Defaulted AES Private Student Loan****Help Please*****

[acyoung9368]

So I have finally started taking the steps to repair my credit from my younger years of irresponsibility.

 

One nagging problem on my credit report is a old Private Student loan that I had that has been in default for almost 1 1/2 yrs now. They have not garnished any wages or taken legal action as of yet, or even requisitioned my tax return last year. When I spoke with them early Jan 2012 they were completely uncooperative and refused to accept any terms except the ones they were setting forth. The original loan was through AES and is now with a CA whom I spoke with. They basically told me that if I didn't comply to their terms they would get their money anyways since it's a federally backed loan, and they could garnish wages and/or hold my tax returns. Original loan was for 13000, and now is somewhere in the range of 22000 after all their fees. They literally told me; they would put me down down as a refusal to pay since I couldn't afford their terms. One last piece of information, I am still in school, although this loan originated almost 4 yrs ago, I am in my final year of classes.

 

Aren't I entitled to still be in forbearance?

 

Are Private student loans allowed to be rehabilitated?

 

What options do I have to get this loan back in good standing?

 

Any help would be greatly appreciated, Thanks in advance!

[acyoung9368]

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[acyoung9368]

Still looking for some help on this topic, anybody????

[breeze]

Hi, welcome. I'm not an expert in student loans, or I would be happy to help. Someone will come along soon and help you. Student loans are very different than other kinds of loans, and it takes someone who really knows the ropes to help get these straight. Be patient, keep bumping - keep this on the front page.

[hodap2001]

If this is a private student loan (non-federally backed student loan) then you have very little recourse. You do NOT have the same entitlement benefits of those who have a federally backed student loan; therefore, no deferment, forbearance, or rehabilitation. You must pay back the loan regardless. The CA is also correct that they can obtain a wage garnishment against you; however, they must go through the court system and obtain a judgement which I'm sure will be forthcoming. I've never heard of a CA going after a tax refund on a private student loan - only on federally backed student loans; therefore, you need to confirm whether if this is a private student loan or a federally backed loan.

[acyoung9368]

I know for a fact that it is a private student loan. I have no problems setting up an arrangement to repay the loan (I'm sure I will be paying on it for the rest of my life), They wanted something like 2000$ up front and then some ridiculous amount per month. I offered terms that I could afford and they simply said they would put me down as a refusal to pay and that they would not accept my money unless it was there terms. I have considered filing BK but all the research I have done says that it cannot be included in that process. I am really at my wits end with these guys and it's obviously not going anywhere, and my credit continues to suffer. I am wondering if it would be advantageous to hire an attorney to negotiate with them? Is this even possible? anybody else out there tried this? I have done a lot of research on how to rectify these types of loans and it is not promising. Private student loans are such a different monster and everything I have read simply states that I am at their mercy and that they dont negotiate bc they are guaranteed to get their money regardless.

[acyoung9368]

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[acyoung9368]

Bump

[acyoung9368]

I could really use some advice here guys, any suggestions would be greatly appreciated. I have had so many negative avenues, anything positive would be awesome.

Thanks

[hodap2001]

I would recommend that you reach out to the Consumer Financial Protection Bureau and see if they can help you. Their website address is http://www.consumerfinance.gov/

 

Good Luck!

[acyoung9368]

I will definitely follow up with this, just one question......I am assuming I should use this to file a complaint against the company?

[acyoung9368]

any other advice guys?

[hodap2001]

Not necessarily as a complaint against the company but a stepping stone to try and help you acheive a lower monthly payment which you desire - I've heard some positive feedback on this Federal Agency and the assistance they may offer.

[Carla_P]

I was in a similar situation also with AES. NCO financial was the company that was collecting on it. I filed a complaint with the CFPB. This got the ball rolling. I have 114k in debt with them and am currently paying $75/month all thanks to CFPB. Within a few weeks NCO was begging to help me, on my terms. Unfortunately this is only good fot 6 months at which point we will review my situation. I'll update you later on that. Make sure you file a complaint against both AES and the CA. Good luck!

[hodap2001]

Thanks for posting the good news about the CFPB Carla_P.

[LynnInMN]

Really with private loans, how can the CFPB be of any help? These are not government loans and they have no power or jurisdiction if the CA and guarantor are following procedures. In the case of Carla above, she is going to get sued...not a matter of if but when. Filing complaints against AES and the CA could possibly speed up the legal process.

[Carla_P]

Really with private loans, how can the CFPB be of any help? These are not government loans and they have no power or jurisdiction if the CA and guarantor are following procedures. In the case of Carla above, she is going to get sued...not a matter of if but when. Filing complaints against AES and the CA could possibly speed up the legal process.

 

Thanks for the optimism Lynn. But I am doing what we agreed upon, IN WRITING. They still will sue me I'm sure. But I believe if I'm doing what we agreed upon it may be a while as opposed to just ignoring them altogether.

[Carla_P]

I should mention don't listen to me, I'm no student loan guru. I can only tell you how it has worked for me. The credit guru will no better than me.