Consumer Law, Warranties sba katrina

[chinesejohn]

"Katrina SBA loan default
We first tried applying for federal emergency grants after Katrina like everyone else was doing but were turned down for having good credit. This good credit was established by our parents for the most part, the two of us were unemployed and full time students in college. After losing everything we really had no choice but to take the loan. The loan was for $39,500 with a 2%interest rate and a duration of 30 years. We have been paying on the loan now for two years. On one instance when we fell short of payment for two months they threatened to hand the policy over to the U.S treasury. There was no collateral agreement in the loan, infact I was told if we did not repay the loan we could go to jail. My question is what would be the most likely outcome if we defaulted on the loan? The way I see it is, it was clearly our responsibility for taking the loan money but a irresponsible decision on the SBA to loan money to two full time students who were unemployed at the time and just happened to have good credit scores. Most hurricane victims got grants, I don't understand."
this was taken from an earlier post.
I have a similar problem as them except my policy must have been turned over since i do not receive tax refunds. Can someone help with an answer?

 

[Michael Wechsler]

I don't understand - why are you considering defaulting on student loads (a bad idea.) If hurricane victims received aid, did you apply? Regardless, one thing has nothing to do with another. If you took out a loan you must repay the loan. The fact that there is no collateral doesn't mean the SBA is at fault in any way and you'll have to deal with the consequences. The understanding with student loans is that students don't have much to "collateralize." The best you can do is to figure out how to take care of paying back your very low rate student loans.

 

[jps2]

I am not considering defaulting on my student loans, they are almost paid off by now. I just want to know why the SBA did not give us a grant like they gave many other people. Was it just because of a good credit score and the chance to make profit on a loan; I mean, come on , we did'nt even have jobs. How can they realistically figure we can pay back $40,000 that will actually turn into $90,000 at terms end. I was paying a consequence for having a good credit score and being unemployed and I don't think that was fair. Luckily, I have a great paying job now and it's not about the money. It's about why we recieved a loan and not a grant under the past circumstances. I feel as if they have taken advantage of me and my wife. What lawyer would specialize in these sort of cases?

 

[jps2]

how did you become a lawyer

 

[Michael Wechsler]

How can they realistically figure we can pay back $40,000 that will actually turn into $90,000 at terms end. I was paying a consequence for having a good credit score and being unemployed and I don't think that was fair. Luckily, I have a great paying job now and it's not about the money. It's about why we recieved a loan and not a grant under the past circumstances. I feel as if they have taken advantage of me and my wife. What lawyer would specialize in these sort of cases?

I don't know the terms but some people consider student loans to be more favorable terms than others.

How do you feel that you have been unfairly taken advantage? I don't know of a specialty in this area because I don't think there is one. Life unfortunately isn't fair and we've all just watched our current governmental administration just gift overextended homeowners free money and the right to keep homes they never should have been qualified for in the first place.

Already one woman is trying what you want to do and I highly doubt she will be successful.

"The Monroe College grad wants the $70,000 she spent on tuition because she hasn't found gainful employment since earning her bachelor's degree in April, according to a suit filed in Bronx Supreme Court on July 24."

Keep in mind that any attorney taking a case like this would consider that you are not alone. Any judge would consider the fact that if they awarded you money, then there will be hundreds of thousands of former students suing as well for money back. I don't know what to tell you and I'm sorry. If you can give me an idea why your situation might be different, perhaps there might be a better claim.