QUESTION
What will happen if I can not pay my private student loans?
Asked on Aug 04th, 2011 on Consumer Law - California
More details to this question:
I just graduated two months ago and my private loan was sold to Wells Fargo. I owe $35,000 on my loan and they want me to pay $600 a month. I asked for a forbearance but they said they can only give me 4 months of forbearance after I pay the initial amount. The reason I want forbearance is because I was laid off from my job. I have no income. My mom and dad are also cosigners to this loan and they can''t pay either, we lost our house and they went bankrupt last November. I want to pay for this loan but I need some time to find a job and a reasonable payment method. I don''t know what to do, What would happen if I don''t pay? not that I don''t want too, its just I don''t have the means. Is there anything I can do?
1 ANSWER
Mortgage Banking Law Attorney serving Peachtree Corners, GA
at
Franzén and Salzano, P.C.
Update Your Profile
It sounds you already did the right thing by asking for a forbearance. I'm not sure if you discussed a modification, but that is another option. If you do not pay, then they can sue you, obtain a judgment and attempt to collect it. As I often say on this site, "You can't get blood from a turnip!" Thus, even if they sue you and your parents, and if they win a judgment (which is likely), they still need to collect it. They could do so by attaching the judgment to any property you and your parents now own or own in the future. They could also garnish wages and bank accounts to recover. I suggest that you find any kind of job to make ends meet and continue to work with Wells Fargo to see if you can get a modification to make a more manageable payment even though it will mean you pay more interest at the end of the day. Best of luck in working this out.
Answered on Aug 09th, 2011 at 10:48 AM