Need Help… Defaulted Private Student Loan!!!?
I have two defaulted students loans (by two different lenders) for around 6,000 dollars each. One of which, I am paying 100 dollars a month. I am trying to come up with a payment agreement for the other but the collection agency(in which is very rude) either wants me to pay 455 dollars a month or the outstanding balance. I tried to talk to them about lowering the monthly payment to at least half but they are not going for it. Is there anyway of me getting around this? I am sincerely trying to pay off my debt and come to some type of agreement.
First, their is no statue of limitations on defaulted student loans. You can be old, gray, and retired and the lender still has the right and the authority to garnish your Wal-Mart greeter wages…. 30 years later.
The longer you wait on making payments on it the greater the amount you owe gets. Once student loans get into default, the lender has the right to add all kind of “penalties” and fees and hike your interest rates to unheard of levels. The one lender is probably letting it all hang out for you, while the other lender (the 100 a month one) is letting you blissfully pay 100 dollars a month not realizing the amount you owe is still growing every month because 100 isn’t even covering your interest.
A defaulted student loan or two of a mere 6,000 could very easily become a debt of 15,000 depending on how long you let it go. Double that times two loans and well… its a lot.
My point?
Don’t fall into the “If you don’t pay us 455 a month then don’t bother sending us anything at all” crap from the lender. Remember, you don’t need an “Agreement” to make a payment. LOL
You just need an account number and an address…. get that first… THEN try to negotiate with them regarding the amounts. They ARENT going to send your money back to you, I promise. LOL
Pay them, every month… something, SOMETHING is better than nothing, even if it’s only 100 dollars a month it will lessen the total amount you end up paying to get rid of those darn loans!