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  1. #1
    Join Date
    Jul 2008
    New York

    Question Student Loan Default

    My question involves collection proceedings in the State of: Connecticut

    Hi everyone. I have a question or two about my student loan debts. Throughout the course of my undergrad studies I took out collectively 45000 in stafford loans. I also took out a Perkins Loan and Felp Loan. the felp loan has been paid off almost accidentally from my grandmother's estate when she died. But the Stafford and Perkins loans are still there. Since my graduation I have--well financially I have had some ups and downs--complete with job lay offs and escalating rents.
    Despite asking for and filing out the necessary forms----Sallie Mae and the Connecticut Student Loan foundation would not approve my requests for forbearance/deferment. And I did show them more than enough proof explaining financial hardships.
    Long story short CSLF has garnished my wages. In the meantime---i have been laid off twice from different jobs since the garnishment..
    And despite fantastic recommendations from former employers etc and the like I have not been able to secure full time employment since my most recent lay off.
    I have been in interviews where prospective employers have brought up the wage garnishment without my telling them about it. Then low and behold I do not get the job. of course this is 'never the reason'
    but deep down I am starting to believe it is.
    I do not have the money to pay these loans. and i may not have the money for quite some time.
    I am surviving on odd jobs such as dog walking and child care and a room i 'rent' in exchange for housekeeping. My life has been on hold because of these debts for years.
    I have had to put off getting married, having children etc.

    People have told me I can petition the court to request from a judge the loan debt be set aside. Bankruptcy would not be necessary and I could just do this. Is this true and if so--how so?

    Thanks for listening.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Student Loan

    People have probably also told you that if you cut your hair it will grow faster. (Unless it's so long that the weight has caused it to stop growing, that's just plain wrong.) The fact that people tell you something doesn't make it true.

    Consult a bankruptcy lawyer.

  3. #3
    Join Date
    Jul 2008

    Default Re: Student Loan Default

    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.
    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.

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