My question involves collection proceedings in the State of: MO
Hi, I'm wondering if someone could help clarify what I can do about Sallie Mea, what they can do to me, and how I can help both Sallie Mae and myself.
I have a total of 9 loans through Sallie Mae. 2 were federal and have since been consolidated with my Direct Student Loans. The other 6 are considered Private Student Loans.
I'm currently in an "Extended Interest-Rate Reduction" Program for 4 of the loans. They take 189.98 out every two weeks, directly from my checking account. 2 of the remaining 3 loans have now been charged off and sent to NES, a third-party collection agency. I just spoke with a Michael Anderson today who advised me of my options. I cannot pay anymore to Sallie Mae as of right now. They will not settle for anything less than an additional $600 a month (the last loan is about to be charged off as well and who knows what they will want for that.) Mr. Anderson offered to settle if I pay $26, 834.06 and he will recommend the other loan ($31, 820.97) to be forgiven. I explained to him I do not have $26, 834.06 laying around. He said I do and mentioned my line of credit I have available. One of the lines ($20,000) is a joint credit card the family (my mom, dad, brother, and I) use for emergencies (car problems, medical). This line is not an option and has since been cancelled. Unfortunately, my mom has decided my parents are no longer helping me and therefore cancelled the line today. They are trying to break any financial ties to me because they are afraid they will get brought down too. My parents are hurting BAD because of all the help they have given me. And now I've worn out my welcome. I explained this to Mr. Anderson and he said he's logging the call as refusal to pay. I asked him how it's refusal to pay when I'm willing to pay but am unable to give him the amount he wants at this time. He stated that even if the line of 20k is cancelled I still have an available 5k. This is because I recently and finally paid off VERY high interest credit cards. I explained to him I am not paying for my student loans on a credit card that has 27% interest. I also told him that he's advocating bankruptcy. That Private Student Loans are protected under the bankruptcy loan passed by the Bush Administration and if he convinces the customer to pay Sallie Mae by using a credit card, Sallie Mae gets paid but then the customer either has to deal with the credit card company (who has more options for collecting payment) and the customer can now claim bankruptcy. That is not fair to the customer nor to taxpayers who will now pay for the customer writing off their student loans indirectly through bankruptcy, but as long as Sallie Mae gets paid, they do not care. Needless to say, he did not like being called out on his own game and quickly ended the call.
I'm almost 30 years old, living with my parents (which is quickly ending since my parents are fed up and want me out), I make 40k a year and should have no problem making rent, starting my life or better yet begin a 401k. I have no intentions of ducking out on my responsibilities but Sallie Mae will not give me any straight answers. It's all open-ended threats.
So can Sallie Mae garnish my wages in attempts to collect PRIVATE STUDENT LOANS?
What, legally, can they do?
And what options do I have or what recourse could I take?
Thank you,
~B

