01-20-2013 05:11 PM - edited 01-20-2013 05:12 PM
No, the only individuals who are act risk of being sued are the names and socials on the contract. If you have a co-signer on the loan that is in default, this is more reason to settle. As they will likely suffer the brunt of the damage. Since co-signers often have better credit, and are further along in life and have more assests to go after.
01-21-2013 01:27 PM
thanks. now i will need to check what i need to do. since i have 12 loans for sallie me. 11 of them were cosigned by the same person & one was cosigned by a different person & now sallie mae has both cosignes forl all 12 loans. which one of them is defaulted.
05-19-2013 08:03 AM
Hi. I just read your post, and I hope you can help me with the situation I am having with SallieMae and NES. I made the unfortunate choice of co- signing my son's student loans from 2005-2007 for about $35,000. All loans went into forbearance, then he defaulted on all of them ( about 6 different loans) So, I started making payments in 2010 to save my credit, however, in Jan 2011 I was contacted by NES that all defautled loans had to go thru them. They offered me a settlement of $3000 down ( which was very hard for me to do and caused my other loan payments to be late) and they would also take out $150 a month from my account. They said they would reduce the total owed from $35000 to $17500. I agreed and they withdrew the $3000 and the monthly payment on time for 6 months. Then in June, 2011 I was again contacted by NES that the person I made the settlement with was not authorized to do this, and they needed another $3000 down immediately. They started calling and threatening me at work. When i looked up my statements from SallieMae, it showed that my initial payment of $3000 went towards "other fees" and was told that this was commission for NES, and the balance was now over $40,000. I was forced to declare Chapter 13 bankruptcy in Nov 2011 just to get NES off of my back and to save my home.
My son has finally matured and is taking responsibility for these loans. He has started making payments over the past year, but he is having the same issue I did with NES. They pressure him to make a settlement with NOTHING in writing, and no one knows where all his payments are that he has been making. It seems to me that once these loans are defaulted on, it is really next to impossible to catch up and pay these back. Why is this the case, and how can this be legal? Everytime my son calls NES, he is given a different account number, and his payments can't be traced at all, and the few that can all went towards "commission" with nothing at all applied to the loans. His balances are now up near $50,000, with no end in sight.
I have another 30 months until my bankruptcy is discharged, and I am already getting concerned about dealing with SallieMae and NES all over again. My son and I would be more than happy to pay what we owe to get rid of these, and I would even take a 401K loan to pay off some of these loans. I only started my 401K last year but I should have enough to borrow in 3 years to pay off some of the smaller loans. My question is, how do I know that the settlements I agree to with NES are legit? Where has all this money that we have sent them over the last couple of years been going?
I would really appreciate any advise you can give me and my son, as we are trying to do the right thing. I know I made a BIG mistake co-signing loans for him, and never would have believed this would happen. Is there anything my son can do to get these loans back on track, and anything I can do on my end before my bankruptcy is discharged ? Thank you so much for your advise!
05-19-2013 10:44 AM
I'm under the assumption that private student loans are not government debt since they are not federally secured.
So you would have to be sued and get a judgement against you for garnishment to happen since it's a private SL. No?
05-19-2013 06:43 PM
Private student loans are an entirely different thing than federal student loans and don't have the type of relief programs that the federal loans do.
Because the levels of default are reaching historic highs, some private student loan lenders are now offering workout solutions. While you pretty much cannot discharge private student loan debt in bankruptcy they do follow the statute of limitations laws as well as the 7.5 year credit reporting time period. Pretty much their only recourse is to take you to court if you are within the SOL. If they do take you to court they can possibly win a judgment which could lead to garnishing your wages.
Here's a good resource website: http://www.studentloanborrowerassistance.org/colle
05-19-2013 09:11 PM
NES are unreasonable and it doesn’t matter what you say to them they won’t make any effort to help all they care about it’s to make their commission. I still getting calls from them everyday even though I’m on a payment plan with them. I contacted them so they can stop the calls and I still getting them. Now I’m going to make a complaint to the federal trade commission because that is considered harassment.
In order to get them to work with me I made a complaint to consumer finance and I got in contact with Sallie Mae student advocate office. I gave them a down payment and now I’m making $100 a month until pay in full. Now they reduced my interest to .01% because I haven’t missed any payments. Below are the link for the consumer finance and the number for Sallie Mae student advocate. I hope this helps.
Sallie mae student advocate: 1-888-545-4199
05-19-2013 09:13 PM
depending on who is your lender most of them will work with you but Sallie Mae. It’s better if you try to work things out before they garnish your wages.