Private Student Loan In Default

[loan in default]

my private student loan defaulted in march of 2007. i was finishing my last semester of law school. i was sent to a collection agency and the agency says my only option is to pay my loan in full. they said i need to find a new lender to purchase the loan so they can recieve their payment. i am not going to find anyone to give me a loan because i have no collateral and am currently in default of a loan (my private student loan). do i have other options...like a payment plan with the collection agency or will my original guarantor take the loan back with strict payments. is there any form of default rehabilitation for me!!!

[Justmy2cents]

I am confused by your post. Generally all student loans including private ones include a grace period that includes the time you are in school plus at least 6 months to a year afterward. Who is the lender here? I would not work with any collection agency until they have at least provided validation of the debt. You must ask for that in writing. I would work with the original lender or guarantor instead. You can force them to do that by sending a cease and desist plus demand for proof letter to the collection agency. However, many unscrupulous lenders will just forward the loan to another CA. In that case, just keep sending the cease and demand letters.

[loan in default]

to be more specific. i had to leave law school to go back to work because of financial reasons. Therefore, my private loan became due with Access before i graduated. I recieved a forebearance while i was working because my income was minimal! then i went back to school January 2007-may 2007 when i finally graduated. with a private loan your payments come due once you use your 12 months of forebearance regardless if you are in school. I spoke with my original lender (Access) and they told me that private loans are not guaranteed therefore; it is out of their hands once they send it to collections. So, do you recommend i send the cease and desist letter to the collection agency. the collection agency is threatening to sue me if i don't pay the debt in full.

[Betty3]

You can send a cease & desist letter to the coll. agcy. for them to stop all contact with you except to let you know what further action they plan on taking to collect the debt. Normally, their next step is to sue you in court though.

[CJC188]

The last time I got a statement from them re: my student loan, the amount was less than 3,000.00. It is now well over 5,000.00. with whatever they have added to the amount.
The collection agency for Sallie Mae ( Pioneer Recovery ) offered to consolidate my loan at a relatively lower percentage than my interest that was accruing on the loan to date. I have 25 years to pay it back, apparently. I researched this a little before I signed the papers. It is the William D. Ford Foundation who offers this debt consolidation. I hope to God that I have not made a huge mistake by signing this.
The collection agency people always seem so shady while you are going through the process of dealing with them.... I am partially disabled from a car accident which is why I could not start paying the loan off.
The harassing phone calls were uncalled for too....they called my parents number at all hours and refused to stop calling.
I asked for an itemized statement and I got a rude supervisor that said " You're just stalling!! ( re: signing the papers which pays off the loan in full and enables you to get another loan for school if needed SUPPOSEDLY ) I told her that I thought that I was entitled to an itemized statement. She said, " Well, you're not getting one."
I told her I was a first year law student, and that I remember reading some place that anyone involved in a financial transaction is entitled to a itemized statement....she let up after that, but I still do not have a statement!!!!
I would not be surprised if they tack on extra and people pay it without even checking.
I called my school and got a balance and asked the collection agency for THEIR balance ( collection fees and interest accrued ) and added it all together. It was at least 450.00 OVER what I owed.
HOW THE HELL DO YOU CORRECT IT?
It seems as though not many people know about student loan procedures, and it seems that we are just expected to accept the loan amount without question. I do not think this is fair, and it should not be legal if it is.

[cyjeff]

The last time I got a statement from them re: my student loan, the amount was less than 3,000.00. It is now well over 5,000.00. with whatever they have added to the amount.
The collection agency for Sallie Mae ( Pioneer Recovery ) offered to consolidate my loan at a relatively lower percentage than my interest that was accruing on the loan to date. I have 25 years to pay it back, apparently. I researched this a little before I signed the papers. It is the William D. Ford Foundation who offers this debt consolidation. I hope to God that I have not made a huge mistake by signing this.
The collection agency people always seem so shady while you are going through the process of dealing with them.... I am partially disabled from a car accident which is why I could not start paying the loan off.
The harassing phone calls were uncalled for too....they called my parents number at all hours and refused to stop calling.
I asked for an itemized statement and I got a rude supervisor that said " You're just stalling!! ( re: signing the papers which pays off the loan in full and enables you to get another loan for school if needed SUPPOSEDLY ) I told her that I thought that I was entitled to an itemized statement. She said, " Well, you're not getting one."
I told her I was a first year law student, and that I remember reading some place that anyone involved in a financial transaction is entitled to a itemized statement....she let up after that, but I still do not have a statement!!!!
I would not be surprised if they tack on extra and people pay it without even checking.
I called my school and got a balance and asked the collection agency for THEIR balance ( collection fees and interest accrued ) and added it all together. It was at least 450.00 OVER what I owed.
HOW THE HELL DO YOU CORRECT IT?
It seems as though not many people know about student loan procedures, and it seems that we are just expected to accept the loan amount without question. I do not think this is fair, and it should not be legal if it is.

Please don't hijack every thread so that you can cut and paste your story.

If you want answers, start your own thread.

[mmmagique]

Actually, my fiancee was in his last year of medical school, (he's a dentist and a dental pathologist) when the loan people said he couldn't defer his loans any longer. Apparently (at least according to the person he spoke with), you can defer them up to five years, and then they insist on being paid something.

[CJC188]

"Please don't hijack every thread so that you can cut and paste your story.

If you want answers, start your own thread."

...My intention was not to " hijack " the thread. I accidently posted in the wrong thread and was not sure how to delete it, so I re-posted in ONE other thread. ( not all of them) I beg your pardon. I also thought that some of the other people in the OTHER thread might want to investigate the possibility of consolidating a loan. Who are you anyway, the " thread police?"

[CJC188]

Well, cyjeff, apparently you ARE the " thread police."
Apologies, I will use EDIT next time and delete the extra post.
CJC188

[Rosalynn200]

Hi young attoney,
May I ask what you have been doing for the past year since you graduated law school? Did you pass the bar? Are you working as an attorney? If you were sued and are working, would garnishment of your wages pose a problem for you? ie. does your state allow for 10%, 15% or 25% of gross? If you are not working, is there a specific reason for that? Could that be a "defense" for why you cannot pay your loan?
Also, is "Access" the lender, or is there a bank that loaned you the money? "Access" may be the secondary market or the middleman that issues auction rate securities to investors in exchange for money that goes to lenders that goes to you. Is there a guarantor like TERI or "The Education Resources Institute, Inc." that would be the "holder" of a defaulted loan? Who, specifically, does your collection agency represent? Who is your collection agency? Do you have a copy of your promissory note that specifies who your lender or "holder" is and what your obligations are? Maybe you should find out precisely who you owe and deal with them directly.