Reader Questions Sallie Mae

I Want to Know More About the Private Student Loan Bankruptcy Act of 2010. – Porter

I did not know I had any debt until 4 years ago when I got a call from a creditor. Apparently my parents had put most of my student loans in my name and took out a credit card and racked up $4,000.00. I paid the credit card, but now my Sallie Mae private loan in $32,000. I live very modestly and have never exceeded my means, but now I am drowning in collection phone calls. I cannot afford to make payments, but when I save it feels like I am throwing away money. My credit is ruined because they went unpaid for 7 years. My parents are financially irresponsible and I vowed never to live that way and I am having trouble confronting the fact that I am now exactly like them.

I read that a bill just got passed called the Private Student Loan Bankruptcy Fairness Act of 2010. Firstly, is this true? If so how soon can I declare Bankruptcy? If I have been saddled with a private student loan that is now $32,000 and that exceeds our budget is this the best step for me? Or should I wait to declare Bankruptcy in case my financial situation gets worse? If my credit is already ruined due to years of difficulty paying these bills is it worth it to throw money at them every month when I feel as if I will never fully pay them off. Especially when we need every penny we have.

Porter




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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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