QUESTION
If I already received a letter forgiving my student loan, can the lender still run after me?
Asked on Oct 01st, 2013 on Bankruptcy - Michigan
More details to this question:
I received a letter forgiving my $150k private student loan for total and permanent disability. Dept. of Education already forgave my Federal loan. Now the lender is trying to take it back because they forgave it in April before their insurance signed off and will have to eat it out of pocket so they are now threatening me to pay the loan off. My paperwork is solid and their forgiveness letter is the real McCoy. They want me to start over and sign away any and all rights protecting my medical records while starting over the year long process while paying on the loan. Will their forgiveness letter hold up, and how do I deal with their threats and tactics to keep me and my co-signer on the hook for the money ? Thank you for any help you can offer.
3 ANSWERS
William M Stoddard
Sounds like you need to just tell them go for it if they think they can make a case that you still owe the money. There are a few questions I might ask in follow up, but please understand that forgiveness from the agency does not necessarily bind the lender. But the lender had a duty to pursue reimbursement from the agency which forgave the debt (that is why there is insurance by the government, and it sounds like they failed to apply to get the paid amount until too late.) That does not make you still responsible for their error. Now if you failed to do something to help them get paid, well then you might still be on the hook.
Answered on Oct 07th, 2013 at 3:29 AM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
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If the party attempting to collect is a debt collector, it is an Fair Debt Collection Practices Act violation. Check your credit reports; if the loans are not shown as forgiven you need to dispute with credit bureaus in writing (copy to furnisher of information); if not corrected, sue under Fair Credit Reporting Act.
Answered on Oct 02nd, 2013 at 10:48 AM
Divorce Attorney serving Bingham Farms, MI
at
Gottlieb & Goren, P.C.
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Your paperwork has to be reviewed very carefully. Did they agree in writing to release your co-signer? On what basis did they agree to release you? Why are they going back on their written word?
Answered on Oct 02nd, 2013 at 10:36 AM