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What is a reasonable payment plan?

Date: Sun, 01/30/2011 - 22:18
Submitted by on Sun, 01/30/2011 - 22:18
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Not sure where to begin with DCS. My husband cosigned on a student loan for my daughter and she let it default (which is a whole 'nother issue!). We don't want my husband's wages to be garnished so we'll have to step in and take care of it. It's a private loan that is $9100. I would like to offer $2000 now and payments of $350. Is that reasonable and do you think they would accept it? I intend to pay more when I can, but want to know where to start the negotiations. Anyone have any ideas or experience? Thanks!


Student loans do NOT settle like other consumer debt and that was not even the posters question.

Op....are you sure this is a private loan? Or was it a PLUS loan?

Unfortunately, the word reasonable doesnt come in to play with private loans....they are not required to offer you a reasonable plan. However what you offering sounds like a reasonable plan.


Submitted by SOAPLADY on Mon, 01/31/2011 - 03:49

SOAPLADY

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Soaplady, thank you for your response.

No, it was not a PLUS loan...it was a private loan through TERI. I am going to call the ombudsman today to find out if it is eligible for rehab but I doubt it. I know that the collection agencies are not reasonable, but I have heard that they will set up payment plans. I just don't want to offer an amount too high that we can't handle or an amount too low that will just force them into possibly sueing.


Submitted by on Mon, 01/31/2011 - 06:29

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Well, the only upside of that is that they can't do an administrative wage garnishment, right? They would have to sue and get a judgement. I would imagine that if I make regular payments, they would be a little less inclined to sue and if they did, a judge would see that we are being cooperative and continue the payments. Of course that is the perfect world in my head!

I appreciate you taking time to answer my questions.


Submitted by on Mon, 01/31/2011 - 19:49

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Private student loans will still sue even if you are making payments. It really means little to the judge that you are making payments.....breach of contract is breach of contract and the holder is entitled to their judgment. However sometimes it will result in a contingency judgment, allowing you to make your payments. In exchange, the holder promises to to garnish or levy as long as your payments are made on time.


Submitted by SOAPLADY on Tue, 02/01/2011 - 03:19

SOAPLADY

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Student loans are now becoming more and more difficult for students to pay.Due to this, college students from around the country delivered 130,000 letters to Congress on Tues. The letters all ask Congress to act before student loan rates increase on July 1. The current lower rate is a result of 2007 Democrat-supported regulation that is due to expire. Republicans in Congress say the move is too costly. Democrats say it is only fair. Source of article: Undergrads rally in D.C. to protest student loan hikes.

:cool: :cool: :cool:


Submitted by nancy_turner2012 on Sun, 03/25/2012 - 22:46

nancy_turner2012

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Quote:

You can???t settle student loan debt. However, you can contact a reputed debt consolidation company and see whether or not they can help you consolidate the loan.
Wrong on both counts. Student loans CAN be settled although not to the same extent that other debts will settle. They WILL settle off on the collection fees which can be up to 24% for loans. And they CANNOT be included in a consolidation loan program.


Submitted by SOAPLADY on Sat, 04/07/2012 - 05:32

SOAPLADY

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