Dear Mary: Our daughter graduated from college with more than $100,000 in student loans. Her first job did not pay enough for her to begin repaying the loans. The only loan that we co-signed is more than $600 a month. We did not know that it was in default until she was several thousand dollars behind. This came at us after a home remodel and a wedding. We are not prepared to pay this loan, and we would like to give her advice but are at a loss as to where to start. She just took a job in San Francisco with great benefits and a decent salary, and she has been out of school since December 2006. Can you give us any direction? I read your advice faithfully every day. You are my hero. — Ann S., California

Dear Ann: When you agreed to co-sign that loan, you took on a legal obligation to repay it. Ability to repay was not part of the deal, and that holds until it is paid in full. First thing: Call the lender and make sure you are receiving duplicate statements. Next, find out how much is required to bring this loan current. Then the three of you need to sit down for a serious talk. It was nearly painless for her to take on this humongous load of student debt, but as you all are learning, the pain was only delayed until payment was required.

This loan is not going away. In fact, if it is in default, it is in a state known as "negative amortization." That means the principal is growing every month because the unpaid interest is being converted to principal, which starts to accrue interest in the following month. I regret that no one explained all of this to you and your daughter on the day you agreed to co-sign.

Ignoring repayment is possibly the most deadly of all responses one can have with student loans. Unlike other kinds of debt, federally guaranteed student loans cannot even be discharged through bankruptcy. All three of you may be in danger of having your tax refunds intercepted, your property attached and even your Social Security checks garnisheed in retirement until payment is made in full. Ouch!

The U.S. Department of Education's debt-collection service publishes a guide called "Guide to Defaulted Student Loans." It includes information about repaying a defaulted student loan and includes other important information. For more information, call 1-800-4-FED-AID (1-800-433-3243) or 1-800-621-3115. Also, you might want to contact the Department of Education's ombudsman (www.ombudsman.ed.gov), an office that provides help to resolve disputes and solve other problems with student loans.

I wish I had better news, but when it comes to student debt, the only way out is through. At the risk of losing my status as your hero, my advice is that someone needs to get and keep another job that nets at least $600 a month for as long as it takes to repay that debt. Doubling up on payments will help to get it knocked out in a hurry so you can get on with your lives.

Do you have a question for Mary? E-mail her at [email protected], or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about