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Thanks for your reply. Her student loan is in collections. ACT currently has her debt and they are trying to take her tax return from her. (maybe she did stop paying and that's why? I will ask her.

Since ACT now holds her loan in collections, does this mean she can't qualify for the IBR or PAYE?

Thank-you for clarifying that bankruptcy won't help!

Hello! I'm currently researching to help a friend with her student loans. I feel somehow she was greatly taken advantage of- how much she's been charged for fees etc.

Her situation:
Years ago she went to an "Executive Secretarial School" in Dallas. She took out loans from the Dept of Education. I can't believe it, but her principal loan balance is $32,752! It seems like a racket considering this is a school to become an office manager, basically. She really doesn't have much financial knowledge and is now paying for it. Needless to say, she met the man of her dreams and didn't finish the program. The school then went out of business and she's stuck w/ this loan. Since she's a single mom, she can barely make ends meet. The loan has been in collections.

Here are the totals:
Principal: 32,752
Interest: 3,416
Fees & Costs: $8,803.37
For a total Balance of $44,971

ACT currently has her debt. She only pays $13/month b/c she only makes $1900/month. I believe they are going to try and garnish her tax return that she desperately needs to get by.

Sadly, she's not in public service, a teacher or anything in the "state forgiveness" area. She works for a title company.
Can anyone give me any ideas? I hate for her to file bankruptcy. It seems like a scam to me that she had to pay so much for this "trade school" but she obviously signed loan documents to get the money.

Thanks for all/any help you can offer!

Shannon

Hello! I'm currently researching to help a friend with her student loans. I feel somehow she was greatly taken advantage of- how much she's been charged for fees etc.

Her situation:
Years ago she went to an "Executive Secretarial School" in Dallas. She took out loans from the Dept of Education. I can't believe it, but her principal loan balance is $32,752! It seems like a racket considering this is a school to become an office manager, basically. She really doesn't have much financial knowledge and is now paying for it. Needless to say, she met the man of her dreams and didn't finish the program. The school then went out of business and she's stuck w/ this loan. Since she's a single mom, she can barely make ends meet. The loan has been in collections.

Here are the totals:
Principal: 32,752
Interest: 3,416
Fees & Costs: $8,803.37
For a total Balance of $44,971

ACT currently has her debt. She only pays $13/month b/c she only makes $1900/month. I believe they are going to try and garnish her tax return that she desperately needs to get by.

Sadly, she's not in public service, a teacher or anything in the "state forgiveness" area. She works for a title company.
Can anyone give me any ideas? I hate for her to file bankruptcy. It seems like a scam to me that she had to pay so much for this "trade school" but she obviously signed loan documents to get the money.

Thanks for all/any help you can offer!

Shannon