Student Loan Help

[mi6sa]

Hey guys like most of you I too have a ton of student loan debt. With the burden of the student loans, I cant buy a house, a new car, or get any other type of credit to help my situation because of the debt to income ratio. The lenders have the law on their side for now and are reluctant to help us. They simple ignore my plead for a deferment or for modified graduate payments. Once i sent them a check for 100.00 as it was all i could afford and they sent it back to me saying that they need the full amount. I have searched high an low for ways to payback my student loans and I am currently using Upromise and i also signed up for a free account on a brand new website [link removed] to receive money to pay for my loans.

 

My question is has anyone faced default with AES (American Education Services- services for TERI- Private student loans? I am currently 45 days past due and they have been calling me nonstop but they dont want to help me by offering me a reduced payment. I was told that they want you to default so that they can tack on as much as 1/3 of your loan in collection fees and legal fees. Is there some sort of law against this? We cant get rid of our loans through bankruptcy but yet its to their advantage that they want you to default so that they can add more money to your principal knowing that you have to payback and they can garnish your wages. What is the deal?

 

Any information will help out. Thank you.

Edited November 13, 2007 by cotterpin

[LynnInMN]

These are the risks you take when you borrow private loans. You have no protection under federal law. These are specialty loan products that allow you to borrow without making payments while in school and without collateral. They are not required to offer modified payments or extra deferments. AES is simply to servicer for TERI...they have to follow what TERI requires.

 

Private loans do not do admin wage garnishment like federally insured loans. TERI will sue for judgement. The consequences of defaulting on a private loan are more drastic.

[cotterpin]

I understand you are new here but please do not post outbound links to sites without prior permission from Admin. Here is a link to the Terms Of Service http://creditboards.com/terms.php you may want to peruse them

 

thanks

[Cynic]

TERI will sue you and get a judgment. They will be able to tack on legal fees if the court allows (they probably will). The amount of post-judgment interest they can tack on will be limited based on state usury laws. In my state I think its 8% per year using the simple daily interest method (same method as used on all student loans federal or private, and some mortgages).