I obtained a PRIVATE student loan through AES. These are strictly Private student loans.

When it came time for payments, there was no way I could afford that or the graduated repayment level. I started paying what I could each month. It is now been obtained by another collections agency.

The woman who called me threatened me every which way but Sunday. I was also told that Private student loans are 'stricter' than federal student loans and they will follow me for the rest of my life. They don't have the same 'rules' as other creditors. (all this per the CA) Anyways, I keep paying monthly what I can. Eventually they will go into default, I understand.

What are my options? I live in Texas and have been trying to read up on what can and can't be done in Texas.

There is no way I can pay even close to the amount they are requesting monthly. They threaten to put a lien on my home and attack everything related to my social. We don't have savings and own one older car. I can't pay in full or even negotiate settleing because I don't have that kind of money.

So what can they eventually do? What should I do? Keep paying what is pennies to them, but a lot for me?

TIA!

If a CA is already calling you, you have already defaulted. Yes they are more difficult to deal with...they do not have the deferment/forebearance priveleges that federal loans offer.

They will eventually sue you for the balance even if you are making payments. Did you have a cosignor???

Yes a CA is already calling me.

My husband co-signed. Since I pay the bills, I know how much money there is to send every month.

I was reading though in Texas, they can not garnish wages? Is that true? Even if there is a judgement towards you? Does it not show that at least I am in good faith, but at least trying?

Also they threatened to take my federal income tax, can they do that?

I tried to read up on Texas laws, but some of the stuff is confusing!

I wanted to add:

So if they sue for the full amount. Where will they get it? We have a mortgage. Don't plan on selling the home. Have no other assessts, savings, etc.

Again I am in Texas, I thought they couldn't garnish wages?

Im thinking even on a private student loan they will be able to garnish in Texas because its a student loan. Not just a regular debt which they wouldnt be able to garnish. I am not 100% for sure on this though but Im confident that is the case.

No...private loans cannot garnish like federal loans....they are not eligible under admin wage garnishemnt.

Interesting...Mmmmm....

I have tried to look on the internet, but I can't find a whole lot of information. It's all pretty much the same such as Private SL are not the same as Federal. I read that Private SL are like unsecured debt, but they have that "student loan" attached to them.

I found this (don't know how reliable this is):
http://www.bills.com/blog/stop-garnishment-on-student-loans/


Hopefully someone will know for sure?

thats a good thing to know THANKS. Im not affected but for future reference if this comes up again. OP im sure they should still be able to levy a bank account and possibly go after the house so be careful

That's good to know too. I believe in Texas as well they can't make you sell (or put a lien) against your primary residence.

It doesn't really matter, we don't plan on selling. We plan on staying forever in this home! LOL!

We don't have savings or anything else either..unfornuately.

They cannot force you to sell the house but they can definately put a lien against it.

In this day and age " It doesn't really matter, we don't plan on selling. We plan on staying forever in this home! LOL!" is pretty naive. Marriage failure is huge and things do happen. This is a tiger you will want to get off your back quickly. Increase your income, do something.

I am not trying to sound so naive about the situation by any means. I understand divorce and other situations happen and neither can be predicted. However we are doing what we can do at this point in time.

I also understand what you are saying that if they put a lien on the home and we sell (for whatever reason) then they would get their money. However if we don't sell then they would not.

Private student loans are not nice and if I knew now what i knew then, I would have never applied for them. I read they can default on your private sl if you die, if they think you are unable to make good faith on your loans, your income changes, disability, etc.

As far as increasing our income, I am lucky we both have full time jobs in this day and age. We both work 40+ hours a week.

Again not trying to make light of the situation. I am doing the best I can at this moment. I still have to provide for my family and ensure the necessities are met first and foremost.