Legal Question in Civil Litigation in Tennessee

Student loan

I took out a student loan in 1993, signing a promissory note for x dollars. At the time I signed for the loan, the interest rate was 4%. Sometime between the time I took out the first loan and my final loan, my notes were ''purchased'' by another entity and my percentage rate rose to 9%!

What can I do about this? I did not give permission for this loan to be sold and now I feel like I am slave to the loan company, even after paying well over 3/4 of the loan off. I am now being harrassed to make payments. Do I have some kind of relief? I have my original documents.


Asked on 4/22/04, 4:32 pm

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: Student loan

You need to check your original loan papers. Do they provide for a fluctuating interest rate? If not, the purchasing company cannot raise your rates. Finance companies often "sell" loans to other companies. This is legal. It is not legal for the purchasing company to change the material terms of the loan. I would be happy to review your situation and see if we can help you. Please contact me at 1.800.403.7868 or at [email protected].

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Answered on 4/23/04, 2:57 pm


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