I am in $205,000.00 in Debt due to Private Student Loans

I too almost fell into the pit of private student loans. Thankfully my father saved me, due to me not having sufficient credit to sign myself, he refused to sign, since I received all the funding I needed in the form of grants and scholarships to cover my costs, so long as I lived at home while I went to school.

I hope that you can get the message out there, as well as get your debt solved

Hey Joe,

I happened to visit your website.

It is nicely done up.

I was 45,000 in debt when I was 27 and had learned life the hard way.

I do hope your debts are cleared Bro..

P.S I would RSS feed it to by blog.

Thanks and Regards
David

dupe

Joe...I have read your website on several boards and I would like to comment.

I think you are taking your battle in the wrong direction. There is nothing preditory about Private loans. They serve a function....they bridge the gap between family contribution/financial aid/scholarships and the cost of attendance. How many other lenders would lend you funds with no or little credit or collateral and not allow you to pay them while you are in school??? You state that you were "directed" to private loans. Did you do a FAFSA application for federal aid?? Did you read about ways to finance your education on the web?? I looked up the schools website and on the financial aid page, the first thing it talks about is federal aid. I am sure that this would all have been on the web in 1999...if it was not on the website if would have been in your student handbook.

Did you ask questions?? Did your parents ask questions?? Did you do any research?? It has always been expensive to live in California...did you do a websearch to check out rents in advance?? Most schools will list in there their handbook or website what average living expenses are. The financial aid department is required to have this information so they can create a budget to calculate the cost of attendance.

Joe, it really sounds like you approached how you were going to pay for your education totally blind. You cannot place the blame on the lenders. Yes you went thru a series of unfortunate events with your health. However you signed on the bottom line for those loans...you have to live by those terms. Private loans are not much different than credit card debts or car loans....except normally their rates are higher. What would you have done if there were no private loans?? Would that have forced you save up to attend?? To look for alternative means??

You actually have very low rates on your loans, with most not being very much higher than federal loans. I do not understand how you can call these loans predatory with these rates. What it comes down to, is you didnt have the money to attend school and you borrowed. Nobody forced you to sign the prom notes.

This probably sounds harsh, but it is reality. Secondary education is not a right. You pick an expensive school, you have to pay for it or borrow to attend. Even graduating from a school does not guarantee a job or an income.

I am sorry to hear about your situation. However, your only choice is to pay off the loans.

There have been many laws passed to help the collection of student loans. For instance, you cannot declare bankruptcy and write off your student loans. Alos, most student loans use a Connecticut (I think) statute of limitations which is 20 years. You will likely be sued if you don't pay.

Quote:

A contract can specify any state law for interpretation and enforcement. It does not matter where the student lives.

On my private student loan, it specified Connecticut law (I think, I don't remember the exact state), where the statute of limitations was 20 years. I suspect they all do that.

Federally guaranteed student loans have no statute of limitations.