QUESTION
My problem is with Sallie Mae. It started in 2008 when i declared Bankruptcy. I had a federal loan with them and a private loan.
Asked on May 31st, 2012 on Bankruptcy - Alabama
More details to this question:
I have continued to pay the federal loan but was told by Sallie Mae the private loan had a zero balance. I found out recently that the debt was transferred to my mother(co-signer). She declared Bankruptcy a month later(hers was chapter 13 i believe) and Sallie Mae agreed to accept $90/Mo on the private loan. The entire 4 years however they have still been charging $168 to the account and have continued to add fees and penalties to the debt all the while telling me i had a zero balance. To make matters worse they having been posting "Delinquency" on my credit report, again, even though i have a zero balance. on a $7500 private loan i now owe over $8000 with fees and penalties. when i asked why i was getting the delinquency when i have a zero balance they could not give me an answer they tried to talk me in circles going back to the debt is still in my name even though they transferred it to the cosigner. when i asked if i could pay the difference they said no its still in bankruptcy.
1 ANSWER
William/J Joanis
Because you were no doubt i default on the student loan, they had the right to look to your mother for payment. Her Chapter 13 plan was confirmed, and it appears to have included a $90/month payment to them. This did not mean they "transferred" the loan or that you were relieved of your payment obligation. Why they were showing a zero balance is a mystery, but the reason the interest and penalties continued is because the $90 did not constitute the amount of the total due each month. Why they said you could not pay it is also a mystery. You have the right to pay any debt you have, even after you are discharged of your obligation to repay the debt in a bankruptcy. In this case, you were not discharged of the obligation, so I cannot understand why they don't pursue you for the full amount, much less tell you that you do not need to pay.
Answered on May 31st, 2012 at 12:53 PM