11-21-2012 07:49 PM
So a little background. I owe approximately $19,000 to Wells Fargo in private student loans. Due to some personal problems, I was forced to go through bankruptcy which was just finalized earlier this month. As soon as my bankruptcy was filed, Wells Fargo closed off access to my account online which is where I have always paid my loans. It is completely my fault for not realizing this, but I was under the impression that the loans were in deferment during bankruptcy and that upon discharge I was to pick up where I left off (which is exactly what Sallie Mae did with my loan through them). My attorney never told me any differently. Apparently during the bankruptcy process, Wells Fargo charged off my account. Now that I am trying to begin repayment again, they are doubling my payment from $193 per month to $387 per month and refusing to take it out of charge-off status even if I agree to that amount. Since I was unaware that I was even supposed to be making payments during bankruptcy, I have offered to pay $300 per month until my loan is caught up and requested that once the payments have been caught up to have my $193 payments reinstated. They are refusing to do this and demanding $387 per month or else they will send it to collections. I am trying to work with them, but they are not the only student loans I owe and I have to be realistic about what I can afford. I've read some about rehabilitation but I'm not sure if this is an option with Wells Fargo or how to go about requesting it if it even is available. What are my options? What is the best course of action to take? I've tried contacting my bankruptcy attorney for advice, but they were not interested in helping.
11-22-2012 12:02 PM
Welcome to the forums!
Private student loans are tough to deal with. They generally don't have the same kinds of flexible payment options that federal student loans do. I am not positive, but I don't think that rehabilitation is an option for private student loans. Have you asked Wells Fargo what other options they are willing to offer you? I definitely would not rely on your bankruptcy attorney.
Also, I don't think there is such a thing as taking accounts out of charge-off status. I think once they've been charged off, all you can really do is pay off the balances. But you can try & see if there are better repayment options for you.
11-23-2012 06:04 PM
My suggestion would be to walk in and hand them cash for your payment every month. Chances are, they will accept the cash payment. Get a receipt and make copies of it! (Later proof that you paid.)
Or give them a choice...would you like $198 once a month or $100 every two weeks?