My husband consolidated his student loans about 2yrs ago but missed one, or could not consolidate it or something. Basically, he got a couple of quite nasty letters about a debt he owed for an out of state school he attended.
At that time, we wrote a letter stating that we could not manage to pay off debt in full but wanted to make monthly payments. We also asked for the debt to be reduced to the original amount (my husband is not sure what this amout was).
We got a letter back saying they would not accept anything but the full amount of the debt, so at that point, we ignored it. No letters came. We moved overseas for a couple of years.
We came back to the USA to live and about a month ago, a letter arrived at my husbands sisters address from the same collection agency. It stated that they were going to liquidate the deliquent balance and would now investigate my husbands employment, bank account and property etc.
The debt is $6,000 and we do not have the money to send them. What do we do now?
Should we try to send a letter to the original loan company (the college) asking for a reduced amount or a longer period of monthly repayments?
Do we send a letter to the collectors?
Do we ignore it? we do not want our car taken, or to be sent to court.
Do we borrow the money from somewhere else to pay this debt?
Any advice would be very much appreciated.