Legal Question in Credit and Debt Law in Michigan

Student Loan Settlement

I have a long-standing outstanding student loan that became two loans at some point in the past. NelNet will not explain that.

I have severe health issues that prevent me from working a lot of the time. I have no health care insurance, so I have no record of my illness & the resulting debility.

I would like to view the federal laws on student loan repayment & have an accurate interpretation at hand, so that I can have a personal representative resolve this intelligently & legally with Michigan Guarantee Agency, the collection company that now holds my loans.

I had to pay MGA before, & their idea of a ''reasonable'' monthly payment for me, when I wasn't working was $140.00/month!

I paid it, but I ate less than 400 calories a day for a year to do that. This made me sicker.

How do I have a personal representative talk to the collection group holding my loan so that I can pay a deeply reduced settlement amount on these two loans & be done with the whole mess?


Asked on 12/17/07, 4:43 pm

1 Answer from Attorneys
Rebekah Tiefenbach Rebekah L. Tiefenbach Esq.

Re: Student Loan Settlement

Unfortunately without records establishing your disability, you cannot claim you are disabled. Student loans are unlike other unsecured debts in that they cannot be discharged through bankruptcy, therefore, there is little incentive for lenders to accept any kind of settlement to discharge the loan.

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Answered on 12/18/07, 10:51 am


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