I have both private and public student loans. I am currently paying on both and am current. However, at one time I was not and on my private student loan – which was through National Collegiate Loan and Trust, I was sued by the firm Blitt and Gaines, PC.
However, we settled before it went too far as I started making payments again. This was about 3 1/2 years ago. I currently pay them $250 a month and it seems as if my amount I owe NEVER goes down! I feel like I’m getting no where!! And, I pay my public loans $240 a month. (I know that my public student loan debt is valid and they are charging accordingly.)
What can I do to help settle and get my private student loans down? They do report the money I pay to the IRS, as I get a tax statement every year. But I know the amount they say I still owe. Like $30,000 is NOT what I originally took out as a loan. THey’ve charged me ridiculous fees, etc. Help!
I’m afraid this is a real good news, bad news situation.
The good news is that the National Collegiate loans are a total mess and it seems that when most people push them on validating those loans, they can’t. At the very least they will offer to either completely eliminate the loan or substantially change the terms or balance.
The bad news is it appears the debt may have been validated as part of your settlement process. You’d absolutely need to discuss that with an attorney who is licensed in your state.
But now that there is a suit, settlement, and payments it becomes even more critical to get legal advice before you do anything. For example, you could have a stipulation agreement and if you default on the payments they could go straight for a judgment and garnishment.
The unknowns here are vitally important to dealing with this situation. You can look for a student loan attorney here.
Without legal advice I would not urge you to take any steps to deal with the debt.