Dealing with Debt

questions & answers

Question: I have a student loan from 1979, (GSL/private type student loan), that I had to stop making payments on. The loan was sold and collections activity has resumed from Navient. The contract states that the loan is cancelled upon death or disability. Can Navient sue me for repayment -take my car etc? Thank you.

Answer: Navient, as with other debt collectors, can file a lawsuit for a ”money judgment” from the court. If Navient wins, they can garnish your wages but your car cannot be repossessed (available only on a car loan because the car is often used as collateral/security for the loan.) If your loans are truly privately issued (confirm by looking at the promissory note you signed, or on the www.nslds.ed.gov website), then Navient is subject to the FDCPA Fair Debt Collections Practices Act (but not if Navient is collecting on behalf of the government.) The FDCPA is designed to stop abusive, deceptive and unfair debt collection practices. See additional information on this website, especially the detailed article at http://azlawhelp.org/articles_info.cfm?mc=4&sc=29&articleid=59.

QUESTIONS

  • I have a student loan from 1979, (GSL/private type student loan), that I had to stop making payments on. The loan was sold and collections activity has resumed from Navient. The contract states that the loan is cancelled upon death or disability. Can Navient sue me for repayment -take my car etc? Thank you.

STORIES

  • He told me that I could actually get all the money I needed by using my home as collateral. . .
  • I just helped my mother, age 89, deal with her Medicare HMO. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .

LegalLEARN

YOUR FEEDBACK IS NEEDED

  • Welcome to our Newly Redesigned Website! Let us know how we are doing! Please take a couple of minutes to fill out our survey.

FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS