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Collections of a Student loan, OH hey and Im new !!!

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M&M
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Subject: Collections of a Student loan, OH hey and Im new !!!
 
 Posted on Tue Aug 14, 2007 9:33 pm  
Ok here goes first Im new and look forward to meting some interesting people here so HELLLOOOOOOO Smile

I have outstanding student loans from about 9 years ago well the interest is gastly to say the least will it go away ? I have some disputes but , I know there is money owed also..... Now their starting another agency on me using Ie: Your case number ....our leagl dept. Like Im going to be sued but when I call and ask questions ...they are very quiet ...they dont know if they have a legal dept. funny ......What are my options?
Im in AZ....the blast furnance...........
Thanks in advance
 
Morningstar

Morningstar

Joined: 17 Apr 2007
Morningstar's page
Posts: 609



40 Magic Points
 
 Posted on Wed Aug 15, 2007 1:32 pm  
Are these government loans, or private?

If federal, you might be able to check with the DOE to obtain some info, such as balance due (however, you must deal with the collection agency, not the government). I believe that CAs are entitled to add 25% of the total for collection (sucks, but it's legal). They can also garnish your wages or social security, intercept a tax refund, and you would NOT need to be sued for that to happen. They're violating the FDCPA by their tactics, but proving that can often be tough. You can cut through the crap by sending them a letter demanding that they only communicate with you via mail. Send your letter CMRRR. You might want to consider rehabbing your loans, or settling in the event you have the money to do so.

If these are private loans, still send them the partial cease communication letter. I am not sure how much in collection fees would be allowed to be added, but I'm certain they would have to sue you to garnish.

Quote:
Will it go away?

No. Not even if you file bankruptcy. Student loans fed/state/private are not dis-chargeable (except in the most rare of circumstances...the hardship hearing looks at your earning potential over the next 25 years).

Quote:
What are my options?


Rehab if federal.
Settlement, if you have a good amount of money available.
Work out a payment plan...avoid the public record hit to your credit report if federal.
Get a breakdown of the balance from the collection agency (or possibly DOE if federal loan).

Perhaps other posters will have some additional insight.
_________________
I don't dream since I quit sleeping
 
Dadummy



Joined: 15 Nov 2007
Dadummy's page
Posts: 638



104 Magic Points
Subject: student loans
 
 Posted on Wed Jan 09, 2008 12:23 am  
you should be paying something on them each month they do have the option of adding more interest each month.
 
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