CanI sue ifI completed my9 consecutive payments for my student loan rehabilitation programbut my loan did not come out of default?
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CanI sue ifI completed my9 consecutive payments for my student loan rehabilitation programbut my loan did not come out of default?
The US Department of Education says they’re having a computer problem. I still have to continue making the payments even though I held up my end of the agreement that I had with them and the collection agency.
Asked on January 2, 2012 under Bankruptcy Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you have an agreement with the United States Department of Education where if you made nine (9) consecutive payment on your student loan rehabilitation program where if you complete the terms your loan would come out of default but to date, it has not despite you honoring the terms of your agreement.
The cause of action would be for breach of contract and an injunctive order. However, before taking the time and expense to file the lawsuit that you can, I suggest that you continue writing the United States Department of Education and the third party collection agency on a weekly basis about you having met your terms of the agreement and you want reciprocity. Keep a copy of all letters for future use.
Hopefully the computer problem gets resolved soon for you.
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