new q's on private sallie mae loan in default

[NJD123]

What is the name of your state? PA

I posted last night but after trying to sort out some more research I have some other questions:

1) Is a private student loan really protected in bankruptsy like a federal one? Even other posts on this forum don't make this clear. It seemed to be based on whether Sallie Mae is related to a non-profit in any way but I can't find out where those ties would be mentioned on their website.

2) Why was I getting invoices from Sallie Mae last month for a loan that has been in default for YEARS if they sold my private loans to a creditor? Still have no paperwork from the actual creditor.

3) They have told me that they need at LEAST 1,300/month which is half our monthly income for 5 people. Should I send them SOMETHING (we could do maybe 100/month now and more once the federal loans are re-habbed) to keep them from coming after me more strongly while I work on increasing my income and ability to pay? This wouldn't even dent the interest each month though Would it matter to them that I'm making the effort?

4) I guess I just need to know what the difference between the private loans I took out and the federal ones and whether there is really ANY way to start fixing this. The creditor says there isn't, but each person at that company seemed to tell me different things. Will the interest just ramp up indefinately unless I pay off the whole balance at once?What is the name of your state?

 

[cvdesign]

1. No. You cannot cancel/discharge a private student loan via bankruptcy.

2. Don't know. But bear in mind that SM lends AND services student loans.
Go to http://www.nslds.ed.gov/nslds_SA/ , register, and you can look up all details concerning private AND Federal student loans.

3. Yes. And no. It depends on who you deal with.

FTR, rehabbing a loan usually means (at least according to the DoE) paying at least $50/month for approx 6 months ... meanwhile DoE will assist you in finding a new lender to take over your loan. Once the new lender picks up, the cost per month will go up as well, as you enter into an agreement.

4. Private loans are for those that either maxxed out their Federal loans or (for whatever reason) couldn't get a Federal loan. Private loans also default after fewer days of no payment (120 for private vs 270 for Federal) and usually involve higher interest rates and fees (when it's all figured up in the end).

 

[NJD123]

Thanks for the info so far....I just went to the site and logged in and it has all my federal loans listed but the two private ones from Sallie Mae are not. A great deal of info seemed specific only to the federal loans.

What does it mean to be a servicer of student loans rather than just a provider? I had my federal loans from them as well as my private ones and the federal ones I'm already taking care of. The creditor that now has my Sallie Mae PRIVATE student loans said there is no "re-habbing" a private loan...it will just keep growing and growing and growing.