My question involves collection proceedings in the State of: Maryland
I have a private student loan through Key Bank. There are five separate loans that total now almost $100,000. I got out of college in 2007. I was able to defer the loan for a six month period, but was then told that with a private student loan I didnt have any options to defer it any longer. I had to start paying. I didnt have a full time job yet at the time when i started paying. I was paying $618 a month which I was supposed to be paying for like 20 years. I was making the payments, but living with my dad and didnt have much left over. I then made the mistake of signing with a debt settlement company. I was overwhelmed and bought into the whole thing. I was making payments into an account set up with the company and when I had a lump sum they would try to make a settlement. They told me this would take them five years to do. Sounded good to me right. Of course after a while the debt was sent to collections. The debt settlement company I signed with sent me an email with other peoples information in it so i didnt feel comfortable with them any longer. They of course still made off with thousands in fees.
NOW I find myself in a terrible situation. I have talked with the debt collector and at first they gave me the option to settle at half of the debt. So if I could come up with $50,000 to pay them, I would be done with it. However, I could not come up with this amount. Now they are telling me I have no other options. I called back letting them know I couldnt get the $50,000 thinking they would take other action against me such as wage garnisment or allowing me to pay monthly, but she told me that they are not going to waste their time with me when they know I have nothing. They are going to go to my cosigner. I am trying to prevent this in any way that I can. She said basically they do not even need to contact me or my cosigner except for one time to let me know I owe, they just contacted me a bunch of times out of couresy and to give me a chance to show I was willing to pay. I am willing to pay, but I just cant pay in the way they want me to which is the whole amount. I am not sure if this is right for them to do. Is there really no way I can fix this? If I tell them I am willing to pay a monthly payment, do they have to accept this before they go to my cosigner? shouldnt they have to attempt to garnish my wages before they go to my cosigner? She gave me a week to try to come up with the $50,000 and when I called back I told her I wasnt able to get it. She basically acted like "well I gave you an opportunity and you didnt do anything." She told me I should have gone to my cosigner and told him to help me out and since I didnt do that I didnt show I was willing to get this straight. I didnt do it cause I wanted to keep him out of it and I thought if I didnt get the $50,00 they would then act against me. What can i do? I know this whole thing happened out of my stupid decision to sign with the debt settlement company. Is there anything I can do to fix it without action against my cosigner?