Private Student Loan(s) through Keybank in collections
Date: Mon, 09/28/2009 - 19:47
Private Student Loan(s) through Keybank in collections
I did not finish college and currently net about $27k per year. My father cosigned these loans and nets roughly the same amount per year.
I have other smaller debts, but no assets. My father has some equity in his house (albeit very little - probably about $20,000) and no other assets.
The collection agency is saying they have imposed a deadline of October 1 for payment in full or they will seek a judgment against us.
I don't doubt that they will at some point - but how far are we realistically from that point?
What should our next steps be? We may be able to get an equity loan, but certainly not for $55,421.77 and I doubt we could even borrow 70% ($38,795.24)
I have screwed up royally and I want to start making it right. I feel like I'd be making the wrong decision putting 10% or 20% down and making payments on the $55k given that it includes $10-$12k of late fees and interest already.
Should we continue to look into the settlement angle? How much time do we have? What would you recommend?
Private loans do settle...however not as much as you might like.
Private loans do settle...however not as much as you might like. At best they may settle for around $40k and even then that is low....$45k is more like it and you will be 1099'd on anything settled off.
You have only been in default one month? More than likely they are seeing the equity in your fathers home and could end up suing quickly because of it. Suing is commonplace for private loans...when is really up to how much is being collected and the assets they are going after.
It has been with the collection agency only 1 month. I went back
It has been with the collection agency only 1 month. I went back and forth with Keybank for probably 16-20 months making 2 or 3 payments in a row and then missing 2 or 3 payments in a row so the situation has been building for much longer, but they only contracted off to a collection agency recently.
Is it the collection agency that initiates the suit or Keybank?
What are they likely to accomplish through the suit?
Keybank will hire an attorney to file suit since a collection ag
Keybank will hire an attorney to file suit since a collection agency cannot.
A suit will ensure that the debt gets paid. Your father will not be able to refi or sell this home without paying this. Your will be unable to purchase a home with this on your credit. Plus they could end up garnishing both of you and seizing bank accounts.