jmo Posted March 20, 2007 Report Share Posted March 20, 2007 Hi all, my first post. I live in New York. I took a loan from SM in 2002 for a tech course. the whole loan was for ~20k but I did only a small portion of the program. soon after starting the program, I became unemployed for a year and then underemployed for another year - I couldnt afford to keep up the payments on this loan. They sent me statements reflecting a total balance due of $4,000. they made several threatening calls to my work and harassed me and whoever else would pick up the phone (too bad I didnt know then what I know now!) until I left that job and got another one. they have stopped calling me and writing me altogether now. I have a lot of other debt and am trying to dig my way out. I can afford to pay off the 4k in one lump sum but I pulled my Credit report and SM is reporting that I owe them 35k! I do not have a copy of the original agreement.it seems like the first step would be to do a debt validation? but if they hear from me, wouldnt they just initiate a wage garnishment on the 35K now? they were very very mean on the phone and I'm kinda scared of them. anyone have any advice? please help? Link to comment Share on other sites More sharing options...
gypsie Posted March 21, 2007 Report Share Posted March 21, 2007 Seems to be the 35k could be 20k + interest.Lynn in MN is the expert of the student loan forum, so I'm sure she'll jump in here soon.In the meantime...You say you pulled out of the course early, so the debt was 4k instead of 20k. If that's the case- seems the school where you were enrolled would have documentation of what was refunded back when you dropped the course early. (Since you say you don't have your original agreement) Maybe you should start by checking there, if you're worried about calling Sallie Mae first.BTW, DV is for CAs/JDBs not OCs. Does your CR indicate that your student loan is still with SM? Link to comment Share on other sites More sharing options...
jmo Posted March 21, 2007 Author Report Share Posted March 21, 2007 I could call the school, that's a good idea. my credit report is hard to read, but yes, it does indicate that the loan is still with sallie mae. Link to comment Share on other sites More sharing options...
LynnInMN Posted March 23, 2007 Report Share Posted March 23, 2007 What was the withdrawal policy for the school?? Most programs have strict withdrawal policies...after 1st week 25% refund, 2 week 50%, 3 week ..you get the picture. It is possible you are responsible for most or all of the entire cost of the course. As for the $4k...could that have been the past due amount??This also sounds like a private loan. These loans have higher interest rates, extremely limited forbearances and collection fees up the wazoo. You have to be in default and SM more than likely has you with a CA. Private loans are nasty. They almost always file for judgement. They do not participate in any of the federal programs like rehab or consolidation. Also they are not dischargable in BK> Link to comment Share on other sites More sharing options...
jmo Posted March 26, 2007 Author Report Share Posted March 26, 2007 you are right. It is a private loan. the 4K represents the amount of the program I attended -- less than 1/4, which was fair. so far they have lost touch with me, but I'm sure they will find me sooner or later. hence my original question -- if I contact them to pay it down, wouldnt that just open a can of worms with them going after me for a judgment? plus it's prob. already with a CA, as you say. I would appreciate any advice. Link to comment Share on other sites More sharing options...
LynnInMN Posted March 26, 2007 Report Share Posted March 26, 2007 Private loans generally will file suit if you don't contact them. You are better off contacting them and making voluntary arrangements. Link to comment Share on other sites More sharing options...
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