My question involves collection proceedings in the State of: Michigan
My daughter started college in 2003 and has since changed her major and is still a full time student. In the last week Sallie Mae has sent her notices that student loans taken out in 2005 and 2007 are now default and is requiring payment in full by the end of this month (14,000.00). The first notice was sent via email on Dec. 25th, 2009 and she did not read her email that week (big mistake!). We received the notices in the mail on Dec. 31st. Here is the situation.. these loans we believed we in deferrment until her graduation this year. These are private student loans and we have received no notices (not one until Dec. 25) that these were delinquent, much less nearing a default status (1 week) and now are in collections. According to Sallie Mae's own record of correspondence, there was only the 7th delinquency notice, never a mention beforehand that the payments were past due. We never received notice 1-6 and there is no record of them being sent. They are now demanding payment in full within this month or her wages will be garnished. The collection agency is willing to settle but we do not even have the settlement amount they are asking for (6,000.00) and are claiming that there is no deferrment for "private student loans". Even her credit report states that repayment is scheduled to begin in July 2010 and February 2011. We really received no notice that this was even happening! I co-signed one of the loans and my sister in law another, as well as her father. The collection agency is demaning 4700.00 (that we do not have) just to set up payment arrangements. Also, meanwhile, Sallie Mae has continued to give her new loans as well and now we are wondering about the status of those! I know the laws are different for student loans but we don't even know where to start! Can anybody help???????

