Private student loans vs Federal loans after school fraud - Can they take my house in Florida?

Florida homestead protection is very strong. They generally CAN'T take your primary residence in Florida - that's actually one of the strongest homeowner protections in the country. However, they CAN potentially garnish your wages up to 25% of disposable income if they get a judgment against you. If you're getting harassed with excessive calls, document everything and look into filing a complaint with the CFPB. Also worth checking if your school's fraud case might qualify you for private loan discharge through your state AG's office - some states are pushing for this.

YUP i got those same threatening calls after Westwood College got shut down!!! My federal loans were discharged but Navient and SallieMae kept coming after me for the private ones, calling my job and everything!!! its TOTAL BS that the same school fraud doesnt apply to ALL the loans!

I was in a similar situation and had success working with my state attorney general's office. Many states have been investigating predatory lending associated with fraudulent schools. In some cases, they've secured settlements that include private loan discharges. What you should do immediately: 1. Contact your state AG's office and ask about any ongoing investigations into your school 2. File formal complaints with CFPB and FTC about the harassing phone calls 3. Look into the Fair Debt Collection Practices Act - their threats may actually violate federal law 4. Consider sending a cease and desist letter regarding phone communications Also, Florida's wage garnishment laws are more protective than many states. They can't garnish your wages at all if you're the head of household providing more than 50% of support for a dependent. Worth looking into if that applies to you.

The system is completely rigged against borrowers. I've been fighting Sallie Mae for 6 years after attending a for-profit school that lied about job placement rates. They DON'T CARE that the school was fraudulent. Their business model depends on people being trapped in debt forever. Try to get through to FAFSA and ask about any new forgiveness programs - sometimes state-specific options exist that aren't well advertised. Good luck getting through though - I spent WEEKS trying to reach someone.

my cousins freind had same problem after ITT Tech and he just stopped answering calls and changed his phone numbr. its been like 3 yrs and nothing happend to him but idk if thats good advice lol

I worked in financial aid counseling for 6 years, and I've seen this exact situation repeatedly with for-profit school loans. Here's what you need to know: 1. Private student loans and federal loans are governed by COMPLETELY different rules 2. The Florida homestead exemption is extremely strong, but you must ensure your property is properly designated as homestead 3. Wage garnishment in Florida requires a court judgment first, and they must follow specific legal procedures You should look into whether your loans might qualify for "Unfair and Deceptive Acts and Practices" (UDAP) claims under your state's consumer protection laws. Several state AGs have sued private lenders over loans associated with fraudulent schools and secured settlements. Also, request complete validation of the debt to confirm they actually own the loans and have proper documentation. Many private loans have been sold multiple times with incomplete paperwork.

Call their bluff!!! I had $42k in private loans from a scam art school, told them I could only pay $100/month, they threatened me for YEARS but never actually did anything. They don't want to spend the money on litigation unless they know you have substantial assets they can go after.

Update on private loan fraud cases: Several states (CA, MA, NY, IL, PA) have reached settlements with private lenders over loans connected to fraudulent schools. These settlements included loan forgiveness for many borrowers. Florida hasn't been as aggressive in this area, but you should definitely contact your state AG about whether your school is under investigation. Also - Florida has the Consumer Collection Practices Act which gives you additional protections beyond federal law. If they're calling repeatedly or making threats, document everything and report them.

Has ne1 tried those debt settlement companies?? My cousin used one for his private school loans and they got it reduced by 40% but im not sure if they work for everyone or if its a scam