I took out a PNC (Private National Collegiate loan) back in 1996. I found out only later that this was actually a Sallie Mae private loan. I am currently in default on this loan and OSI (collection agency) is hounding me. I contacted Sallie Mae and they told me, and sent me a letter, stating that they no longer hold my loan and my balance with them is zero, and that the loan has been transferred to the agency that guarantees them, which is SLFR, a Sallie Mae company. Very confusing.
My question: Is this loan government backed or insured? OSI won't tell me. I want to pay it back but OSI's payment terms are totally unrealistic given my low paying job. I have been told by a lawyer that private student loans can be expunged through certain legal actions. Is this true? Before I retain a lawyer I would like to know if this loan is really beatable in court.
Your help is appreciated. Thanks in advance.