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Old 05-22-2014, 05:38 PM
 
9 posts, read 19,411 times
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Hello everyone,

I'm concerned about a friend who appears to be taking drastic measures to avoid paying back private loans from Sallie Mae. He has been unemployed since he finished graduate school in 2012. He's moved to another state to keep Sallie Mae confused. He found a job in SE Asia in his field and will be leaving in a few weeks, and he plans to stay there until the statue of limitations runs out.

Questions:

Is it true that the SOL applies to private student loans? These are not Federal loans administered by Sallie Mae.

If he can't be located to be served papers, it would seem that Sallie Mae would be unable to sue him, and therefore be unable to secure default judgement against him. Is this correct?

Do you think this is a pretty good gamble he is taking?
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Old 05-22-2014, 05:51 PM
 
Location: N/A
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Quote:
Originally Posted by bigfatillusion View Post
Hello everyone,

I'm concerned about a friend who appears to be taking drastic measures to avoid paying back private loans from Sallie Mae. He has been unemployed since he finished graduate school in 2012. He's moved to another state to keep Sallie Mae confused. He found a job in SE Asia in his field and will be leaving in a few weeks, and he plans to stay there until the statue of limitations runs out.

Questions:

Is it true that the SOL applies to private student loans? These are not Federal loans administered by Sallie Mae.

If he can't be located to be served papers, it would seem that Sallie Mae would be unable to sue him, and therefore be unable to secure default judgement against him. Is this correct?

Do you think this is a pretty good gamble he is taking?
he should pay what he owes or fry.

If the lender sues and gets a judgment, the lender is also given a specific period of time to enforce the judgment, but in most states, they can keep renewing the judgment which basically gives them an unlimited amount of time. <-----------so NO SOL!!! or...you could say your "FRIEND" is SOL!
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Old 05-22-2014, 06:02 PM
 
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I'm sure he would if there were jobs with a living wage, midwestlaxer. But he is unemployed and there isn't any possibility to pay off the loans, hence the whole moving out of the country part.
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Old 05-22-2014, 06:04 PM
 
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But now he has a job in SE Asia, so he can start paying on his loans.
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Old 05-22-2014, 06:09 PM
 
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No, the pay just allows him to live modestly by that countries standards. He'd be unable to even come up with 1/3 of the minimum payment required by Sallie Mae.

If nobody is answering the questions, why bother? Not looking for morality responses here.
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Old 05-22-2014, 06:15 PM
 
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Quote:
Originally Posted by bigfatillusion View Post
No, the pay just allows him to live modestly by that countries standards. He'd be unable to even come up with 1/3 of the minimum payment required by Sallie Mae.

If nobody is answering the questions, why bother? Not looking for morality responses here.
I gave you the answer...the answer is...he will get sued, a judgement will be administered, and it will exempt this debt from the Statute Of Limitations.

Sorry this is not the answer you are looking for...but, it's what is going to happen. He owes the $140k...and it is possible that even bankruptcy won't discharge it.

Hindsight is always 20/20...sucks don't it?
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Old 05-22-2014, 06:15 PM
 
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Can't he contact the lender & work out a lower monthly payment plan? A payment plan that he can afford.
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Old 05-22-2014, 06:29 PM
 
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Quote:
Originally Posted by midwestlaxer View Post
I gave you the answer...the answer is...he will get sued, a judgement will be administered, and it will exempt this debt from the Statute Of Limitations.
I've heard that if a creditor can't locate you then it is isn't probable they can get a judgement. This is because people actually need to be served papers to know they're being sued. But if they can't find him, how can they get him those papers?

Quote:
Originally Posted by midwestlaxer View Post
Hindsight is always 20/20...sucks don't it?
Sure does, I feel bad for him. From the cradle everybody was pushed to "make a better life" by going to college. Just goes to show that doing the right thing doesn't always benefit you, and in some circumstances such as this one, actually makes your life a lot worse!


Quote:
Originally Posted by daliowa View Post
Can't he contact the lender & work out a lower monthly payment plan? A payment plan that he can afford.
Yes, Sallie Mae has been 100% stubborn throughout the years to help setup such a plan.
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Old 05-22-2014, 06:32 PM
 
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He can stay in SE Asia for the rest of his life and it's unlikely they'll come after him.
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Old 05-22-2014, 07:27 PM
 
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Quote:
Originally Posted by nybbler View Post
He can stay in SE Asia for the rest of his life and it's unlikely they'll come after him.
That is a possibility but I know that would be difficult for him to accept. That said, if the U.S. doesn't provide middle class jobs for college graduates, what else can be done?
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