I have both federal and private loans through Sallie Mae. I used my private loan to pay for housing for my child and I. Sallie Mae is working with me in paying back my federal loans by using the income based repayment alternative. However they will not lower my monthly payment on my private loan to an amount that I can afford to pay each month. They want me to pay 84.00$ a month and all i can really afford is half that. They say that my private loan will go into default and they will go after my co-signer and myself with legal action if I do not pay the 84.00$.
My question would be, What are my options? Why will they not lower the payment to something I can afford and would be willing to pay every month? Also, would I be able to file bankruptcy on the private loan?
Sounds about right. Unlike a federal student loan there is no requirement for any private student loan holder to do anything with a private student. If there is a cosigner involved they have the right to go after the cosigner for the balance due. But then again that’s what the cosigner agreed to when they agreed to accept the responsibility, so no surprises there.
Now it is possible that if the private student loan was not used for an allowed educational expense at some colleges then they could be easily discharged in bankruptcy. You can read this article for specifics on how this can happen.
You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.
Please post your responses and follow-up messages to me on this in the comments section below.Big Hug!