topic Re: Walking away from Sallie Mae ?? !! in General Credit Topics

Walking away from Sallie Mae ?? !!

Anonymous — Fri, 05 Sep 2008 20:07:12 GMT

I am constantly told by people that due to the inablility to find ANY solution to high SL monthly payments, that people are actually walking away from them ! I am not thinking this is good, but I am starting to see no way out for my brother, he is about to loose everything by paying these loans. Please has anyone survived later from this action?

Re: Walking away from Sallie Mae ?? !!

Anonymous — Fri, 05 Sep 2008 20:53:11 GMT

Um, walking away from Student Loans is NOT a smart move. If private loans they will quickly sue, if federal they have the ability to garnish wages, bank accounts, etc.

Is he in default? Has he tried to have them rehabbed? He may want to see about consolidating, etc.

Message Edited by UpUpUp on 09-05-2008 04:53 PM

Re: Walking away from Sallie Mae ?? !!

fishbjc — Fri, 05 Sep 2008 22:51:27 GMT

He can walk, but he cannot run. These loans are not forgiveable. If they're federal, he will have future wages garnished, income taxes checks snatched, etc. He'll also get dinged on his credit severely.

He should call them and try to work *something* out. Walking away is going to do nothing but prolong the agony of repayment.

Re: Walking away from Sallie Mae ?? !!

Anonymous — Sat, 06 Sep 2008 02:13:27 GMT

They are private only, and Sallae mae wont consolidate them these days. I dont know what other options they have offered, but I cant imagine him doing anything that drastic like walking., unless he has no choice. yousay fed loans can be garnished, but what about if they are private. If he looses everything else, what could they take in a lawsuit, esp. if he's also filed chap 7. He has had aterrible year.

Re: Walking away from Sallie Mae ?? !!

Anonymous — Sat, 06 Sep 2008 02:15:03 GMT

He hasn't yet filed chap 7, but if it comes to that he will, what then can sallie mae do to him?

Re: Walking away from Sallie Mae ?? !!

Anonymous — Sun, 07 Sep 2008 19:33:30 GMT

Basically, if he plans to keep working, he will pay the money back eventually. If the loan iwas secured using a federal guarantee program, it won't be discharged without showing undue hardship (i.e., total disability). They will refer the loan to collections, take his income tax return every year and garnish his bank account and wages (up to a certain amount, e.g., 15% of disposable income). This is an administrative process. It is done by notice that a decision was made to start the garnishment on a particular date. The borrower has limited grounds to appeal. I suppose he could try to negotiate for rehabilitation at that point, but I am not sure.

It might take a year or two before the garnishment occurs, but until that time the interest keeps accruing on the principal. So, the real issue is how long can he hide.

Re: Walking away from Sallie Mae ?? !!

Anonymous — Sun, 07 Sep 2008 19:38:34 GMT

Private loans can sue and then end up possibly garnishing, etc. too! I have never filed BK, but as far as I know, SL can't be included in BK. Someone else can tell you for sure though.

Re: Walking away from Sallie Mae ?? !!

Anonymous — Sun, 07 Sep 2008 20:51:59 GMT

They made it really hard to get rid of student loans when it became almost a sport for people fresh out of college to declare BK to get out of them without even trying to pay them. They had doctors'lawyers fresh out walking out on 100+K in student loans. 2 years later they were making 100K plus per year without any student loan debt. By the time they were in there mid 30's, they had tons of money, the BK had dropped off, and they had plenty of credit available.

Re: Walking away from Sallie Mae ?? !!

fishbjc — Sun, 07 Sep 2008 23:37:39 GMT

My brother filed bk, but he could NOT include his student loans. They were private and the collectors were coming out of the woodwork...constantly calling my mother.

He finally called this past week and they're willing to work with him on the interest, etc. At least he's making an effort. Your brother is going to have to pay what he owes. Tell him to call and discuss other options.