A nurse was sued by her student-loan company. After losing a chunk of her paycheck, here's how it turned out.

Hannah Bates has represented herself for nearly two years in a lawsuit filed against her by her student-loan lender.

Nic Antaya, Alyssa Powell/BI It's been over a year since Hannah Bates, 31, was sued by her private student-loan lender — a legal battle she called lengthy, expensive, and confusing.

It started in October 2024, when Sallie Mae notified her that she'd made the final payment on her outstanding balance of $55,000.

Bates knew that was a mistake.

In fact, she was falling behind on her $1,500 monthly payments and had years' worth left.

When she tried to clarify with Sallie Mae, she said she received conflicting information on how to avoid default.

Six months later, Sallie Mae sued her to collect.

When she's not working her 12-hour nursing shifts, Bates has represented herself in the lawsuit, with the help of ChatGPT.

She said it's taken a significant emotional and financial toll, and after multiple unsuccessful attempts to reach a payment agreement, the court ordered that her wages be garnished.

She lost $884 from her roughly $2,700 paycheck for two pay cycles, prompting her to pick up extra shifts at her hospital.

"It's the weight of the world," Bates said.

"Some days are better than others, but I didn't think I'd be here." More student-loan borrowers could soon find themselves in Bates' situation.

Private student loans comprised only 10% of the $1.85 trillion student-loan market in 2025, according to Consumer Financial Protection Bureau Data.

But President Donald Trump's repayment overhaul , which took effect July 1, is expected to drive more borrowers to private lenders like Sallie Mae, which lack substantial federal oversight .