I received a complaint in the mail yesterday from an attorney representing National Collegiate Trust. My mother and I are both co-signers on this loan. As far as I had known my mom had contacted a debt counseling agency a couple of years ago, JHass, to negotiate this debt and another one. The last time I talked to Jhass..about 6 months ago, they were still trying to settle the loan from National Collegiate, and so far were getting no where from them.
In this complaint it states that I have made no attempt to pay on this loan. Which I don't see as being completely true, as I did make attempts and they refused to work with Jhaas.
My question is, should I call National Collegiate and attempt to work out a payment plan? Or should I call the attorney and attempt to work out a payment plan. I can't really afford to get a lawyer and go to court and get a judgement against me.
I am no expert but what I can tell you is debt counseling agencies cannot really help you with student loan debt. In most cases they can only help with credit card debt. It is really bad that the counseling agency did not tell you this.
I would recommend calling National Collegiate they will be able to tell you what your options are. Or they can say it is out of our hands now, at this point you will need to contact the lawyer.
If you do end up having to go to court, and you know for a fact this debt is yours and you have not been paying it is a waste of money getting a lawyer.
I agree with shazer7. Not making payments when you know that you owe, will only hurt you in the long run. Call them and explain your situation and start making payments immediately. If they will not accept your payment for any reason, tell them to send you something in writing explaining that. If they have referred your account to collections, contact them immediately and find out what your options are with them. You don't want to end up in court; so get started on this as soon as possible (if you have not already done so).