Thread regarding ITT Educational Services Inc. layoffs

Bankruptcy as the only option?

my husband has just been served today because of 2 of his student loans (They are private loans) totalling together 4,552.73.

These two loans were through SLM Education Credit Finance Corporation(We are not sure it this is Sallie Mae or PEAKS) and the credit agency was Jefferson Captial Systems and the law office they're going through is Shermeta Law Group. We got no letter from these people prior to this We have no idea what to do at this point and no money for a lawyer.

So far, we keeping being told bankruptcy but we really don't want to do that and don't really see a point in doing that if we can't put the loans in bankruptcy. He went to ITT Tech-Troy. We live in Michigan. can somebody get us pointed in the right direction or offer advice for this please?

Thanks in advance...

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Post ID: @LBrEQNC

4 replies (most recent on top)

@1okj - thanks

@mgd - thanks

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Post ID: @LBrEQNC-3jrd

Try to refinance them with a lender who charges rates more in line with federal subsidized/unsubsidized loans (and one that doesn't contain all those penalties and booby traps). Then pay 50-100 month against the 5K--it should be paid off fairly soon, and you can deduct the interest off your taxes.

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Post ID: @LBrEQNC-1okj

You may want to take a look at the information on the below site.

http://www.nolo.com/legal-encyclopedia/student-loans-bankruptcy

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Post ID: @LBrEQNC-brq

Happened to us too and unfortunately ours was so big and a little too far from the end of the statute that we had to go into chapter 13 bankruptcy.

It did not dismiss our loans but kept them from suing for 5 years. The mistake was that they charged high interest and capitalized the debt, doubling what we owed. Truly avoid that if you can.

Seriously double check the statute of limitation in your state. But, I have heard in some states even acknowledging your debt with them on the phone can start the clock over.

But I'm not sure how accurate that is. Keep it in mind. Also, if you can find a consumer protection attorney or one who deals with student loans, usually the first consultation is free or even like $30 to $60.

Well worth it to be informed and then decide what you want to do. Good luck.

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Post ID: @LBrEQNC-mgd

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