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Advice About a Student Loan in Default

December 17, 2009

A man holding a sign that says need money now.I am a single mother who was out of work for a while and the cosigners to my student loan paid about $2,000 during that time. I am now working and sent out a payment to them, but they wanted me to sign a confession of judgment.

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I refused to and now they have been calling and threatening to take me to court to sue me and even went as far as saying they are going to take my tax refunds. The loan is not fully paid off yet, so I didn't think that could sue me for the full amount, just for the amount they have paid, is this true?

Also, I haven't returned their phone calls, because in the past they have left me messages and one was threatening to come and beat me up with a baseball bat if I didn't pay them the money. What if anything can I do about this. I intend to make sure I pay them the amount for the loan each month now that I am working again.

By Stacy

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Bronze Feedback Medal for All Time! 147 Feedbacks
December 17, 20090 found this helpful
Best Answer

Save all the calls they made to you. Call a lawyer to see what they say about it, good luck.

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Bronze Post Medal for All Time! 213 Posts
December 17, 20090 found this helpful
Best Answer

I have a very close friend who has gone to heck & back with a student loan. My girlfriend is also disabled & she was totally surprised that they could garnish her social security disability check which she lives on (she receives only $800 per month to pay bills & buy food & gas) The only advise I can give you is to work out some kind of agreement with these guys because if you ignore them or the longer you wait to deal with them the more fines & interest they charge.

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My friend was loaned $10,000 when going to school & now, no matter how hard she tries, she will never in her life be able to repay this loan (because it has snowballed). & because the loan is guaranteed by the government, they can garnish your disability or paycheck & take up to 1/3 of it. Her loan has been sold to at least 5 (or more) different loan agencies since she borrowed the money & each of them has added more fees & of course the interest has increased quite substantially.

---> Call legal Aid or pay $50 or $100 to go in one time to talk to a lawyer about your problem. This will be well worth the money it costs! If you can't afford a lawyer, then call one of those free credit counselors or e-mail them with your question. Get good legal advise! Even if you have to pay $50 or $100 to see a lawyer. You need someone who is working for YOU, who will answer your questions. Before you go in to the appointment with a lawyer, look in your local phone book & call around to different Lawyers in your area asking them if they have dealt with student loan problems before & ask what they'd charge to meet with you one time to answer your questions... Many times the first meeting with a lawyer is free. If the lawyer or legal secretary you talk to does not handle this type of work, ask them to please refer you to someone who does!

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* Also, if someone is hassling you & they (think or) know you have a lawyer working for you, they will stop hassling you & you will receive immediate respect. Or you can just say "Contact my lawyer".

Do not wait! Take care of this today Call around to lawyers in your area.

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December 17, 2009

I recently purchased a business (last August 06) and had emergency surgery in November. In April, I was contacted by a collection agency regarding a defaulted student loan that I took out in 1980s.

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