CreditBoards > Is it true?

phill56

Feb 24 2006, 07:57 AM

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

Feb 24 2006, 08:08 AM

QUOTE(phill56 @ Feb 24 2006, 06:57 AM)

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

Feb 24 2006, 08:09 AM

QUOTE(phill56 @ Feb 24 2006, 06:57 AM)

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.