AES & First Marblehead Help!!!

Long story short, when I was 18 in 2006, I signed a private loan for school with my step father as a co-signer. We knew nothing about loans for school, so now I regret this.

Anyway, we were going through AES for my loan. After my first year, I had no means to keep paying for school and had no credit to take out a loan. I was scared to do it alone and my mom and step dad went through bankruptcy, so I took 6 months off. I paid the first few payments due, then lost my job. I knew nothing about forebearance, I was just a kid. In 2007 I got a new job and went back to school part time. I had a falling out with my family and moved out, and have not really turned back since unfortunately. My step father had moved out and our relationship was already horrible from day one, so when I asked about my loan he said he was paying it. When I was not getting letters or calls about my loan, I believed him.

Well, he wasnt. Now I am way in default. I tried calling AES, but they told me to call some place (she could not remember the name!) called First Marblehead to talk about paying the loan. Clearly, I do not have thousands upon thousands of dollars laying around to pay it all off (who does?) but I recently rehabbed a Federal loan with monthly payments faithfully with no problem and wanted to rehab this loan to defer it again. I have a co-worker who was in a similar default situation and she is back on track in deferment after a 10 month payment plan.

They gave me 866-236-6606 number for First Marblehead, and out of curiosity I Googled them. Not thrilled with what I found, and their website literally says nothing about students, defaulted loans, or what they do other than asking for investors and schools for their business...It looked nothing like a collection or defaulted loan agency...So I am wary about calling them and getting screwed. It just seemed fishy that NOWHERE online could I find any valuable information about what they are about, or see anyone who may have had to deal with them for a little advice or guidance.

Has anyone here had to deal with First Marblehead when trying to sort out a defaulted loan? If so, will it be possible to rehab this loan and make monthly payments, or am I in for a fire storm...

I was under the impression that as long as you can pay something, they cannot say "no" per se, and they are not allowed to demand a lump sum before they will let you...But I know nothing about loans, and am so lost in what I can do to get on track. Someone please help!

This is a private loan, not a federal loan. First Marblehead is or was also called TERI. With private loans, you have no deferments, no hardship payemnts...nada. Private loans are like normal consumer loans except you do not pay them while in school. There terms were pretty clear on your prom note that both you and your step signed. Did you read it? Did the step read read it?

Privates do not offer rehab or consolidation. Basically you will be in default until you pay it off. If it is not paid off quickly, both of you will be sued...it is pretty standard procedure for privates. Is your step aware of this??? They will sue, garnish and perform bank levys on both of you. You should probably be talking to your step to figure a way out of this quickly...