What happens if I defaulted on my student loan and cant pay the new fee? 16 Answers as of September 20, 2011

First, unless you've already been sued which means you were served with a summons and you didn't respond or you responded and lost, then they cannot garnish your wages. So most likely they are just trying to intimidate you. Depending on the type of loan you have and your income you may have the option of asking them to review your loan for an income contingent repayment plan. Unfortunately a student loan will hardly ever be discharged in a bankruptcy. So you must continue to pay it, but if you have other debt that you can get rid of in a bankruptcy, it may free up your money so you have more money to pay this student loan off. Make a free consultation with a bankruptcy attorney so you can analyze your different options. Good luck.

Student loans can be difficult to deal with these days because bankruptcy does not offer the same protection against this type of debt as it does to others. Generally, student loans are not dischargeable in bankruptcy, but there is a small and rigid exception to this. If you choose to pursue that path, I would recommend retaining the advice of an attorney. Otherwise, you may want to put together an income and expense list for your student loan company and make a proposal to them about what you can afford now , followed by any increase in the amount you pay somewhere down the road, and propose it to them. If you are working now, and you have a bank account, etc. they can eventually take collections actions against you, file a lawsuit and garnish your wages, freeze your bank account, etc.. If you are working, you should know that the maximum amount of money they can garnish you for is about 25% of your net income. When you put your proposal together, take this into consideration, and offer them what you can, hopefully slightly above the wage garnishment max, that way they have an incentive to work with you. If 25% of your net wages are much higher than what you were offering them or the $320/ month they wanted, you should consider working with them, and possibly have to re-evaluate your expenses. Good luck.

Don't fall any further behind, keep sending the $100.00 in. Add a little bit each time to get caught up. Seriously, call your congress person. This is becoming a huge problem across the nation.

You have to try and resolve the matter with them. Student loans are non dischargeable in a bankruptcy so you cannot discharge your obligation to them in a bankruptcy case.

Under very strict circumstances dtudent loan debt can be discharged in bankruptcy. This is very difficult and the process goes far beyond just the filing of a bankruptcy. See an experienced attorney in your area about this.

You could file a chapter 13 and ask for a hardship discharge of student loans but it is uphill battle.

I would get someoen who is well versed in working with these people. I know they can modify the loan it just needs to be done in a specific manner.

Student loans are the next financial crisis. As I am sure you know, student loans are non-dischargeable. I am putting a client with massive student loans into a five year Ch 13 plan, but it will only buy her time.

Student loans are the most difficult debt to handle and the options are few. One thing you might consider is to file Chapter 13. It is a bankruptcy that allows you to repay debt based on your budget. Thus, you could pay $100/month towards your student loans in a Chapter 13 plan.

If you are behind payments for your student loan you might consider a chapter 13 payment plan.