My question involves collection proceedings in the State of: MA/NH
I live MA, but my student loan company is out of NH.
When I graduated from college in 2008 the economy was bad, and it took me a full year to find a job (a job other than minimum wage retail type jobs). I worked for about 6 months before the place I was working out went out of business and it was nearly impossible to find a job again because "I didn't have enough experience" and there weren't many jobs available. After a year of working minimum wage retail and not being able to land a job I went for a management position for the retail company I was working for. I ended up working there 5 years because now it was impossible to get back into my field because I didn't have the experience and I had no recent experience. Finally after doing freelance work and applying left and right I got a job in my field at an upstart. But unfortunately they weren't getting the business and I soon after got laid off.
I am in the same boat, fractured experience and not enough experience. Every job I apply for I don't hear back or don't get the interview because I don't have 3-5 years experience. And when I apply to jobs outside my field I am told I am over qualified, or that they are looking for someone to work this job as a their career and that they are not looking for someone just to fill this position until a better job opportunity comes along. This leads me to being able to only finding part time, 18 to 22 hours per week average minimum wage jobs which are far and few between because I live in a rural area. My Unemployment Benefits ran out in February that were making up the difference from what I could make at a minimum wage job to what I was making before getting laid off.
I was able to continue to pay my student loans until June, but then my bank account ran dry. I ran out of money had to move back in with my parents.
I called up my private student loan company and asked for a different or economic hardship and explained that I was out of money, still looking for work and can't afford to make payments. They told me I had a year worth of time available and that they would mail me the forms.
Well, they mailed me the forms which I got a week later, I field them out and mailed them in. 2 weeks later I get letter back from them saying my economic hardship request was denied.
Not only that, they now are sending me past due notices for my June payment which was due June 3rd and informed me my student loan was now in default.
I called them up to find out whats going on, where I found out they had sent me the wrong forms. The forms they sent me for were Federal Student Loans and I have a Private Student Loan. So they sent me the correct forms in the mail and here I am having to wait a week again to get the forms.
When I got the correct forms in the mail I had a question about something on it so I called them up. The person I spoke to then said that I only have 11 days available, and my loans will still be past due / in default after applying the economic hardship and that I needed to make a payment which I had no money to do so. Since the hardship request wouldn't even take care of the June Payment and catch me up I never sent it back in.
A week later they call me looking to collect on the student loans, and saw in the notes that I had requested paper work for a economic hardship request and why I haven't sent it back in yet. I explained how I was told it wouldn't help my case and I only had 11 days of hardship time available. The person researched it, then came back and told me that that information was incorrect and I have a year, plenty of time and get that request in as soon as possible.
So I scanned it and emailed it to an email address she provided me.
2 weeks later they are still calling me looking for payment and sending demand noticed in the mail. After talking to them I find out sure enough, they only applied 11 days of economic hardship to my account. I questioned this and said I was told I have a year available. The lady I was talking said you should have a year and submitted my account for review.
It took a couple weeks for the review to come back and here is what they tell me.
You only had 11 days of economic hardship available. We told you the wrong information. The cause of the confusing is my current loan is a consolidation of 12 individual private student loans. While I have used no economic hardship on the current loan, some of the individual loans prior to the consolidation were under economic hardship and I exhausted all my hardship time there. Private student loans only have a total of 12 months of economic hardships. I have no further option available to me because I have a private student loan. No income based repayment, no more deferment, no repayment plays.
They continued to mail me and call me demanding payment. When I take to them again once again a lady was telling me I should apply for a economic hardship if I can't make payment, I should have a year of time available. This really aggravated me. They keep telling me that I have a year available, but then keep coming back and saying no you don't so I asked to speak to a manager.
I explained my current situation to the manager and how I keep being told I have a year of hardship time available and then how it keeps coming back that I don't. And I was asking if she could work with me anyway and honor what they said, or at least give me 3 months more of hardship time. Anything to work with me.
And she just said sorry, but you have a private student loans, you have no option available to you. The only thing you can do is make a payment. If you can keep sending us money and keep the account from falling 60 days past due we won't report it to credit agencies / turn it over to collections.
Well, not trusting them I looked up my credit report. They have been reporting me past due every month including the month of June as soon as my first payment went past due. They report the past due amount as well and my credit has been complete destroyed falling nearly 200 points since June.
Also, they are now sending me certified letters saying if I can't pay the entire past due balance, late fees and Septembers Payment by September 3rd the entry past due amount will be sent to collections.
I called them again, and asked them about this and asked them about what the manager said about if I can make a payment and keep it from going 60 days past due it would not go to collections. And once again I was told I was told the wrong information. I need to pay the entire past due amount or they are sending it to collections.
I did some research online and found that you can work with your private student loan lender and ask for modifications of your loan. They can give you a few extra months of hardship, lower your interest, reduce your payments / extend your loan. I called them and tried working something out with them but once again all they want to tell me is "You have a private student loan, you have no options available".
I can't afford to make any kind of payment to them at this time. And if I don't land a full time job in the next month I am going to be in serious financial trouble and could start falling delinquent on other bills as well.
What is the best advice or anything I can do to work out this issue with my private student loan lender?
Thanks you
I live MA, but my student loan company is out of NH.
When I graduated from college in 2008 the economy was bad, and it took me a full year to find a job (a job other than minimum wage retail type jobs). I worked for about 6 months before the place I was working out went out of business and it was nearly impossible to find a job again because "I didn't have enough experience" and there weren't many jobs available. After a year of working minimum wage retail and not being able to land a job I went for a management position for the retail company I was working for. I ended up working there 5 years because now it was impossible to get back into my field because I didn't have the experience and I had no recent experience. Finally after doing freelance work and applying left and right I got a job in my field at an upstart. But unfortunately they weren't getting the business and I soon after got laid off.
I am in the same boat, fractured experience and not enough experience. Every job I apply for I don't hear back or don't get the interview because I don't have 3-5 years experience. And when I apply to jobs outside my field I am told I am over qualified, or that they are looking for someone to work this job as a their career and that they are not looking for someone just to fill this position until a better job opportunity comes along. This leads me to being able to only finding part time, 18 to 22 hours per week average minimum wage jobs which are far and few between because I live in a rural area. My Unemployment Benefits ran out in February that were making up the difference from what I could make at a minimum wage job to what I was making before getting laid off.
I was able to continue to pay my student loans until June, but then my bank account ran dry. I ran out of money had to move back in with my parents.
I called up my private student loan company and asked for a different or economic hardship and explained that I was out of money, still looking for work and can't afford to make payments. They told me I had a year worth of time available and that they would mail me the forms.
Well, they mailed me the forms which I got a week later, I field them out and mailed them in. 2 weeks later I get letter back from them saying my economic hardship request was denied.
Not only that, they now are sending me past due notices for my June payment which was due June 3rd and informed me my student loan was now in default.
I called them up to find out whats going on, where I found out they had sent me the wrong forms. The forms they sent me for were Federal Student Loans and I have a Private Student Loan. So they sent me the correct forms in the mail and here I am having to wait a week again to get the forms.
When I got the correct forms in the mail I had a question about something on it so I called them up. The person I spoke to then said that I only have 11 days available, and my loans will still be past due / in default after applying the economic hardship and that I needed to make a payment which I had no money to do so. Since the hardship request wouldn't even take care of the June Payment and catch me up I never sent it back in.
A week later they call me looking to collect on the student loans, and saw in the notes that I had requested paper work for a economic hardship request and why I haven't sent it back in yet. I explained how I was told it wouldn't help my case and I only had 11 days of hardship time available. The person researched it, then came back and told me that that information was incorrect and I have a year, plenty of time and get that request in as soon as possible.
So I scanned it and emailed it to an email address she provided me.
2 weeks later they are still calling me looking for payment and sending demand noticed in the mail. After talking to them I find out sure enough, they only applied 11 days of economic hardship to my account. I questioned this and said I was told I have a year available. The lady I was talking said you should have a year and submitted my account for review.
It took a couple weeks for the review to come back and here is what they tell me.
Quote:
You only had 11 days of economic hardship available. We told you the wrong information. The cause of the confusing is my current loan is a consolidation of 12 individual private student loans. While I have used no economic hardship on the current loan, some of the individual loans prior to the consolidation were under economic hardship and I exhausted all my hardship time there. Private student loans only have a total of 12 months of economic hardships. I have no further option available to me because I have a private student loan. No income based repayment, no more deferment, no repayment plays.
I explained my current situation to the manager and how I keep being told I have a year of hardship time available and then how it keeps coming back that I don't. And I was asking if she could work with me anyway and honor what they said, or at least give me 3 months more of hardship time. Anything to work with me.
Quote:
And she just said sorry, but you have a private student loans, you have no option available to you. The only thing you can do is make a payment. If you can keep sending us money and keep the account from falling 60 days past due we won't report it to credit agencies / turn it over to collections.
Also, they are now sending me certified letters saying if I can't pay the entire past due balance, late fees and Septembers Payment by September 3rd the entry past due amount will be sent to collections.
I called them again, and asked them about this and asked them about what the manager said about if I can make a payment and keep it from going 60 days past due it would not go to collections. And once again I was told I was told the wrong information. I need to pay the entire past due amount or they are sending it to collections.
I did some research online and found that you can work with your private student loan lender and ask for modifications of your loan. They can give you a few extra months of hardship, lower your interest, reduce your payments / extend your loan. I called them and tried working something out with them but once again all they want to tell me is "You have a private student loan, you have no options available".
I can't afford to make any kind of payment to them at this time. And if I don't land a full time job in the next month I am going to be in serious financial trouble and could start falling delinquent on other bills as well.
What is the best advice or anything I can do to work out this issue with my private student loan lender?
Thanks you
Settling a Debt: What Options Do You Have After Defaulting on a Student Loan
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