I posted this elsewhere but didn't get any suggestions....

Back in 2001 I paid for tech school that cost 29,000 with student loans through Sallie Mae except for a few hundred bucks that I paid out of pocket. Never paid on the loans after my A.S. degree, nor applied for any type of deferrals. Moved like 4 times over the years.

The last two years I have been getting my act together and four months ago I began a loan rehabilitation program after getting the creditor info (DCS) from Sallie Mae. My tax refund was also intercepted for the first time this year. The loans totaled about 32,000 now, which sounded right to me due to interest and such from the original 29,000

Sallie Mae sent me a couple Invoices over the last three months and when I finally called today to see why they were sending invoices while I was in a re-hab plan already, they told me that a loan from 06/14/01 for 4,992 and a loan from 01/31/02 for 3,372 were both PRIVATE student loans and therefore were sold to a different creditor than the other FEDERAL loans that the plan covered. I asked for copies of the original promissory notes (I have no paperwork outside of what they sent me recently) and was told to call the creditor (Oxford mngmnt). I called and kept being transferred to people who assurred me that there was no original paperwork on file but told me that the new amount owed on those two loans was over $27,000 (up from 8800 total?!) and told me that the only "program" they could help me into would be a plan to pay off 30% broken up over 6 months coming to over 1,200/month which is consider the "economic hardship" plan. They're also accruing almost $400/month in interest and there's no way to stop it, pause it, or reduce it except to pay off the balance in full (!!) I kept insisting that I would like to see the original prom. notes before working anything out (not that I could anyway since they were unwilling to take less than HALF of my family income each month) but that I was honestly working on getting my debts paid. Eventually they gave me the number to another office in their company where they said my notes were being held, only this time they told me I would have to get the notes from sallie mae after another hour of run around. I call sallie mae AGAIN and they tell me that the creditor should have my stuff but she would "talk" with them about the issue, and in the mean time send out the prom. notes for my two private loans in the next few days. Yay.

So, my household is 2 adults/3kids surviving on total 2,600/month income which includes fince's SSDI, her part time job, and my full time job. No assets but an old van...plus we're already paying 300/month to the federal loan rehab (the lowest they would let us go) program which is KILLING us on top of rent, utilities, other debts, food, diapers, gas to work etc.

Can I do ANYTHING to get back on track? I have the federal loans covered with my re-hab plan but the private loans I seem to have no options with....less than 400$/month and I'm not even past that month's interest!

ttt.

Private loans are completely outside of the federal system. Interest is higher as are the payments. No rehab, no SOL, and no BK. Their is no way to get them back on track like federal loans. Only way to resolve the default is to pay it off.

If they are completely putside the fed system then, are they subject to the higher education act??

And if not, then what laws are they governed by?

Private loans are a unique breed of loans. BK rules are in the BK code. Not sure if they are mentioned in the HEA. Check your prom note....it will quote any applicable laws.