Student Loan Repayment Problems

What to Do If You're Unemployed

I am trying to unbury myself.

I had allowed a student loan agency to deduct payment from my checking account, but during a long bout of unemployment, they deducted when I asked them not to and I lost my checking account with my bank.

I still have a savings account with the same bank. How can I straighten this mess out. I don't know where to begin.

Lisa

---

You don’t say if you have a Federal Student loan or not or when it was issued. The deferment rules changed in 1993. Since the Federal loans are most common, I will assume that’s what you had.

I just put up some articles today on student loans. The one you should look at is Student Loan Repayment Options.

This gives you advice on steps you can take to defer your loan payments, as long as you’re not in default. The Federal loan program is flexible and provides for deferment of repayment in times of unemployment, as long as you’re actively looking for a job.

If you have a federal loan, go to the SallieMae website. They are the biggest manager of Federal student loans. You can apply for deferments, payment extensions and loan consolidations online.

There is one interesting clause that may help you even if you are in default. It states that “a deferment must be granted if your loan is not in default or, if your loan is in default, the deferment began prior to the default date.” If you were entitled to an automatic deferment that the lender didn’t grant, this clause may help you.

From what I have read, student loan lenders have been very tough in collecting debts. You don’t give me enough facts to know if they overstepped their bounds here.

If you can prove you were entitled to a deferment and the lender knew that, but continued to debit you account, you might want to talk with an attorney. You might have a case against the lender.

I would move the savings account to another bank until you get this straightened out.

  | Top | Questions | Home |