Re: Student Loans.....have a question

Posted by jm10101 (198.80.153.10) on February 11, 2003 at 12:34:22:

In Reply to: Student Loans.....have a question posted by basketlady on February 11, 2003 at 11:46:26:

It's you and your husband's business WHY his student loans are not being paid, but I hope you realize that if these loans are backed by the government, they will never go away.

There is no SOL on these types of loans and they will sit there, gathering interest until someone goes after them. When they do get turned over to a colletion agency, the CA is permitted to add up to 25% to the balance for their fee. If they get a judgment, add lawyer's fee + court cost AND the interest keeps accruing. Don't forget, if they are defaulted, State + Federal tax refunds can be garnished in their entirety. If you file jointly, that could be your money.

He's in luck if it's not in the hands of a CA and should considering rehabbing the loans with the guaranty agency. 12 consequective voluntary monthly payments can get you back on the good side of the loan and save a lot of money down the line.

If they are from private sources and not government backed, then an SOL may apply. How long ago did he stop paying?

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