I'm stressing out and my wife is in tears over my private student loan. I don't know where else to turn. Please help

[linuxguy1010]

What is the name of your state?Utah

My wife is in tears because she is the co-signer for my private student loan from ITT Tech. It's from 2007. I didn't know the Statute of Limitations and mistakenly made a payment to Navient 2 1/2 years ago. Restarting the statute of limitations. It has been through a few debt collectors but always in my name. On December 15, 2018 my wife received a debt collector letter only in her name. It's from a debt collector law firm. They offered her a settlement.
Now my wife is freaking out and doesn't want to get served and get sued. I'm the only one working and supporting my wife and two kids.

Debt settlement would leave us not able to save.

The weird thing about this specific private student loan. It's not in my credit report and it's not in my wife's credit report either. We recently checked just yesterday.

All of these credit repair companies have not been able to remove all the Navient accounts from our credit reports. It's frustrating and very stressful.

We don't know where else to turn to. We don't have the funds to hire an attorney unless the attorney is on a contingency basis.

What should my wife and I do? Should we be worried? By the way this debt collector is the 3rd or 4th debt collector that has bought it from Navient.

Thanks for any good feedback.

 

[LdiJ]

What is the name of your state?Utah

My wife is in tears because she is the co-signer for my private student loan from ITT Tech. It's from 2007. I didn't know the Statute of Limitations and mistakenly made a payment to Navient 2 1/2 years ago. Restarting the statute of limitations. It has been through a few debt collectors but always in my name. On December 15, 2018 my wife received a debt collector letter only in her name. It's from a debt collector law firm. They offered her a settlement.
Now my wife is freaking out and doesn't want to get served and get sued. I'm the only one working and supporting my wife and two kids.

Debt settlement would leave us not able to save.

The weird thing about this specific private student loan. It's not in my credit report and it's not in my wife's credit report either. We recently checked just yesterday.

All of these credit repair companies have not been able to remove all the Navient accounts from our credit reports. It's frustrating and very stressful.

We don't know where else to turn to. We don't have the funds to hire an attorney unless the attorney is on a contingency basis.

What should my wife and I do? Should we be worried? By the way this debt collector is the 3rd or 4th debt collector that has bought it from Navient.

Thanks for any good feedback.

If its not showing up on your respective credit reports, you probably want to insist that the collection agency validate the debt.

 

[HighwayMan]

You know you have an outstanding loan debt - you just decided you were going to blow it off and hope for the best?

 

[commentator]

Okay, you've got some misconceptions here. First of all, you say you "can't pay it off because we wouldn't be able to save." Well, guess what? If one owes money, and is in danger of being garnished or collected upon, sometimes you can't save. This may be that emergency that your "emergency fund" is in place for. That you have this outstanding debt may postpone your ability to get a better lifestyle, but then if it is a legitimate debt, it must be considered.

Also, an attorney is not going to take your case on a "contingency basis" unless you have some sort of potential to receive money in a settlement, not to help you pay off money you owe to some creditor. If they set you up a repayment plan, you can bet their fee is coming out of that right off the top. But an attorney can deal with things that you yourself have no experience with. You wouldn't object to hiring a doctor to fix your broken bone, why assume you cannot afford advice on something that is not your field of expertise in this way?

The one thing you can do, before you panic and your wife is in tears, etc. is to specifically ask the collection agency to validate the debt, as in send you concrete proof that you owe this. They are required by law to do this and are if they are legitimately going to be able to collect, usually willing to do it. If it's a bunch of scammy collectors trying to scare you into doing something rash, they may not be able to do it.

But frankly, if they do, I'd suggest you seek legal assistance somewhere, because you seem to be a little uninformed here. It is good you're trying to figure this out rather than ignoring it any further. Sounds like it was in some sort of debt holding limbo, and you tried to make a payment on it, and they found you again. Don't be amazed about them contacting your wife. I saw a situation where contact was attempted with a person's grandmother about a defunct student loan, three or four years after she'd passed away. Talk about upsetting! It's meant to be.

Talk to legal services in your area about some free counsel. Call some attorneys who work with student loan debt, and there are some who specifically offer this, and get some cost estimates of how much they'd charge. Some can be quite helpful about what they can and cannot do for you, without charging you for that first consultation. But first, do ask for that verification, in writing, of how much you owe from the collection agency.

 

[quincy]

What is the name of your state?Utah

My wife is in tears because she is the co-signer for my private student loan from ITT Tech. It's from 2007. I didn't know the Statute of Limitations and mistakenly made a payment to Navient 2 1/2 years ago. Restarting the statute of limitations. It has been through a few debt collectors but always in my name. On December 15, 2018 my wife received a debt collector letter only in her name. It's from a debt collector law firm. They offered her a settlement.
Now my wife is freaking out and doesn't want to get served and get sued. I'm the only one working and supporting my wife and two kids.

Debt settlement would leave us not able to save.

The weird thing about this specific private student loan. It's not in my credit report and it's not in my wife's credit report either. We recently checked just yesterday.

All of these credit repair companies have not been able to remove all the Navient accounts from our credit reports. It's frustrating and very stressful.

We don't know where else to turn to. We don't have the funds to hire an attorney unless the attorney is on a contingency basis.

What should my wife and I do? Should we be worried? By the way this debt collector is the 3rd or 4th debt collector that has bought it from Navient.

Thanks for any good feedback.

You and your wife should take the collection letter to an attorney in your area for a personal review. I definitely would not pay this debt without this review. There is a good chance the debt can be eliminated.

ITT Tech has for years been the subject of numerous lawsuits. Below is a news article on student ITT loan debts. The ITT Tech lawsuits have been covered recently by the Salt Lake Tribune as well.
https://www.insidehighered.com/quicktakes/2018/11/29/court-eliminates-debt-former-itt-tech-students

And here is a link that provides background on ITT Tech and the lawsuits:
https://predatorystudentlending.org/press-releases/students-secure-500-million-itt-student-debt-relief/?platform=hootsuite

Good luck.

 

[adjusterjack]

My wife is in tears because she is the co-signer for my private student loan from ITT Tech.

How much do you owe?

They offered her a settlement.

How much is the offer.

Debt settlement would leave us not able to save.

Implying that you do have money for the settlement or, at least, a counteroffer?

Now my wife is freaking out and doesn't want to get served and get sued

Well, one option is to ignore it for another 3 1/2 years until the current SOL runs out and hope you don't get sued for it. Another option is bankruptcy and the debt goes away along with any other delinquent debts you might have.

By the way, validation isn't what everybody likes to think it is. It's only a gimmick that delays the inevitable when one actually owes the money. See section 809 of the FDCPA:

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text#809

 

[quincy]

I do not see that paying any settlement amount or filing for bankruptcy is the best way to handle an ITT Tech student loan.

 

[adjusterjack]

Neither are "best" ways, but they are options. Up to the OP to figure out what's "best" for him and his wife.

 

[quincy]

Neither are "best" ways, but they are options. Up to the OP to figure out what's "best" for him and his wife.

Sure.