I heard on the radio today... and I'm wondering if anyone else has heard of this ad. I believe the name of the company advertising is Student Loan Debt Relief.(?) The ad claims this company can cut your monthly payments in half, stop harasing collection calls and stop wage garnishments. Things may have changed in 2 years but during my BK I couldn't include my nephew's student loan that I had co-signed on which I had understood before I filed. Also a friend had his wages garnished in 1992 by the Dept of Justice over a government student loan he defaulted on in 1974! From that time on he also had his income tax refunds taken until the loan was paid off. Has all this changed? Can a person now settle on a defaulted student loan? I've heard recently where companies can negotiate a settlement for income tax owed to the IRS over a certain amount but not on any government backed student loans. Is this possible now?
Hi mijd - It's much harder to settle your federal student loan than your private loan, and it's almost never for less than the principle amount. Even if you're bankrupt, it's next to impossible to discharge/settle your government-backed student loan. Does anyone else have some info/personal experience on this subject?
