Subscribe to our mailing list

X

I Just Finished a Chapter 13 Bankruptcy But Have Parent PLUS Student Loans and National Collegiate Student Loan Trust

By on November 8, 2016

Question:

Dear Steve,

Just got out of Chapter 13 Bankruptcy (finished all five years faithfully). NOW am getting tons of student loan (Parent Plus) for my two kids. I lost my job over a year ago and was forced to take early social security at 62. Could NOT find a job I could do. I had an injury to leg. So out of my social security check I have to pay health insurance, and expenses…. I NEVER thought I would be in this helpless state; no money, old car, and strapped with almost 85K of loans. (I had an excellent job). I feel like I’m in a catch 22. JUST received a letter from National Collegiate Student Loan Trust 2007-4. Delaware Statutory Trust, demanding payment. They had my last name misspelled.

How do I pay back Parent Plus and co-signed loans of over $85k for two students, when I’ve lost my job, injured my leg and at my age (62.5) can’t find anything. Had to take early retirement. Healthcare takes up a lot of what I am taking home. I don’t know what to do? IF I find a non-profit I can do from home full-time, would that help in Parent Plus loans???? I’m baffled along with thousands of other parents in this same situation. I don’t know where to even BEGIN….AND can the Nat’l Collegiate Student Loan Trust bring me to court?

Meanne

Answer:

Dear Meanne,

Well on the federal student loans the simplest approach would be to consolidate the Parent PLUS loans into a new Direct Loan and opt for the Income Contingent Repayment option. This will give you the lowest, or now payment required, based on your income and expenses. This will never repay the loans but it will keep you out of default and avoid 19% in additional fees that can be added to what you owe for collection costs. You can find instructions and links on how to do this for free, here.

READ  Obama Proposes Tax Help for Student Loan Relief. Congress Says No.

The National Collegiate Student Loan Trust (NCSLT) sound like they might have been private loans. NCSLT can certainly sue you but there might be two issues. First, if your income is strictly Social Security and benefits then if they sued you and won they may not be able to garnish your wages or income.

Second, there are real issues with the ability for lenders with NCSLT loans to be able to prove they have the standing to actually own the loan. This is something that can e challenged in court. I would suggest looking at these past NCSLT articles for more on this.

morehelp1
Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Share a Comment / Leave a Reply

%d bloggers like this: