Loan was thru PHEAA back in the 90s. She defaulted. I'm being pursued for the debt with threats of garnishment on my work income and Social Security. I did co-sign for the loan. It has been over 7yrs since I heard anything from PHEAA and now I'm hearing from the collection agency.
More information is needed: Is this a federal loan or a private loan. How much is owed on this loan? If this is a federal loan then it does not matter how long they have not contacted you or your daughter and I would suggest contacting a local attorney who can work out some type of payment arrangement.
This is a federal loan most likely. If so, there is no statute of limitations. You would need to rehabilitate the loan to get it out of default, then get into an income driven plan.
If the creditor now pursuing the loan is private, its potential remedies may be extremely limited. There are several statutory exemptions to garnishment for which you may qualify. For instance, if you can properly be considered head of household (ie: you provide more than 50% support for a dependent), your salary is exempt. Additionally, your social security income is exempt (exceptions exist if the creditor is the federal government). Also, if the debt is privately owned, there may be a statute of limitations issue. You have several potential exemptions and defenses to explore and which may be used to avoid liability or in negotiating a favorable settlement.
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