Author Topic: Defaulted on a private student loan, need some clarification  (Read 1491 times)

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windchaser90

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Defaulted on a private student loan, need some clarification
« on: January 05, 2017 06:12:15 PM »
I defaulted on a private student loan taken out in Pa but I now live in SC. It's been a year. If the collectors sue me and try to take out a judgement on me, would it be filed for the state the loan was taken out in or the state I live in? I hope that made sense.

How likely would they try to take out a judgement on my personal property?  I don't own a house, land or car and all the stuff I own altogether is worth maybe between $2,000-$4,000. I don't make much money and my bank account holds less then $200 at any given time for some personal bills. I live with my parent's so the rest of my monthly pay goes to food and household bills. The money owed is around $11,000.

I really need things clarified for me. Most of the language in laws just goes over my head so I'm having a really hard time trying to look up information and understand what I do find. I know wages can't be garnished in PA and SC and I vaguely understand the property exemptions for each state, though I had a hard time finding for PA, but I'd appreciate if information on exemptions could be listed in simpler terms.

Any help in understanding better would be greatly appreciated.

coolboy300

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Re: Defaulted on a private student loan, need some clarification
« Reply #1 on: January 06, 2017 04:22:26 AM »
i can help out

Clydesmom66

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Re: Defaulted on a private student loan, need some clarification
« Reply #2 on: January 06, 2017 05:34:30 AM »
I defaulted on a private student loan taken out in Pa but I now live in SC. It's been a year. If the collectors sue me and try to take out a judgement on me, would it be filed for the state the loan was taken out in or the state I live in? I hope that made sense.


They would have to sue you in South Carolina where you currently live.

How likely would they try to take out a judgement on my personal property?  I don't own a house, land or car and all the stuff I own altogether is worth maybe between $2,000-$4,000. I don't make much money and my bank account holds less then $200 at any given time for some personal bills. I live with my parent's so the rest of my monthly pay goes to food and household bills. The money owed is around $11,000.

Not likely since you have non assets of value that would make seizing them worth the expense and work.  You are also in luck in that SC does not allow wage garnishment for civil debts.
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Bruno the JDB Killer

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Re: Defaulted on a private student loan, need some clarification
« Reply #3 on: January 06, 2017 01:15:01 PM »
If they get a judgment, your bank account can be levied. Then you'll have to fight them to get it back if it qualifies for an exemption. Better you not use it if that happens.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Bobby12

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Re: Defaulted on a private student loan, need some clarification
« Reply #4 on: January 06, 2017 08:14:23 PM »
Unfortunately, I've been through this rodeo a few times. Before you start worrying about a judgment, let me ask a few questions. Who did you default on? Is it the same as the company listed on your promissory note? How long ago did you default? How much is the default amount? Are you being contacted by any collection agencies? Have any collection attorneys contacted you? It can take years after defaulting before they will file suit, if at all. Do you have other private loans? Have you considered BK? Regardless of the conventional wisdom, under the right circumstances, private (NOT federal) student loans can be discharged.

windchaser90

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Re: Defaulted on a private student loan, need some clarification
« Reply #5 on: January 06, 2017 11:24:02 PM »
I just want to make sure, so they can't find some way to sue me over this using PA state law since I live in SC now?

I think the loan was originally maybe $8,000, with interest it's now $11,306. I took it out with Citizens Bank and defaulted Dec. 2015. I got a letter a few days before Christmas about it. They hired Schlee & Stillman. I don't have any other private loans. The letter says if I don't contact them within 30 days, they'll assume the debt is valid and obtain verification of the debt or copy of a judgment,  if any, and mail me a copy. I don't know what BK is, I'm horrible with acronyms. I never made any payments on it before it defaulted or after. I can't afford to pay this, make payments or pay an attorney. I really don't know what to do.

Bobby12

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Re: Defaulted on a private student loan, need some clarification
« Reply #6 on: January 07, 2017 04:50:51 AM »
I just want to make sure, so they can't find some way to sue me over this using PA state law since I live in SC now?

I think the loan was originally maybe $8,000, with interest it's now $11,306. I took it out with Citizens Bank and defaulted Dec. 2015. I got a letter a few days before Christmas about it. They hired Schlee & Stillman. I don't have any other private loans. The letter says if I don't contact them within 30 days, they'll assume the debt is valid and obtain verification of the debt or copy of a judgment,  if any, and mail me a copy. I don't know what BK is, I'm horrible with acronyms. I never made any payments on it before it defaulted or after. I can't afford to pay this, make payments or pay an attorney. I really don't know what to do.

Make sure that you send them a letter by certified mail and tell them that you are disputing the debt. If they're calling you, you can add in that you do not want to be contacted. From what I can tell Schlee & Stillman is just a collection agency, not an attorney and as I previously said, the private loans can hang around for years before they file suit, if at all. When did you take the loan out and when was it supposed to go into a repayment status? On the letter, does it say that Citizens Bank is the original creditor? And BK means bankruptcy.

windchaser90

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Re: Defaulted on a private student loan, need some clarification
« Reply #7 on: January 07, 2017 06:48:44 PM »
Citizens Bank is the original creditor and it went into repayment in like Aug or Sept 2015. Says attorney's at law under Schlee & Stillman on the letter and that at this time no attorney with their firm has looked at the case yet. I did look at bankruptcy but I don't think I can when I've never even made a single payment on the loan. The debt is completely right and true, what point is there to dispute it? Will contacting them just make them work faster at taking me to court?

Also, they can't find some way to sue me using PA state law since I live in SC now? I want to be 100% sure on which state laws I need to look into and keep in mind over all of this. SC has better laws on property protection and it might seem a bit petty but I'd never be able to afford to replace anything I could lose, not with the financial pit me and my family are in right now.
« Last Edit: January 07, 2017 07:01:11 PM by windchaser90 »

Bobby12

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Re: Defaulted on a private student loan, need some clarification
« Reply #8 on: January 07, 2017 09:53:54 PM »
Citizens Bank is the original creditor and it went into repayment in like Aug or Sept 2015. Says attorney's at law under Schlee & Stillman on the letter and that at this time no attorney with their firm has looked at the case yet. I did look at bankruptcy but I don't think I can when I've never even made a single payment on the loan. The debt is completely right and true, what point is there to dispute it? Will contacting them just make them work faster at taking me to court?

Also, they can't find some way to sue me using PA state law since I live in SC now? I want to be 100% sure on which state laws I need to look into and keep in mind over all of this. SC has better laws on property protection and it might seem a bit petty but I'd never be able to afford to replace anything I could lose, not with the financial pit me and my family are in right now.

How long have you lived in SC? Do they have your current address or was the mail forwarded? As far as the debt dispute, you can sit in a fetal position and wait for a default judgment or decide to fight back. Tell them you want the full contract and see what they send you. It sounds as if you don't have much to worry about anyway. If there's no wage garnishment in SC and you don't have any cash or property, they may decide that you're not worth the trouble. And, the fact that you didn't make any payments on the loan is irrelevant as far as bankruptcy. Let me ask a few more questions - why did you take out private loans? Did you use up all of your federal loan eligibility? Did you actually use the private loan for school? Or did you use it for something else? Was the private loan certified by the school or did you deal directly with Citizens? I realize that 90% of BK attorneys will tell you that there's nothing you can do but just remember that attorneys are lazy and take the path of least resistance. There are options available to you to fight this. 

windchaser90

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Re: Defaulted on a private student loan, need some clarification
« Reply #9 on: January 08, 2017 02:38:10 AM »
I've lived in SC for 1 year and 2 months. They have my address. The first semester of university I couldn't get enough federal aid to pay for the semester so I had to get a private loan. It was all fixed after that semester so that's the only private loan I took out. Took the loan out through the Citizens Bank website through their student loan section. It all went to the school.

Bruno the JDB Killer

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Re: Defaulted on a private student loan, need some clarification
« Reply #10 on: January 08, 2017 03:17:06 PM »
Better check SC law, sometimes going to college in a particular state does not constitute residency.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

windchaser90

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Re: Defaulted on a private student loan, need some clarification
« Reply #11 on: January 08, 2017 04:31:44 PM »
All I'm seeing for constituting residency in SC is living in the state a consecutive 12 months, having a state drivers license or ID card, a permanent address, statement of employment, taxes in the state. I have all of those and I'll be filing taxes, thought I wasn't working the full year since I've lived here but I'm not seeing that or state I graduated schools (HS/College) in being any problem.

Clydesmom66

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Re: Defaulted on a private student loan, need some clarification
« Reply #12 on: January 08, 2017 05:21:59 PM »
All I'm seeing for constituting residency in SC is living in the state a consecutive 12 months, having a state drivers license or ID card, a permanent address, statement of employment, taxes in the state. I have all of those and I'll be filing taxes, thought I wasn't working the full year since I've lived here but I'm not seeing that or state I graduated schools (HS/College) in being any problem.

I spent 5 years living in SC if you have all of that you are a resident and they will have to sue you there. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

Bruno the JDB Killer

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Re: Defaulted on a private student loan, need some clarification
« Reply #13 on: January 08, 2017 07:54:31 PM »
I agree with Mom. Start formulating a defense, stop concentrating on procedural matters that don't matter.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

aintgonnapay

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Re: Defaulted on a private student loan, need some clarification
« Reply #14 on: March 17, 2017 10:39:58 PM »
Good luck in beating these nasty sharks!
Student loan indentured servant in $100,000+ debt to private lender Sallie Mae. 100% unable to pay even close to the minimum monthly payment.

 

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