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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Received letter from law firm regarding my student loan that

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Received letter from law firm regarding my student loan that I've not been able to pay. There is no way I can come up with $54,000+. What do I do?

Zachary D. Norris :


Zachary D. Norris :

sorry. Hi

Zachary D. Norris :

Is your student loan a private loan or a federal loan?

Customer: replied 5 years ago.
I'm going to guess it's Federal, via National collegiate student loan trust
The best thing for you to do at this point is to contact the law firm and ask them if there is a payment plan you can work out with them. If not, then they will likely sue you for a judgment on the debt. This will expose your personal property which is worth over $1,000.00, your real property (except for your personal home), your vehicles that are worth over $1,000.00 and possibly your bank accounts and your paycheck to seizure by the court to pay for any judgment. You want to avoid that by attempting to work out a payment plan...and start paying it off, even if it is little by little.

Please let me know if this answered your question.

Best Regards,
Zachary D. Norris
Customer: replied 5 years ago.
With the size of this debt, if it were to go to garnishment or taking bank accounts, etc, do firms such as this accept 'small' payments - as in I can barely make ends meet now, but garnishing my wages is out of the question. I was told when I tried to work with the loan company that I do not make enough money to pay them back. Do I suggest an amount? What happens if I can't pay enough to satisfy them?
Unfortunately, you are in danger of having your wages garnished. However, they can only garnish what is over $500.00 per week.

You should figure out what you can pay and offer it to them. If they say no, the only thing left for you to do is try to declare bankruptcy (but of course...that costs money to). The bankruptcy court would be able to work out a fair repayment schedule that you could afford. You should contact the Florida Legal Aid office nearest you and see if they would represent you in bankruptcy court (if the law firm won't accept your repayment offer).

If you have any assets, you could try selling those to start repaying the debt as well.

In this economy, its hard to make ends meet. I hope this information helps you. Please let me know if you have further questions.

Best Regards,
Zachary D. Norris
Customer: replied 5 years ago.
One last thing - is there a statute of limitations on the debt?
Section 484A(a) of the Higher Education Action provides that no statute of limitations bars enforcement action to collect Federal student loans, including collection by offset, lawsuit, or enforcement on student loan judgments. 20 U.S.C. § 1091a(a). State law that would otherwise limit these actions is superseded by Federal law and cannot bar collection action.
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