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Question

I am in default on my student loans. I've hit a rough spot financially due to medical expenses and a reduction of $800/month gross in my paycheck. I am a teacher, working my 10th year now. I've been turned over for collections. What should I expect? Is there any answer to help with this? I'm tapped out financially or would have gladly been paying. I'm out of forebearance/deferment time as well. I'm current, so far, on all my other debt obligations, including a home mortgage and car payment. I don't want to bankrupt on them so that I can pay student loans. What should I be expecting from the Dept. of Ed. and the student loan people? Thanks.

Submitted: 391 days and 8 hours ago.
Category: Legal
Value: $15
Status: CLOSED
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Optional Information

Gallipolis, Ohio

Already Tried:
I've used all deferment/forebearance time. I've made a payment when I could. I've kept in touch via email and letter. I refuse to speak over the phone. I want a clear paper trail of what has been talked about. I do not trust the loan companies. I have explained my situation to them numerous times. I lost an $800/month supplemental teaching job very unexpectedly. My insurance copays have increased. I was hospitalized twice last year, my daughter once this spring. We had a car accident in April, 2008. Still under medical care for injuries received then. Cost of medications have increased. Pay raise was below rate of inflation and has been for the last 3 years or so. Teacher at a public school in rural Ohio.

Posted by disabilityatty 391 days and 8 hours ago.

Info Request

Hello:

 

Have you asked them to consiolidate your loans if there is more than one type?

 

jogoesq

 

391 days and 8 hours ago.

Reply

I have already consolidated, around 2002 I think.

Accepted Answer

Hello:

 

You can expect them to eventually proceed with a lawsuit. In the meantime, you should put away as much money towards the debt as possible. Do not send it to them. When they sue you, you should have an attorney contact them to make up a payment plan. Unfortunately, you can frequently get better resolution during the pendency of a lawsuit than while the debt is in collection.

 

If you cannot afford an attorney, you can talk to their attirneys when the lawsuit is initiated. They will be more reasonable because they don't want the judgment, they want money. Whatever you do, do not ignore any summons and complaint. Also, do not pay them anything unless you get the agreement in writing before you pay them.

 

Hope this answers your question.

 

jogoesq

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Expert: disabilityatty
Pos. Feedback: 100.0 %
Accepts: 
Answered: 10/27/2008

attorney

I have over 17 years experience in representing Claimants for Social Security disability and SSI.

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