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What Can I Do About My Student Loans? – M

My student loan debts were accrued sometime in 1993 when I deferred. I had consolidated all my loans by then. Due to inability to find a job, I defaulted. In or about 2003, I was able to gather some certain about $70,000 which I wanted to use to pay off my debt. I think my student loans were around in the ballpark of 130K, but Sallie mae and their agents settled all the debts and returned my documents. A year plus later, I got a call from the government that I owed them about 100K based on a $30K that was transferred by Sallie Mae. The accounting was wrong and insofar as I can see, the government has no documents substantiating their claims for $100K. I am embroiled in a lawsuit which I filed b/c I got sick and tired of being railroaded and noone was accountable.

My debts unfortunately fell after bankruptcy changed its law. And right now, I have no options. Do you know what available remedies that is available? I offered to pay about $30K the principle that they claim, but not the $70K which they claim are interests and fees.
They don’t have documents other than some internal ledgers and I would rather settle this and move onward but $100K seems ridiculous based on what I have seen.

Do you know if the government will pass any measures that will give student borrower like myself the ability to settle, and the ability to have forgiveness ?

This type of law and policies are changing, but it seems better on paper and being that I am in an odd situation, I’d like to know. I raised this issue to AG Cuomo, and his office has rejected it b/c realisitically, why would his office investigate his own state agency?


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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.

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