Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Defaulted private student loan... do I need an attorney?

My private student loan defaulted and we were suppose to go to to court. I called the lender and thier attorney and worked out a plan. The attorney wanted to help but the supervisor at the lender did not. She told me I would need to hurry up and make payment to be current. She told me I need to make a downpayment of 1500 and pay 500 a month and that will clear my balance in 72months. I told her I can not do the down payment and the most I can do is $300. I said I am already forfietiing my dds preschool while I work paying this and if I pay more it will hurt me and I wont be able to pay rent. Well everytime I proposed somethign she threatened to take me to court. After pleading she said the best she an do is 300 a month and that paying $300 a month will make me never current. I asked her how long it will take to pay off she said 48 months. This didnt make sense to me at all. Well I agreed and askd her to send me a payment schedule or something outlining how long it will take to pay off and she said to figure it out my self. She says im paying towards the balance of 8,000 but that every month I have a pmt due that accures interest on top. With this in the lawyers hand I still have montly payments generated on top of the balance which makes no sense. I am thinking of consultting with an attorney.. Shouldnt I have a payment plan outlined stipulating how long its going to take. and if I am paying towards the balance plus interest why do I still have regular payment cycles that adds to the balance and I have no way of knowing when it will be paid off and what I am actiually paying.

Answer Question

Asked by Anonymous at 7:13 PM on Jul. 8, 2011 in Money & Work

Answers (5)
  • I was in default. You need to try calling or contacting direct loans. Its run by the Govt. They pay your balance from the banks trying to sue, and they have income contingent etc. They will help you. Google direct loans and call or start an application with them. Mine were messed up because of the people at the bank as well, you dont have to deal with them. Consoladate with them.

    Answer by gemgem at 7:15 PM on Jul. 8, 2011

  • Is this something you can transfer or consolidate to Sallie Mae or Direct Loan? Those companies have many different options for payment plans, including Income based and income contingent. They are safer to work with. try calling Direct Loan and see if that might be an option.

    Answer by ImaginationMama at 7:17 PM on Jul. 8, 2011

  • I highly recommend direct loans!

    Answer by tspillane at 7:28 PM on Jul. 8, 2011

  • just call and work out payments, my mom defaulted and she was able to talk them into garnishing her pay check verses gettin sued.

    im working on mine to be deferred since i been out of school 6 months and cant find a job

    Answer by Anonymous at 7:48 PM on Jul. 8, 2011

  • get an attorney, i had been told when bill collectors wont except a payment of what you can afford then the debt should be cleared. not sure if it works for student loans, but it worked with a hospital bill.

    Answer by Anonymous at 7:51 PM on Jul. 8, 2011

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.