My question involves collection proceedings in the State of: Minnesota
Back in 2005 I co-signed for a private student loan for my son. At that time he was 24 years old. The loan amount was originally $14,000. I soon found I had made a mistake because he dropped out of school not long after that and he still had to pay the loan back. Since then he has been in and out of jobs and is currently unemployed. I donít see him getting a job anytime soon. I had filed for bankruptcy with my spouse that same year after that but my attorney told me I could not discharge this loan, so we did not.
After deferments in hopes he would get a job, we can no longer defer. The loan has now escalated to $24,000. After many many phone calls and letters, and me being in contact with AES and then the collection agency, I borrowed the maximum I could on my pension. This only equaled to less than $4,600. It brought down the loan some but not enough. I cannot borrow against my home since our market value has gone down so much, $20,000 down. I can only make $100 a month payments until it is paid off which only pays about $20 a month on the principal. I am going to be 50 this year and I am afraid that I will never get this loan paid off at this rate (I may not live long enough). My credit will always be poor because of it. I have already felt the brunt of this when applying for a car loan.
The collection agency is not willing to go down unless I can make a settlement payment of $18,000 which I do not have. We live in the poorest county in the state of Minnesota so it is hard just to make ends meet paycheck to paycheck.
What can I do?