A lot of people are calling wanting me to switch my student loans to them. If I switch the student loan to a company that is trying to get me to switch and I would defualt if I failed to make payment, would it be possible to get that taken off my account. I dont think I can if it is therough the federal gov like that, but what about another company. Would I be able to file bakrupcty and have the debt wiped if I switched companies. I owe a lot on student loans. Thanks TJ
You can never bankrupt student loans unless you have a documented "hardship". The documentation for this in bk is quite extensive and very rarely given. The federal government enacted the student loan laws back in the 70s because people with large loans such as doctors and lawyers would file bk to get rid of their loans. So the feds closed the loophole. If you have defaulted student loans and they're in the hands of a CA already you will have to deal with them unfortunately. CAs love buying student loans because they know that you will eventually have to pay up as there is no SOL on them. So even when they drop off your credit report after 7 years the CA can take the debt and go right to judgment which is impossible to get off unless you pay the judgement. You might be able to "rehab" the loan through the CA but they will charge you an exorbitant one time "commission" fee and then push for the highest monthly payment they can get. It is a vicious cycle but the sooner you attack it the better off you will be. Unlike the original creditor and the State guarantee agencies the CAs are much nastier. So be prepared. BTW it is better to rehab the loans first if you haven't already done so than to consolidate them. If you rehab them and make 12 timely payments the negs on your CR can be deleted much easier. If you consolidate (which is why you're getting all the calls) a new company buys the loans...but the negs on your credit report will stay and they are much harder to get off. So think hard and do your homework before you consolidate. HTH
