Legal Question in Credit and Debt Law in New York
Hesc student loan default
30 years ago i toook out a student loan it was 1000$ we paid up 400 my husband at time filed chapter 13? i think consolitdation of bills it was included 1year later we divorced. i was not notified for 5 years about this and then bill up to 1500 now im remarried and the loan is in collections and they say they can charge me 9 % compounded daily on this is this correct balance has been $2500. for 15 years no matter what is paid on it isnt this loan sharking. money from my tax returns have been taken over 1000$ but balance never goes down is this legal it is in hands of collections agency
2 Answers from Attorneys
Re: Hesc student loan default
If this is a government student loan, you will have to pay it all back with interest. If you cannot prove payment either by check, cash or tax returns that were seized, you will have to pay again. If this is not a government loan, you may have rights under the law that protect you from paying (if too much time elapsed since you were contacted for payment for instance). Your explanation does not provide sufficient information to allow me to make an informed response...but you should IN WRITING BY CERTIFIED LETTER RETURN RECEIPT REQUESTED advise the collection agency to provide documentary proof you owe the money. Do NOT explain the history of the matter (partial payment, etc.) as anything you say can be used to prove you owe the balance...JUST DEMAND PROOF. If they don't have it they may not pursue you further. Collection agencies can ony threaten you AND DEMAND THEY STOP communicating with you - also in writing...There are a number of statutes GOOGLE "CONSUMER CREDIT LAWS" that are there to assist you. Good luck.
Re: Hesc student loan default
Federally guaranteed student loans are not dischargeable in bankruptcy. Ask the collection agency for the breakdown in Principal, Interest, and Penalties/Fees. Garnished tax refunds may only be applied to the principal. If you offer to pay the remaining principal plus one-half the interest, they might accept. Good luck!
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