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My Student Loan Story From Hell. – Jody

“Dear Jeremy,

My student loan story of hell.

Between 1985 and 1989, I took out student loans to the total of approximately $14,000. Being a single mother, thought education would get me a better job than a factory job. So I got my education and could not find a job that would pay me enough to pay rent, electricity, gas, cable (could not afford to go to the movies, or other entertainment), food, gas for my car and up keep on the car, and daycare (which at times I was responsible for all or part of it).

In 1998, I filed bankruptcy and included my student loans (but because of bad legal advise, no hardship paperwork was included in the bankruptcy) which at that time amounted to approximately $23,000. The garnishment for the student loans started in December 1999, approximately a year and half after my bankruptcy had been finalized.

As of today, approximately $26,000 via my garnishment and this does not include the amount that had been paid before the filing of my bankruptcy, one tax return taken, and the garnishment, and according to the NSLP, I am in default and I still owe approximately $39,000 and none of which has gone to the principal of the original loan.

I am also wondering why if in fact if I was in default on my student loans, why is my credit so good, In the last six years I have been able to secure several loans one for a home and just recently for a car and have received several credit cards.

When I contacted NSLP that the only remedy was to redo the remainder of the amount owed (approximately $38-39,000) to a 25 year loan and any amount remaining after the 25 years would be forgiven, but I would have to claim it as income and pay taxes on it.

I did not sign up for an interest only loan, but that is what I currently have.

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Thank you.


Dear Jody,

Student loan debt is one of the most oppressive forms of debt. Many people are currently facing the same burden as you are. As you are aware it is very difficult to discharge in bankruptcy. In many instances there is also no statute of limitations for collection. To top it off, a creditor has an easier time collecting student loans compared to other debts as they can often perform a tax intercept or wage garnishment without first filing a lawsuit.

Here’s a couple things you should look into. First, if you have been harassed by a collection company trying to collect the debt you should contact an FDCPA lawyer to pursue claims against the collector. Second, a reputable consumer attorney or debt settlement company could help you negotiate a lower payment. Just make sure to get copies of the promissory note and verification of the account. The numbers that you identified seem high and you should verify their accuracy. Finally, you can consult with another bankruptcy attorney as it has been more than seven years since your previous filing perhaps you can re-file and try to include some of these loans.

Jeremy Golden, Esq. is one of the resident debt experts here at that helps people for free. Jeremy is a consumer rights attorney licensed to practice in California. He represents individuals in cases against debt collectors for violations of the FDCPA. He also focuses on defending people in collection cases who have been sued by their creditors or debt- buyers. In the last five years he has won at trial or obtained a dismissal in over 200 collection cases. Recently he was voted one of San Diego’s Top Attorneys in the field of Consumer Law by SDMetro Magazine. His website is

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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