HI, I am in default on a private student loan. It was sent to a collection attorney and they said they would accept $100 dollars a month. They told me that it did not go as far as it could have gone and that they wont sue if I make the 100 a month payment. My dad is a co signer on this loan. I thought the loan was deferred but that turned out not to be the case. My question is if they say they wont sue me if I pay do you think they will? This has now turned into a 20k loan due to 5k collection fees they added on. I just dont believe they are actually planning on accepting that much. I told them I will pay more when I become an RN in about a year. Please help me out with this.
Yes they could still sue you if you pay, but your defense would be that an oral agreement existed to modify the payment terms of the note you signed with them. Remember that since your father is a co-signer, they will come after him if you do not pay.
You have two options: pay the $100 per month or try and negotiate a lump sum payment for something less than the full amount they claim is owed. I recommend the latter option if at all possible. Good Luck.