Student loan debt after reconsolidation twice
Date: Fri, 05/12/2006 - 06:45
Student loan debt after reconsolidation twice
I reconsolidated into here recently and regained another 5 years of forebearence time, however I am worried that when I ask for the income sensitive payment that I won't be able to afford it. I plan on taking 2500.00 of my income taxes and dividing it by 12 and paying 208.00 monthly to them. I have been told that sure it may default and ruin my credit even further, but I heard they won't try to garnish your wages if your making a faithful effort into sending in something monthly on a reg. basis.
Does anyone have any dealing experience with student loans? Is there a way to get out from under them? I have heard others say they will nail you to the way and garnish your income taxes even if your paying what you can a month. It is crazy.... Right now they are in forebearance until Spring of 2007.
Any advice will be appreciated.
student loans
all i have done with my student loan is used up my forebances. I was out of work for about 6 months but did make some payments. I have a job now but do not make much and I don't know if my job will keep me on for the winter. Is it to late to file for a deferment?
Have you read thru Sallie Maes website on deferments? All the i
Have you read thru Sallie Maes website on deferments? All the information is there. Call them NOW. You are more than likely eligible for a economic hardship deferement.
I had a private student loan through Citibank for 42K default. I
I had a private student loan through Citibank for 42K default. I have been making payments since April 2005 when it went to a collection agengy-LCS Financial. My father is the co-signer on this loan. At this point I have spoken to a representative from the CA and they say that the amount I have been paying is not acceptable. They have threatened to go after my father as well. Am I okay/safe from garnishment or having my father as co-signer affected as long as I make regular payments? I have agreed to at least $150 per month.
Quote:Originally Posted by AnonymousMy attorney told me that if
Quote:
Originally Posted by Anonymous My attorney told me that if ACS is asking for 380.00 and I am only sending them 300.00...he seriously doubts they will garnish my wages or take my refund check. This was my attorneys advice... |
Get a new attorney....your attorney is an idiot who doesnt know what he is talking about.
Tax offset is huge as is student loan garnishment. They dont need a court order so if you do not comply with your agreement, they can and will easily garnish your wages.
Quote:Originally Posted by AnonymousI had a private student loan
Quote:
Originally Posted by Anonymous I had a private student loan through Citibank for 42K default. I have been making payments since April 2005 when it went to a collection agengy-LCS Financial. My father is the co-signer on this loan. At this point I have spoken to a representative from the CA and they say that the amount I have been paying is not acceptable. They have threatened to go after my father as well. Am I okay/safe from garnishment or having my father as co-signer affected as long as I make regular payments? I have agreed to at least $150 per month. |
Nope...you are in default. When you default, your loan balance becomes due in full immediately. They can and will sue you even if you are making payments.
If your interest is 7%, you are looking at interest around $250 per month which means you are not even covering your interest charges....your balance would actually be increasing each month.
The balance has increased, I now owe more than what I originally
The balance has increased, I now owe more than what I originally had owed, even with over $2000 in payments. What would be the best way to proceed in this case then, as I do not want my father to be affected? Should I have negotiation with LCS now occur through an attorney? I am just curious because they haven't sent it into further actions, lawsuits, garnishments, etc., so it seems that maybe they are willing to work with me. They have requested at this point that I given them $1000 down and make payments of $200. I am, not really able to come up with the $1000, but did agree that I could make the $200 payments. Just looking for solutions, and I do not want my father to become liable. I originally defaulted because CitiBank did not inform me of any options such as deferment, economic hardship, loan forgiveness, etc., not because I just decided not to pay or to make my father responsible for paying (I am trying to avoid this AT ALL COSTS!!!)
Your father IS liable....and even making payments they will sue
Your father IS liable....and even making payments they will sue both of you!! And $200 doesnt sound like it would be making any headway either. If you dont make payments well in excess of the interest, you will never pay it off.
Private loans do not offer loan forgiveness, and have very limited forebearances and deferments. (6-12 months max) It is not their responsiblity to inform you of your options.