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[Niamh]

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This situation sucks. I was a few months behind on my private student
loan last year, and rather than work something out, they defaulted me.
Nothing has happened for a year until last week when I get a call from
the collection agency. They want payment in full: $39,000. Obviously,
I can't afford that. They spend the weekend doing "litigation review"
(whatever that is). I call them today and they offer me what they
consider a payment plan:
$19,000 down plus $450 a month for 48 months.
Or $12,000 down plus $650 a month.
Or $7800 down plus $735 a month.

What!?!?! I had trouble making $350 payments, and they think I have
that kind of money to plunk down for a down payment?

They aren't willing to work anything out either. I ask about
rehabilitating the loan. No. (They claim the loan guarantor doesn't do
that.) I ask about refinancing. Nope. (Again, the guarantor "doesn't
do that.") Why won't they work with me, realistically??????

So, if I don't make payment arrangements with them, they say they will
consider suing me and the co-signer. That I will be served papers by
the Sheriff at my place of employment, and I will be responsible for
the collection agency's attorney's fees and court costs.

I have no assets. I have very little income. Private student loans are
a *nightmare*. My Federal loan lenders always work with me, no matter
what my financial situation.

I can't even file bankruptcy on this private student loan because
there's some caveat that, if part of your loan was financed by a
non-profit organization, then it is treated as a Federal loan and is
non-dischargeable.

The loan was for $27,000. So far, I've made $20,000 in payments. Only
$15 of that went to the principal.

Any advice? Are there any rights I should be aware of with regard to
defaulted *private* student loans? (Yes, please keep in mind this is a
private loan. I've gotten a lot of good advice in the past, yet it
only applied to federal student loans.)

TIA,
Niamh

P.S. Not sure if this is relevant or not; I doubt it is but...my
father was the one who had this grand idea to take out this loan and
ask a (former) family friend to co-sign. We believed him that there
would be no problem making the payments. And then he became mentally
ill...and was even committed. And the co-signer and I are left holding
the bag.