Hi. Right now, I owe Sallie Mae about $2000 in back pay. In order to bring my account current, I have to pay that OR sign up for a program where they draft a certain amount of money from my bank account per month. The problem is, I work part-time and dont get paid that much so I dont know If im going to be able to stick to the payments for a long period of time. So i wanted to know, if I make small payments (even though my account is way overdue) would they be able to put me in default?
Yes, you should be able to enter a loan rehabilitation program that will allow you to make small payments that you can afford. But, he will not be able to rehabilitate your loan unless you make those payments on a consistent basis. The Federal Student Aid Office of the Ombudsman http://www.ombudman.ed.gov will provide information if your lender will not assist.
A default occurs when you are 270 days past due. So you may have indeed defaulted at this point. However, you have the opportunity to rehabilitate the loan. Of course, the downside is that this will take some consistent monthly payment from you. Best of luck.
Lynn Ellen ColemanLawsuit / Dispute AttorneyKernersville, NC ·
You have received some great responses and yes, you will either go into default or you are already in default by now. Sallie Mae services both Federally guaranteed and private educational loans. I think the other attorneys were assuming you have Federal loans. If you are talking about private loans, the opportunities the other attorneys mentioned to you would not apply. You also do not mention the details about the program they have offered you, and it may be too specific to discuss here. I suggest you have a personal consultation with an attorney experienced in student loans to make sure that you become fully informed about all of the options you have available - and to make sure Sallie Mae is dealing with you honestly.
This is a private loan, which means you defaulted when you missed the first payment and you cannot get it out of default after missing 4 payments - the loan charges off. You're being offered a program that I've heard of before, and I've never seen work. Further, what's the point if you can't afford the payment that will come after the program? If you can't pay, you can't pay.
As to your other questions, only federal loans can take social security, private loans cannot. Regarding credit reporting, once your account is charged off, payments don't show up on your credit report. Despite what you think, you cannot save your credit. That should be the least of your concerns. You simply cannot afford this loan. Talk to a student loan lawyer who can review your budget and your options, if any exist, and start managing your fear.
