Being under employed and unable to make full payments to Sallie Mae monthly, I have been religiously making monthly payments of 150.00 in good faith for a few years now. Sallie Mae has ignored requests to show where these payments are being applied (as well as their third party debt collectors), been verbally abusive on the phone when I've told them I can't afford to make larger payments, sent me form letters saying I'm 30 days past due, 60 days past due, in default, etc.. Yet, now I am being sued. I'm confused. By accepting and cashing these payments aren't they agreeing to the terms in which I can repay the loan at the time being? It's clear I'm not paying the amount they want, but with living expenses, I can't pay more. What can I do, now that I've received this summons? They want me to "work" with them, but they don't want to "work" with me in my financial position. I'm still paying in good faith and have no assets. What more can they get or what more do they expect to get if I can't sustain myself?

I'm confused. By accepting and cashing these payments aren't they agreeing to the terms in which I can repay the loan at the time being? Hello z:

You are confused..

No, they AREN'T agreeing to NEW terms... The OLD terms STILL apply. That's why you're being sued, and if you don't get caught up, you'll lose your home.

excon

Well, since I have no assets it might be hard to take my home from me. I should've known I need to speak with someone who is really informed. Lame answer, lame webstie

Hello again, z:

You're STILL confused. I'm trying to HELP you. Don't you OWN your home? Aren't they suing you for the payments? If you don't pay, even if you own NO other assets, they'll take your home...

excon

well, since I have no assets it might be hard to take my home from me. I should've known I need to speak with someone who is really informed. lame answer, lame webstie

Actually, this answer is dead on accurate.

If you had an agreement to pay back a loan, make monthly payments, you can't just decide to change those payments because of your financial hardships. You can ask them to work with you, but they don't have to, and it seems that they aren't. They never agreed to new terms, that's why you've gotten phone calls, late notices, etc. etc. and it's why you're now being sued.

You say that you should have spoken to someone who is really informed. You did. Excon knows the law, and he gave you valid legal advice. I know it's not what you want to hear, but that doesn't change the facts. If you want to be lied to, then find a website that will do that for you. Here we tell you the truth, even if it's not what you want to hear.

... I'm confused. ...

Apparently so.


... By accepting and cashing these payments aren't they agreeing to the terms in which I can repay the loan at the time being? ...

No.

They are not agreeing to anything.

Warning issued for being rude to people trying to help you.

You are confused and wrong, If you want people to tell you just what you want to hear, go to some of the other question sites that don't care about quality of answers.

The idea of paying 10 dollars or 100 dollars and if they accept it, is just a fairy tale, who ever told you that, or where you heard it, just are wrong. The legal written contract is all that matters, nothing verbal or you being in default does not change that.

In fact they have been nice to you all these months, what would you do if your boss at work did not pay you the full amount of your check each week, just do nothing or would you call them, ask them, call the department of labor.
You were not paying your amount and they could have done something long ago.

We assume this is a home home, so yes they will sue you and take the home from you

And, what they can legally garnish from you has nothing to do with what you can actually afford. There is a formula, and it doesn't really matter where that formula leaves you. I am also assuming that since this is Sallie Mae, that this is actually a student loan. If it is, you pretty much have an iceberg's chance in hell of getting out from under it or getting them to reduce the amount. Student loan debt does not go away. Of course, your tax refund may disappear, along with garnishing your wages, and levying your bank account. They have NO incentive to work with you, the full amount of the loan is guaranteed by the federal government, and SOL rules that generally apply to debt do not apply to student loans.