I have student loans I have been paying what I can but not the full amount as I can't afford it. I have tried to reason with Salliemae many time and asking for help.
They arent do anything other than asking for more. Now I have collection agency calling me and I get letters saying they can garnish my pay, withhold my income tax.ect. What can I do.
3 Answers from Attorneys
For the most part student loans are akin to taxes: till death do us part (then again, not everyone pays taxes). Thus, one must pay or die in the game of student loans. While one cannot discharge student loans in bankruptcy [at least in the present state of bankruptcy law, student loans are not dischargeable (forgiven) absent cause for hardship-- "hardship" being an illusory term of art, which does not mean (merely) hardship; rather, it may mainly mean that the bankruptcy debtor is "dead" (or only) "mostly dead" (which is a Princess-Bride-ian term of art). Chapter 13 bankruptcy won't discharge student loan debt (except for that unusual curious case of "hardship"), however, one can reduce payment obligations for the duration of the chapter 13 plan (generally b/w 3- to 5-yrs, however, multiple cases may be filed). Alas, interest will continue to accrue during the pendency of the chapter 13 bankruptcy, but at least one's monthly obligation may be temporarily ameliorated (until such point that the educational institution's high-income-employment promises come to fruition, for surely they will). While federal bankruptcy law favors federal student-loan and private-student-loan creditors, bankruptcy still provides powerful federal court protection from usury and debilitating debt imposed by creditors and the companies that command one not to “leave home without [their card].” Notwithstanding the shortcomings of student loan treatment, one mustn’t forget that debt in general isn’t till death do us part. Nothing’s without qualification, but for the most part, bankruptcy’s like rock to debt’s scissors: it beats debt.
You should look into bankruptcy. I agree with the above lawyer.
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another option would be to hire an attorney to try and negotiate a reasonable payment plan