Legal Question in Credit and Debt Law in South Dakota

student loan default

i was told my student loan is in default. What is the allowed time period before they can do this. my loan is a private student loan.i was never contacted by the lender nor the collection agency until yesterday and now they want full payment in 7 days or the will go to litigation. is this allowed by law or are they wrong.


Asked on 1/08/99, 11:30 am

1 Answer from Attorneys
JAY Nixon nixon law offices

Re: student loan default

You must read over your loan documents and determine

how they define default. If you qualify, the bank can

sue you and pursue you for the rest of your life.

These loans are no longer dischargeable in bankruptcy,

thanks to recent congressional action last fall. As soon as

the impeachment is over, Congress will begin doing

additional damage to the bankruptcy code. The best we

hope for is a long, drawn out trial to keep them

occupied awhile longer.

Jay K. Nixon

Harvey,Nixon & Fisher

P.O.B. 1555, 333 Main St


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Answered on 1/26/99, 7:23 am


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