Private Student Loans in Collections

Tackleberry59 · #1 10-02-2007, 11:27 AM

I graduated four years ago from a private university in Ohio and the only way to continue my college education was by taking out private education loans. I am currently employed but have been in financial hardship since graduation. I recived a threatning phone call while at work stating that if I did not pay the sum which is 77k that they would garnish my wages. I have stated that I would like to repay these loans but I currently do not have any extra money to pay towards that debit. What is the SOL in Ohio? What rights do I have? Any suggestions? Currently another expense to my budget is going to threaten having a place to reside.

aaron · #2 10-02-2007, 01:37 PM

If these are federally guaranteed student loans, there is no limitations period on collection. Are they?

Tackleberry59 · #3 10-02-2007, 02:46 PM

I am not sure if they are federally guaranteed? I know that they are through Sallie Mae.

aaron · #4 10-02-2007, 03:25 PM

Sallie Mae loans are probably federally guaranteed.

Tackleberry59 · #5 10-03-2007, 02:17 PM

What are my rights? I am not sure waht to do. I don't make enough to make the pymts they want I make too much for economic hardship. I am in comission sales position where income fluctuates month to month.

aaron · #6 10-03-2007, 02:19 PM

If the loans are federally guaranteed and not subject to a statute of limitations, you can try to negotiate a reduced payoff and/or payment schedule, but the loans won't go away by themselves.

If they are not, and are subject to a statute of limitations, you can see if the lender lets the limitations period expire, or (as with guaranteed loans) try to negotiate a reduced payoff and/or payment schedule. (You should expect that entering such an agreement will reset the statute of limitations.)

Lenders do not have to agree to reduce the balance owed.