. Faced with the option of not collecting at all, I would think that it would be to their advantage to work something out. As your daughter is an lawyer, I imagine that she would have decent negotiating skills.


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