student loan in hands of collection agency

[elton_brand]

i have a delinquent (private) student loan that has been recently handed over to a collection agency. as they are willing to settle for %50 of the balance (which is still a huge profit for them), i am considering contacting them to make arrangements. the thing is, the statute of limitations has run out on this loan. two questions:

1) if i elect to repay, it will take years and i will do so in small payments. do collection agencies usually apply interest to the remaining balance?

2) if i do not elect to repay and let the statute of limitations expire, can they go after the co-signer on this loan? i dont want that.

please advise.

 

[irish223]

Although your loan was private, it may have been guaranteed. If so, then there is no statute of limitations.

Whoever cosigned your loan will also be held responsible for payment.

You seem to think that you shouldn't have to pay back your loan just because the lending institution will make money from the loan. Why shouldn't they? You signed an agreement, you should be held accountable.