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.
1 Answer from Attorneys
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