Question about Student Loans - Are we caught in a scam?Submitted by pil45 on Tue, 12/28/2010 - 10:47
I awoke to my wife crying this morning. Turns out she was tossing all night,worrying about her student loans.
I will say, I know nothing about student loans as I never took one.
Her original loans were in the form of two large loans, which have now been sliced and diced and sold off to other companies. Yesterday we received a new bill, from a new loan holder, informing us of a new payment on part of a loan that this new lender/bank purchased.
What I was wondering is...Is there a way we can force these loan companies to produce paperwork stating/proving that we agreed to pay them this money? My wife did not knowingly agree to pay anyone but the original loan holder. And we are receiveing so many bills now for payment on pieces of these loans, we can't tell what is legit. 2 loans are now 5 loans.
At this time she has perfect credit. We don't live on credit cards at all, but feel that good credit is definitely not a bad thing to have, so we want to protect it.
I am wondering if this is not the "plan" to dice up large loans and then hit the borrower from all sides until they refinance at a higher interest rate that we can't afford. Are we being played? Can I force these supposed loan holders to provide proof that we do indeed owe them this money? My wife says that a new law from Obama makes it so that you can't get rid of student loans via bankruptcy...so, are we being led to the slaughter? Are we being forced into a position of re-financing so that banks can make more on interest from these loans? It is my (loose)understanding that student loans are not to take up more than 20% of your income. My wife's loans now account for just over 50% of her small $25,000/yr. salary, and this doesn't leave much behind for other necessities...like our 1 year old, or bills and such.
Does anyone know of a way out? We are not trying to shed responsibility for what we owe, but we also don't want to be taken advantage of by confusing rules.