My wife has a charged off student loan in Wells Fargo's own in-house collection department. They've been letting her make payments every month for several years, but now they're getting aggressive and threatening to sue her unless she makes much higher monthly payments or settles the account. I know that we can't claim statute of limitations, since she has been paying them every month, but is there anything we can do to get them off our backs, short of somehow finding enough money to settle? Wells Fargo has no student loan rehabilitation program. BTW, the total amount is around $30k, but they'd settle for $18k. Original account was charged off in 1999.
WOW, if you're getting an offer to settle on a guaranteed student loan, consider yourself fortunate, sell you car, do whatever it takes, but pay the 18k.
It's unlikely that this is a guaranteed student loan with no SOL. In many states, private student loans are treated no differently than any other consumer loan and are subject to a statute of limitations. You will need to do a bit of statute research for your state to consider how the following may apply to your circumstance: Does your state protect private student loans from commerial institutions? It may only protect loans from state schools [ and state funds ]. What is the cause of action that initiates the SOL period? What is required to remove the debt form the SOL period? In some states, simply acknowledging the debt voids the SOL; making payments voids it in other states; and some states require a new written contract. The point here is to understand the laws of your state. If you post your state, someone here may already be familar with the statutes [ although you should always go and check them yourself ]
I meant to add: They may be getting more aggressive because you are approaching or have passed the SOL for this account. I am suspicious that out of statute debts are passed to a different form of collector...
Depending on the type of loan you have, you may be able to consolidate or refinance the loan for a lower interest rate and lower monthly payments. Was there more that one loan/did she borrow for more than one quarter/semester? What type of Student loan is it? Is it a federally subsidized loan? Is it a private loan? What type of school was the loan used for? Trade school, university, etc. You may have more options depending on the loan type. Mor info on the loan will help determine what your options are. 3day
