Is it true?

[phill56]

I have a private student loan that's past due 120 days; I'm being told that after 150 days, it'd go into default. I intend to pay it off, but just need some time at this moment.

 

Is it true that paying as little as $1 a month could prevent it from defaulting, meaning the lender could not legally consider it defaulted and send it off to some collection agency?

 

Thanks.

[LynnInMN]

I have a private student loan that's past due 120 days; I'm being told that after 150 days, it'd go into default. I intend to pay it off, but just need some time at this moment.

 

Is it true that paying as little as $1 a month could prevent it from defaulting, meaning the lender could not legally consider it defaulted and send it off to some collection agency?

 

Thanks.

 

 

Nope, urban legend.

[TxQuiltGirl]

I have a private student loan that's past due 120 days; I'm being told that after 150 days, it'd go into default. I intend to pay it off, but just need some time at this moment.

 

Is it true that paying as little as $1 a month could prevent it from defaulting, meaning the lender could not legally consider it defaulted and send it off to some collection agency?

 

Thanks.

 

 

No, I don't think that is true. Have you called and/or talked to whoever holds your student loan? You should try to work out something with them because if it goes into default and they get a judgment, depending on where you live they can garnish your wages. If you think you have financial troubles NOW you can't imagine what it's like when someone garnishes your wages.