dischargeable?

The funds are borrowed for educational purposes, whether that be tuition books or living expenses. They are all non dischargeable.

Thats mind boggling to me. So if I used my credit card or took out a personal loan to pay for school I could have that discharged but since I took a education loan out for it I can't? That is a flawed system!!! Doesn't make a bit of sense

You borrowed funds with the ability to defer it while you where in school? Would your credit card or any other loan have given you that option and waited? Would you even have qualified for a non student loan personal loan? Most people dont.

I've been contacted by a private student loan company (at least, I think I have - more on that in a mo) with whom I have been trying to arrange an income sensitive payment plan, and in this latest conversation they have told me I have to pay a minimum amount by a certain date to avoid a charge-off decision. I was expecting to be threatened with default, so the charge-off decision comes as a complete surprise. I thought student loan companies, even private ones, never did charge-offs because they have other legal options available to them? Then I rechecked the contact information, and while it looks legit at first glance, and I can't find anything about it that seems blatantly phishy, the toll free number is different from the number I had been calling up til now, and does not appear to have belonged to this bank until very recently (if it belongs to the bank, I'm starting to have my doubts). Is it possible for private student loans through a bank to be charged off? Or is there a chance I was not really talking to the bank just now? Any help appreciated.

Soap, i actually did qualify for a regular personal loan through my credit union but I consolidated it into one with other educational loan. Do i have a case there?

Banks often originate loans and then sell them to servicers like Sallie Mae, AES and Nelnet. And yes they charge them off all the time which then transfers you to the collection division.

SamCS, private loans don't have income sensitive payments. If you can't afford the monthly payment you need to find a way to come up with the money as private loans are a nightmare once they default

Thanks, Soap Lady and Dr Jonah. They have told me I qualify for a short deferment if I meet the minimum payment they asked for, so I think I'm going to go for that and hope I have the money when the deferment is over.

My private loans have two deferment options.

1)Up to 12 months deferment for various reasons for the lifetime of the loan (once you've used all 12 months of deferment, you can't ask for any more)

2)2 year partial payment deferment, first year is 50% principle and 50% interest. Second year is interest only payments. Then back to regular monthly payments which will likely be higher because of outstanding interest that will be capatalized.

SamCS, if you get that short deferment, use that time to come up with some more money. Or check your loan website to see all your options.

That's great information about deferment options, I'm going to check with the bank. What they're offering me right now is a six month option, which they said would be my first of multiple possible deferments. But they didn't give me details on what subsequent deferments would entail.

Is it ever a good idea to send payments Western Union? They asked me to provide my checking account over the phone and I was leery of that, so I offered to overnight a certified check and they came back with a request for me to Western Union the payment. I'm concerned because they are not calling from the number I have on file for the bank, and it seems a little odd to me that they'd rather have a Western Union transfer than a certified check. I thought that my loan had just been transferred to a different department, because the people I've most recently spoken to have all the information relevant to my account, but today I got payment coupon in the mail from the bank department I'd been dealing with before, and it has a readjusted payment due amount. I'm going to call the number I'd been calling before just to double check on everything, but I'm curious if anyone has ever sent student loan payments by Western Union before, if it is safe.

It probably a western union quick collect ....we used to do them all the time. They cost about $12.

Autodrafts are pretty well the norm in the student loan industry.

Thanks for the information. Quick Collect sounds like the way to go.