Student debt collector becoming rude day by day

I have an education loan, which I received in 1994. I live in Chicago. A few days back I received a call and someone told me that I have to pay the loan amount immediately. I think the SOL of Chicago has expired already. The lady told me that she will garnish my wages if I don't pay. Is that possible? I have missed only a few installments, since I lost my job. Right now I am employed again, so can repay my loan but a lower amount. Plz advice. If the SOL is over, I wud ignore the call. I don't care about my credit score.

As far as I know student loans are the one thing that do NOT go away.

They're something that you get to get an education to make more money, and they will garnish your wages.

One sticky situation that most people can get into is getting their loan paid by the company they think they're going to work for for the rest of their life, get the entire loan paid off by the company, and then get fired. Then...the company will be the one after you because of some contract you signed.

Education/student loans is something that cannot be avoided.

Have you asked about what type of payment plan they can offer? That you can remember...did you ever have a payment plan. If you broke the payment plan they may not be willing to work with you.

If the calls continue to be harassing of nature, tell them you can only contact you by mail. You may need to send them a CEASE & DESIST letter if the harassing calls continue.

Let us know what happens-
Mike

PS: Anyone know if education can be declared part of your bankruptcy?

Hi Sophia,

Welcome to forums. You haven't mentioned the type of student loan that you owe, however, as Mike has said, no SOL is applicable for federally funded loans. Federal Government has all the right to get the loan amount back, even by wage garnishment.

However, for non federal loans, wage garnishment is not possible without court order.

It seems that you had a temporary problem in repaying the loan. If your current status permits, then start paying the loan. There are some mechanisms discussed in this forum about how to keep your loan account current, several repayment options etc. Go through those posts and select your way.

For any more info, feel free to post your queries in the forums.

Bryan

There is no statute of limitation on defaulted student loans, and since they are government money you can be garnished after as little as sixty days of nonpayment. You should care about your credit score because you need a good credit score in order to weather the unexpected in life. It is also important to keep educational funding circulating so that others can have access to it and get the education they need in order to live their dream. Don't spoil it for others just because you don't care about your credit score!