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dkennedy, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 6009
Experience:  Over 15 years experience
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I have five private student loans I took out for grad school

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I have five private student loans I took out for grad school that are in now in default...a total of $82k...when loans were taken out and approved (robo-approval process), I planned on being able to pay them back through my salary in good faith. i graduated in 2007 but never made enough money to ever be able to afford the payments...i used up all deferment and forbearnce alllowed...explained our financial situation time and again but no one ever would work something out. so i gave up trying to work it out w/them. now i have been served w/a summons to answer the loan company's complaint.
Hello. My name is XXXXX XXXXX I will be happy to answer your question.

I am sorry to hear about this unfortunate situation.

What is your specific legal question for me?
Customer: replied 4 years ago.

I don't know how to proceed. I don't even know what it means to "answer" the summons. I don't have any money to pay the loans either.

Dear XXXXXifer,

Unfortunately, we cannot tell customer as to how they should proceed with their specific case, since such legal advice can only be given by your local attorney, upon the full review of your case and all related documents.

However, I can provide you with a general answer to your specific legal question, if you can clearly state one to me?

If you are not looking for general answer, but for legal representation or legal advice, please let me know and I will promptly opt out of your question at no charge and will open your question up to other legal professionals.

Customer: replied 4 years ago.

Please opt out as I am looking for advice. Thank you!



In order to "Answer" the summons you have to file a legal paper. They would have put the name of the parties and case number XXXXX the paper they served to you, so you use the same parties, court name, and case number. Then you deny everything and answer each of their allegations by denying. it only means that you are contesting the lawsuit against you. If you do not file this right away, they will get an automatic judgment against you.

Customer: replied 4 years ago.

Do you know if it's possible/realistic to think that I could work something out with the plaintiff for a considerably lower amount? Or do these collection agencies for private student loans look to collect the full amount?

Most of them will take what they can get and it never ends. Try to fight it as long as you can. No matter what you pay they will keep adding interest. If you have no money they will soon move on to someone else. It's a sad situation that someone ought to do something about. Try to explain that to the court that you cannot pay.
Customer: replied 4 years ago.

I sincerely XXXXX XXXXX help. By "most of them will take what they can get and it never ends", does that mean if we offer to settle w/them for maybe $20000 rather than the $80k owed, will they keep seeking the remaining 60k? and if they do settle, can we request the loans be considered paid in full for credit reporting purposes?

What happens, if it is one of the underhanded collection agencies is--they will settle for the 20,000 in payments, but no matter how much you pay, the interest will keep adding on and on. As I said, it's said but true.


Customer: replied 4 years ago.

So I just want to make sure I understand what you mean: they can go thru this same process again in the future? Even if we agree to a settled amount, the agency can seek the remaining balance in the future?

No, but interest on 20,000 will add up and they will keep adding interest just like a credit card. They can only get a judgment against you once for the same amount. But, they are allowed to charge interest every month. That's what I meant.
dkennedy, Lawyer
Satisfied Customers: 6009
Experience: Over 15 years experience
dkennedy and 4 other Consumer Protection Law Specialists are ready to help you
I'm going offline for a while, but will check back early in the morning for any follow up questions.