Legal Question in Credit and Debt Law in Michigan

I just graduated from a private college and have 90,000 in private student loans, 6.8% interest rate, and make 45,000 a year. I haven't started repayment yet. Can I sue to lower the interest rate or lessen the loan? 33% of my monthly income will go to repaying private loans.

From Financially Afraid

Asked on 7/24/15, 7:20 am

1 Answer from Attorneys

Andrew Campbell Andrew L Attorney at Law

I would need more facts to determine if you could sue. It is difficult to deal with private student loans. Federal loans can be dealt with through various programs to lower your payment but private ones cannot. Repayment starts very quickly with private loans. If you don't pay they will eventually sue you and obtain a judgment. You can sue if you didn't sign the note or if there was some kind of fraud. I am not sure if this can help or not but one thing I would do is get the cost of attendance for that school you attended. This can be found in the magazines that report on school rankings. If you borrowed more than the cost of attendance that might be a defense. It is a fairly new theory that has not really been tested out but it might only work with regard to federal, not private loans. Again, this is just an idea to think about, it does not mean it would necessarily always fly in a court of law.

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Answered on 7/24/15, 7:44 am

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