<prompt> Human: Hello PF, long-time lurker, first Reddit post ever. In 2008 I applied for a private student loan with My Rich Uncle MRU Holdings. After graduation the economy tanked, couldnt find a job for a year, and filed for Ch. 7 bankruptcy in 2010 life happened. My bankruptcy was discharged in 2011 school loans not included and finally found a job, but couldnt afford the loan payment after a few months. In 2012 I applied for a reduced payment plan, which required a renewal every six months. For 5 years I made the reduced payment, but never paid attention to the fine print. Since then, MRU Holdings filed for bankruptcy and the loan is now owned by Younomics, but serviced by University Accounting Service UAS.nbsp;Now, I have a good career, making good money, and can afford the regular student loan payment 800m. When I didnt renew the reduced payment, I finally noticed the balance increased by 25k. Reading the fine print, the payments made over the past 5 years did not apply to the balance of the loan at all. The reduced payments simply kept the loan status as paying as agreed and Younomics would not report it as defaulted. I dont know if payments went to interest or principal and should of paid closer to attention to this loan. I havent contacted Younomics yet as I want to be well-informed on how I can approach this.Hello, enter text here to see what your reddit post will look like.nbsp;Below youll find my loan information, an email from 2014 that states reduced payments will not go towards loan, payment language from the MPN.nbsp;Lending Institution: Younomics formally My Rich Unclenbsp;Loan Disbursement: 8152008nbsp;Current Balance: 80,212,55nbsp;Original Loan Balance: 44,000nbsp;BreakdownCurrent Principal: 40,700nbsp;Current Fees Interest Bearing: 25,257.80nbsp;Current Interest: 14,254,75nbsp;Current Interest Rate: 11nbsp;Monthly Reduced Payment Email 2014nbsp;This email confirms your request to temporarily reduce your monthly loan payments to 304.25 effective 02042014 through to 08042014. Your lowered payment amount will go into effect once your loan status has been changed. Please note that until your loan status is changed, you are still responsible for your normal monthly payment amount, and no payments you make will be applied towards your payment agreement.Payment Plan Language from MPNnbsp;Repayment Plan III: Following the Deferral Period, you must make monthly payments of Principal and Interest each month, with a minimum payment each month of at least 50.00, beginning on the due date determined by us, which shall continue for a period of twenty 20 years, or until you have paid all that you owe, whichever comes first. The beginning due date shall be not less than thirty 30 nor more than sixty 60 days following the end of the Deferral Period. If you qualified for and obtained a loan under our medical school or dental school loan program, your period of repayment of Principal and Interest shall continue for a period of twenty-five 25 years, or until you have paid all that you owe, whichever comes first.nbsp;So, my questions are as follows: - Since MRU filed for bankruptcy in 2009 and assuming Younomics bought the loan for pennies on the dollar, would they consider discharging it at a reduced balance? - Is this legal loan practice? Reading the Master Promissory Note from MRU, I dont see any language on reduced payments not applying to loan. - Should I request debt verification or MPN to see if Younomics still has it? - If they dont help me out - whats the process of defaulting on the loan? Would they come after me or garnish wages if I stop paying? nbsp;Any advice will be greatly appreciated, so I can formulate a plan of attack.nbsp;Thanks!  <response>: I dont know if payments went to interest or principalInterest. And you were still accruing interest because you werent even paying enough to cover the monthly interest generated by the loan.Since MRU filed for bankruptcy in 2009 and assuming Younomics bought the loan for pennies on the dollar, would they consider discharging it at a reduced balance?How do you know the debt was acquired for pennies on the dollar? And what incentive do they have to settle when they hold paper on you thats not dischargeable by bankruptcy?Is this legal loan practice? Reading the Master Promissory Note from MRU, I dont see any language on reduced payments not applying to loan.The payments did apply to the loan.Should I request debt verification or MPN to see if Younomics still has it?If that makes you feel better. But they have it. They paid handsomely for it because student loan debt is valuable paper.If they dont help me out - whats the process of defaulting on the loan? Would they come after me or garnish wages if I stop paying?They will sue you, win, receive a judgement and come after any and all assets they are legally entitled to seize to satisfy the debt. This includes property and bank accounts. If that doesnt satisfy the debt they will also garnish your wages to the maximum extent they are allowed. 