Defaulted Loan Question

[Richk71AL]

Hi,

 

My name is Rich. In the mid 90s while on SSI and SSD I tried going to a 2 year college to try and get a degree

I applied for financial AID. I hoped to have been granted grants because of my disability status. However this was not the case. I was awarded loans. I wasnt sure about what I was getting myself into. The person that was explaining the process said it pretty fast and I didnt totally understand what was happening. The whole process was overwhelming to me.

 

Turns out I didnt finish school. Because of certain situations in my life my symptoms were worsed and I could not handle the stress of being in a classroom. So I had to quit. That was around 1995. I havent been able to work since and I'm still on disability. I havent been able to pay off the loan. Financially I've been in a bind ever since. The loan has gone into default..The stress of this as only aggravated my disability

 

Is there anything I can do to get rid of this burden in my life. I have made several attempts to contact the collections company handling the loan but they havent worked with me to get this straightened out. Well they have sent me a form twice that I had to fill out..Stating that I was on Disability...but I havent heard from them.

 

I understand that this was a responsibility of mine. But I got to tell ya I tried..Just couldnt do it.

 

Rich

[LynnInMN]

Hi,

 

My name is Rich. In the mid 90s while on SSI and SSD I tried going to a 2 year college to try and get a degree

I applied for financial AID. I hoped to have been granted grants because of my disability status. However this was not the case. I was awarded loans. I wasnt sure about what I was getting myself into. The person that was explaining the process said it pretty fast and I didnt totally understand what was happening. The whole process was overwhelming to me.

 

Did you read what you signed?? Right above your signature is this statement. "This is a promisory note. I will not sign this note until I have read and understand the terms of this note."

 

Turns out I didnt finish school. Because of certain situations in my life my symptoms were worsed and I could not handle the stress of being in a classroom. So I had to quit. That was around 1995. I havent been able to work since and I'm still on disability. I havent been able to pay off the loan. Financially I've been in a bind ever since. The loan has gone into default..The stress of this as only aggravated my disability

 

Is there anything I can do to get rid of this burden in my life. I have made several attempts to contact the collections company handling the loan but they havent worked with me to get this straightened out. Well they have sent me a form twice that I had to fill out..Stating that I was on Disability...but I havent heard from them.

 

Probably not. Your condition pre-dated the loan and the lenders get pretty picky about this point. At this point you really should be looking at consolidating the loan to get it out of default and then go on the income contingent repayment plan, which due to your income will be very low. Best I can suggest.

 

I understand that this was a responsibility of mine. But I got to tell ya I tried..Just couldnt do it.

 

Rich

Edited July 20, 2006 by LynnInMN