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.