I need help with this problem

[raudenk]

Hi,

I was wondering if you know the statue of limitations on a student loan in Florida. I borrowed 26,750.00 in 1991. Due to several reasons, I was unable to repay the loan and the loan went in default and was placed with Payco collection company. They demanded that I pay them 40,000 immediately--or they were going to charge a fee of 10,000 onto this loan.I did not have the money ---so they added on this amount making it $50,000.
I have the original promissory note and the loans were disbursed from a private bank in amounts of 15,000, 4,000,4,000 and 3,750 totalling 26,750 from Barnett and Crestar Bank.

Because I was at a lost of what to do, I consolidated this loan with Direct loans for 57,000. It is now 2008, with a collection agency contracted by the Department of Education called Collecto. They say it is $80,000.00 and want to add more collection costs making it 107,000

I was wondering about the statue of limitations on this? I cannot afford to pay this. I am a teacher in a public school.I work with low income students.
Also, I have considered bankrupty because the amount they want me to repay would cause undue financial hardship on my family.
Can you offer any solutions?

Thanks.



K. Raudenbush
raudenk@palmbeach.k12.fl.us

[ChrisRocks]

Unfortunately, student loans are not dischargeable in bankruptcy unless you can show that your loan payment imposes an "undue hardship" on you, your family, and your dependents. The qualifications for an "undue hardship", from what I understand, are not easy to meet. Your best bet would be to meet with a bankruptcy attorney to discuss your options.

Have you discussed a repayment plan that is more affordable with Collectco or the Department of Education? Given the hard economic times many are facing, collection agencies and creditors appear to be more open to working with consumers. While you may not get anywhere, it's certainly worth a few phone calls...

The only 2 other options to eliminating debt, outside of simply repaying the debt, would be consumer credit counseling and debt settlement. In the case of student loans - neither option would be available to you.

-Chris