Can an agreement with a CA be rescinded?

[Puppeteer]

My son's student loan has just been sent to collections. Even though we mapped out a plan to send the DV with a C&D, and then do everything in writing, he answered a call from them on Thursday. I was in the next room and did not hear all of the conversation except that he was dutifully providing the info on what he earns and owes, and his banking information. An hour later he tells me that he agreed to make payments of $180/month.

 

BRIEF PAUSE WHILE I REGAIN MY COMPOSURE

 

He was told it would be rehabbed in 6 months, which he wants because he was being garnished until he was laid off, but I see his agreement as paying $180 (a full quarter of his current income) until it's paid off.

 

Question is: Is there a grace period within which time he can rescind this agreement and renegotiate the terms?

[LynnInMN]

My son's student loan has just been sent to collections. Even though we mapped out a plan to send the DV with a C&D, and then do everything in writing, he answered a call from them on Thursday. I was in the next room and did not hear all of the conversation except that he was dutifully providing the info on what he earns and owes, and his banking information. An hour later he tells me that he agreed to make payments of $180/month.

If this is a federal loan, you do NOT DV or cease and desist....although it is your legal right, he knows he owes it and can easily verify who is collecting on it. They will NOT negotiate any agreement in writing.

 

 

BRIEF PAUSE WHILE I REGAIN MY COMPOSURE

 

He was told it would be rehabbed in 6 months, which he wants because he was being garnished until he was laid off, but I see his agreement as paying $180 (a full quarter of his current income) until it's paid off.

Rehab is 9 months, not 6. And depending on how much he owes, $180 might be the required 1% payment.

 

If he can afford the $180, he should be paying it, regardless of it being 25% of his income.

 

 

 

Question is: Is there a grace period within which time he can rescind this agreement and renegotiate the terms?

Edited August 15, 2010 by LynnInMN

[Puppeteer]

There is no question that he owes it and wants to pay it. He is very conscientious about his paying debts. What I failed to mention is that his income at the moment is entirely unemployment benefits. I am concerned that if there is any change in those that he might be in over his head.