Vocaboly.com

[Isabella]

Hello,

So, I called Sallie Mae about my private loan delinquency. They told
me to phone T.E.R.I. I called T.E.R.I. Default Prevention Dept. They
told me to phone the debt collector. I phone the debt collector. My
options are:

A) Pay the past due amount in full ($3245)
B) Default

I found out from T.E.R.I. that I can't even apply for an extended
forbearance request because the default claim has been filed on my
loan.

This is hell.

I also have a co-borrower on this loan. I worry more about her credit,
income, and assets than I do about my own (mostly because I have
none).

So, I started reading an interesting article last night by Ray
Woodcock (www.geocities.com/CapitolHill/Senate/3215/article.htm). It's
from a while ago, but the following caught my interest:

"More precisely, subsection ((A) provides that such loans are
dischargeable [in bankruptcy] if their repayment has been actually due
for more than seven years, and subsection ((B) provides, in the
alternative, that they are dischargeable if nondischarge would impose
an undue hardship on the debtor and his/her dependents.6"

So, does this still hold true? If my private educational loan has been
in repayment for more than seven years, it will be discharged if I
file bankruptcy?

My last question is this: is there a movement to change the ease of
student loan default (by lenders, guarantors, and collection agencies
being more flexible and offering more options) and/or to have the law
restricting student loan discharge in bankruptcy repealed? If so, I'd
like to join. If not, I'd like to start one.

Btw, I've paid $20,000 already on this loan that is about to default.
That doesn't even work in my favor in trying to prevent the default.
Not only that, but only $710 of that $20,000 has gone to principal.

This whole situation makes me feel like life is not worth living.

Isabella

[Isabella]

white_isabella@yahoo.com (Isabella) wrote:

[Joe Chromy, Jr]

Hi Isabella - please see the rest of my comments in your post.

On 3 Feb 2004 17:00:04 -0800, white_isabella@yahoo.com (Isabella) wrote:

:|>white_isabella@yahoo.com (Isabella) wrote:
>> Hello,
>>
>> So, I called Sallie Mae about my private loan delinquency. They told
>> me to phone T.E.R.I. I called T.E.R.I. Default Prevention Dept. They
>> told me to phone the debt collector. I phone the debt collector. My
>> options are:
>>
>> A) Pay the past due amount in full ($3245)
>> B) Default
>[...]
>
>So, here's the update on this situation:
>I called the debt collector again, because I thought I would propose
>an arrangement where I make payments on the past due amount of $3245
>while resuming my monthly payments. This would take me about 7 to 8
>months to bring the loan current. The debt collector said, "You'd
>never be able to catch up." I pointed out that making double payments
>would bring my account current in 7 to 8 months. He said, "We don't
>have that time." Huh? This loan is in repayment for about 10-15 more
>years, but giving me 7 months to catch up is too much time? I replied,
>"Oh, so you'd rather be after me the rest of my life?" He started
>yelling at me for being 240 days delinquent (he didn't even give me a
>chance to explain *why*), so I said, "Thank you for your time.
>Good-bye," and hung up.

Call the default prevention department at TERI back again... tell them of your
plan and see what they can do... Also, if your loan is 240 days delinquent - you
need to bring the delinquency down... this may give your more time. There are
specific procedures they have to follow and the number of days delinquent is a
base criteria for defaulting the loan repayment plan. If you can make a one
time payment of 3 or more payments at one time - that way you can get at least
60 more days to negotiate - but I would make the payment right away - prior to
the default of your loan because once it goes into default - your payments will
be applied accordingly.... and you can no longer use "days delinquent" in your
favor.

How much do you owe on the debt??? I bet it is near $3245.

:|>The only other solution I could think of is to consolidate my federal
>loans and this private loan. It's not a common thing to do, but I did
>find one lender who will do it (I will post about this separately).
>However, the debt collector told me Sallie Mae won't let me
>consolidate their loan because it is 240 days past due.

CONGRATULATIONS! Why don't you share this lender with the rest of the
readers... I sure would like to know who it is... I can bring lots of business
to this person. Anyway, Sallie Mae will consolidate the loan but first buy
yourself some time... see my previous post... they will not refuse a payment in
full arrangement with you... let them know what you are trying to do and that
you need some time to get the loan approved.

<<snip>>

:|>Also, regarding my previous question about student loans being
>discharged in bankruptcy if they've been in repayment for 7 years: I
>think this all changed in 1998, and they are no longer dischargeable
>unless one can prove undue hardship.

The bankruptcy provision related to 7 years has been eliminated... Also, the
exclusion to bankruptcy truly related to federal loan programs... but some
private education loan lenders and guarantors (Like TERI) have tried to include
their private loans for education purposes in the bankruptcy exemption... I
believe that they have succeeded in some circuits around the country...

:|>I posted this at misc.legal:
>"I know that student loans are no longer discharged under bankruptcy,
>unless one can prove them to be an undue hardship. I have two student
>loans, one federal and one private. I am currently in an Economic
>Hardship Deferment with my federal loan. The monthly payments on these
>loans total $460. My monthly income is between $400 and $500. If I end
>up having to file bankruptcy (which I really don't want to do), what
>are my chances in having these loans discharged? I'm in West Virginia.
>The federal loan has been in repayment for six years; the private
>educational loan has been in repayment for nearly nine."
>
>Here's the one response I got, from a Brett Weiss:
<<snip>>
Brett gave you some very useful information - but you really have to understand
the individual case law and how it applies to you...

:|>
>If anyone here has anything to share regarding my undue hardship
>question, I would be grateful to hear it.

Your undue hardship is designed to give you a permanent break on your student
loan obligation... but your other debts listed in your bankruptcy can be
negatively impacted by filing an undue hardship - you need to find an attorney
if you are going to go down this road... And if your attorney messes up you can
sue him for malpractice.

:|>
>Isabella

Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[John Tolleson]

"Joe Chromy, Jr" <bravejoet1us@earthlink.com> wrote in message news:<r97e20dvmq3o2seng498700mj0thenut2j@4ax.com>...

[John Tolleson]

Hi Isabella,
I'm writing you because I just read your post on the financial aid
newsgroup. Its been over a month old so I wasn't sure if you were
still checking the posts so thats why I decided to e-mail you.
Anyway, I defaulted on my student loans and was able to consolidate
my loans through Direct Lending which is a US federal program. My
loans after default totalled nearly $100,000! I got on their Income
Contingent Repayment Plan and my payment is based on my income.
Without this program I would never have been able to get back on
track. There is a loophole where they have to except you if your
current lender does not have a similar program.
So... I have been through "hell" and back with loans and I want to
help other people do the same. Write me if you have a question.
John
link to direct loans
http://loanconsolidation.ed.gov/