Legal Question in Credit and Debt Law in Nebraska

Student Loans in Collections/Need Help

I took out a private student loan, cosigned by my father. I took a few months off from school, and filled out forbearance papers from the loan company.

My big mistake was not requesting confirmation of the receipt of the forbearance. Three months later a collection agency is calling asking for 90 days past due fees and even more. I can't pay it...neither can my father. I've told them I will be returning to school, and I could maybe repay just the 90 days. But, they want over double the amount. I'm told if I pay what they want, then my account would be elegible for forbearance once more. The more time goes by with this unresolved, the more $ the collection company tacks on. What are my options? I really want to pay them back. But, I can't afford to until after school. They want all or nothing. I have a daughter and we are living paycheck to paycheck. I am hoping my degree will pay off. I don't know what to do.


Asked on 3/03/08, 11:34 am

1 Answer from Attorneys
Katherine Owen

Re: Student Loans in Collections/Need Help

You don't have a lot of options with student loans. I would contact the original lender and try to apply directly for another forbearance or deferment including the dates which are currently causing you problems. If the creditor refuses to deal with you directly and refers you to the collection agency, there's really not much you can do if they won't take partial payments and you can't make a full payment. If you get a tax refund or the economic stimulus payment in May this year, apply it to your student loan debt.

Read more
Answered on 3/03/08, 12:23 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Nebraska