Legal Question in Credit and Debt Law in California
Government Loans
My mom took out a student loan for me when I was 16 years of age for the amount of $2000. She did not pay it back. They now are after me for the amount of $5000 due to interest,etc. I want to pay it back since the loan was for me but I dont want to pay $5000. They will not compromise. Is there any defense I can use for this type of problem. They say infancy is not a defense. In all fairness I do want to pay back the original amount of the loan.
2 Answers from Attorneys
Re: Government Loans
True, infancy is no longer a defense. The defense of infancy is an argument that the signing of a contract by a minor would not create a binding obligation. The defense of infancy is no longer a valid defense against collection of a student loan by virtue of Section 484A(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091a(b)(2)).
Your options? (1) Negotiate, negotiate, negotiate; or (2) Chapter 13 bankruptcy (which will allow you to pay off a portion of the debt over time, and also challenge the amount owed).
Best of luck, and please call if you have any questions.
Re: Government Loans
When was the loan taken out? What were the original terms? Do you have a copy of the paperwork? You must remember that the government is not the most efficiently run organization, and they make mistakes, too.
If you have a copy of the original paperwork, fax it to me at 925-397-3044. If you do not have it, tell the people trying to collect it that you want to see a copy. You are entitled.
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