I and my family are struggling to afford decent living, and we simply do not have extra money to pay off the debt. Believe me, I want to pay off the debt more than the school wants me to pay. I have not finished my college education, and I want to be able to go back someday.
For the first few years, I was receiving letters and phone calls from collections agency. I once talked with the agency and tried to set up a payment plan. But the agency wanted an initial payment of several thousand dollers, which I did not and still do not have. I also asked if I could work out direcly with my school, which the agency denied.
Today, I received a letter from the university's attorney! What happens next? Am I going to be sued??!! Any advice will be greatly appreciated. Please help!
Contact the attorney and explain your situation, they should be willing to work with you if your financial situation is really that bad. If they won't work with you and plan on suing you, you may need to file bankruptcy. Just remember, bankruptcy is a last resort and remains on your credit report for up to 10 years, don't do it unless you have no other way of managing your debts.
most universities in ny wont even let you attend until your bill is paid, never heard of such a thing...
Usually if you hear from a collections agency it means that the school has sold the debt and you would not likely hear from the school again. You would be at the mercy of the debt collectors.
Call the university immediately, the attorney or someone fairly high up in the financial aid department to determine if there is a way you can set up a payment plan with them. Usually if it's gone to collections it is too late for that.
Likely if the university tries to sue you for the money the judge will set up a payment plan - it may or may not be based upon your income level. You may see if you are eligible for low-cost attorney assistance. A lot of large cities have firms that work with people who don't have much money.
Join the military i did 4 years in the army and now i get close to $2,000 a month to go to school,, and what may you ask did i do in the military Jack $hit i traveled to several countries and have friends all over the world. What kind of regrets can you have from that I ask?
Write a letter and enclose a $20 check.
Tell them that you want to honor the debt but can only afford $20 a month.
Send the letter by registered mail or with confirmation so you know they received it.
If you can go to an attorney and see if they can send an official letter saying that you can only afford so much a month.
The university can take you to court and if they win they will get a garnishment of your wages. Before this happens go into the university and try to speak to as many people in the administration as you can.
Show them your paystubs. They should be understanding. If not, go to the local news, let them know what is going on.The university may feel bad if they start getting bad press.
First u need to get ur paperwork in order. Don't file bankruptcy unless legal aid has advised u too! Ur ruining ur credit rating which will haunt ur your entire adult life... Send in a payment to the university lawyer with a letter, keeping a copy of the money order and letter explaining ur situation. Pay another payment to the lawyer with the University as the payee next month. Be timely, don't skip even if it means no McDonald's, movies, eating beans & rice for awhile. They need to see ur serious in repaying the loan. As the lawyer to ask the university to waive the added fees and interest that has acurred. Continue to pay. If if they fill a lawsuit and take u to court it goes along way to the judge reviewing ur case especially if small claims court. U need to pay the debt that u incurred and not sluff it off. The lawyer and the university might even eventually writing off some of the debt once they see a good faith effort on your part to ACCEPT RESPONSIBILITY. I encourage u to read onling David Bach newsletter... about the Latte factor... u can find it at Oprah's website too on her series of America's Debt Diet. U will be suprised how much ur spending that could go to this loan and clean up ur credit rating... Good luck, realize it's no quick fix but u have the power to undue the damage to ur credit and life.
Don't know why you had take out loans, if you were studying as an undergraduate student and had a PELL Grant (you don't have to pay back) This is a federal subsidized loan. If on the other hand you were a graduate student, you probably had to borrow from the Stafford loan program you have to pay this back. That why is always good to look into, internships, scholarships and other programs to pay for your studies. Also don't know at what year you dropped out, however, the sooner you go back and finish, the better you will be able to survive in this fast changing technological society-where a university degree is very essential
If you have been contacted by a collection agency, that means your loan has gone into default, and your loan has been sold to a private agency. That is why you have to respond to calls and letters promptly. Don't know how much time has elapsed, but there are things called, deferments, and cancellation of loans-depending on medical reasons, financial hardship, consolidation of loans etc. This site may give you some information on where and what to do. Read every part carefully. Don't sit on this too long. Hope this helps. Good luck
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