Legal Question in Credit and Debt Law in New York

Can they Legally Do this?

I have a student loan that went into default without me ever being notified that it was getting close to being in default. (I'm in still in school right now) Well this company called me up and told me that they had taken over the loan and we going to sue me as well as my cosigner if I didn't start paying on the loan. They told them I had to send them $5000 right away. And I did and since then I've been paying $1000 a month. Which isn't easy for me to do. Every month even before the payment is due they call and tell me I need to pay this month or they'll start proceddings to sue me. I tried to make a payment plan for a little bit less money. When I mentioned it they told me they would sue me instead and sue my co-signer. Can they do sue my co-signer? And is there anyway I can force them into making a different payment plan?


Asked on 7/29/08, 12:45 pm

2 Answers from Attorneys
Bunji Fromartz Fromartz Law Offices

Re: Can they Legally Do this?

I suggest you call the NY State HESC at 1888.215.0196 http://www.hesc.com/content.nsf/SFC/1/Questions_About_Loan_Repayment

That is the HESC's Loan Advocate Unit. They can tell you if the loan is proper and whether the payment demands and agreement were proper. If they were not you may be entitled to recover from the lender.

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Answered on 8/12/08, 1:28 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Can they Legally Do this?

If you're still in school, can't the loan be put in deferment status?

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Answered on 7/29/08, 5:24 pm


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