What are my options for a defaulted Student Loan?
I lost my job in May and have since defaulted on my student loans (after consolidating & deferring them). My loan origination amount (at the time of consolidation) was a little under $32,000, of which I have paid over $17,000 in payments. Since the default I NOW owe almost $50,000 and am being harassed & threatened by a collection agency with wage garnishment, license revocation (real estate) and property seizure. How can this be legal/possible?
I feel like I borrowed from a loan shark instead of the government. Any advice/help would be appreciated.
evilattorney: Our government & financial institutes are corrupt by doing this to young people trying to get ahead in life…btw, your title suits you.
You don’t have any options except to pay your student loans. And yep, the government is the ultimate loan shark. They will get this money.
You cannot discharge this debt in bankruptcy, but perhaps bankruptcy might allow you to discharge enough of your unsecured debt that you will be able to afford to make your student loan payments?
I’m sorry I don’t have more positive, helpful advice. But it sounds as though you’ve done everything (consolidation and deferment) that you could have reasonably been expected to do.
