Cease and desist

[Anonymous]

Will a cease and desist work on a collection company for student loans. I’m not really in a position to repay the loans now, but I should be within a year. Robert

[erika]

You don't say what kind of student loans you have.

If you have a stafford, perkins or any other government student loan, do not ignore the collection company any further.  I say this because these loans are not like normal debt.  Wages can be garnished at any time without any form of litigation.  A cease and desist will force this to occur faster.  Once this begins, it will continue until the loan is repaid.  Contact them now and work something out.

If the student loan is private, I would also not recommend using a cease and desist.  Depending on your initial loan paperwork, they may be able to begin a garnishment without litigation.  If your initial loan paperwork doesnt allow this, then a cease and desist may cause a private student loan issuer (via the collection agency) to initiate litigation.

In both cases, I would recommend contacting the collection agency for the student loan to explain your situation and to work something out.

Good luck!!!

[LynnInMN]

You never cease a student loan account.  If you are currently working, you will find yourself being garnished quicker than you can bat an eye....and they do not need a court order.

[cam006]

Have you checked into getting a hardship forebarance of graduated payment agreement?  

[MattH]

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@Anonymous wrote:
Will a cease and desist work on a collection company for student loans. I’m not really in a position to repay the loans now, but I should be within a year. Robert

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Student loans have an extra-special legal status, they can garnish your wages without going to court like a normal creditor, they are almost impossible to discharge in bankruptcy, etc., etc. By far your best option is to request a forbearance from them but do so very politely because they have extra-special legal leverage and they know it.

[Anonymous]

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@Anonymous wrote:
Will a cease and desist work on a collection company for student loans. I’m not really in a position to repay the loans now, but I should be within a year. Robert

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Then, IF they are Federal-backed loans (as opposed to private-held), you're in luck!

Federal backed loans can be rehabbed. Rehabbing your loan will require $50/month payments for 9-12 months (depending on what kind of Federal loans they are). The "Default" status will be cleared, they'll be marked "Pays as Agreed" and the loans will come out of collections.

Contact the guarantor of the loans and discuss what needs to be done vis a vis rehabbing! The sooner you get this taken care of, the sooner you can breathe easier!!

Best of luck to you!!