Rec'vd letter from law firm- please help? Today I received a letter from a NY law firm about an educational loan. I don't suppose informing them their fancy degree has yet to prove market-worthy, at least to an extent that would enable me to pay off this loan, will cause them to forgive the debt. The letter reads: --------------------------------------------------------------------------------- Dear Dr. _______ Enclosed is a complete SIS account Snapshot Report listing all charges payments together with ac opy of your Student Term Academic Progress Report until Fall 2005. Accordingly, the sum of $2,724.70 plus interest at 9% $940.03 and collection costs of $1,167.73 for a total due of $4,832.46 remains due and owning. After your review, please forward your check for $4,832.46 or contact the undersigned on or before September 10, 2009 to arrange a payment plan. If you do not make arrangements with this office we will so advise the University and will be governed by their further instructions. This notice is an attempt to collect a debt. Any information obtained will be used for that purpose. ------------------------------------------------------------------------------------- I have no idea what to do. I don't have the money to pay them. I don't really even understand the letter, other than the fact that it is saying pay up and pay up now including our collection costs and interest. If anyone has any insight or help for how to deal with this letter, please share it with me. I would be very grateful.
Contact the Student Loan Ombudsman at Federal Student Aid - About Federal Student Aid before the garnish your wages. Yes they can do that without a court order.
Should I respond to the letter from the law firm too? If so, what should I say, or just as importantly, what should I not say? Is there a way to buy time? What do I say to the Dept of Ed Ombudsman? Thanks.
I had student loan problems years ago... Is this the only student loan you ever had? If so, and it has just been recently assigned to a collector, before they garnish your wages, they should send a letter to you stating that you have a right to a record review and hearing. This is not a court hearing, but an administrative hearing with DOE. If you got the letter stating that you were entitled to a record review and hearing and ignored it without taking them up on that offer then they could start to garnish. I wouldn't make a deal with a collector on this, I would contact the DOE for a payment agreement. My husband and I used the Federal Direct Loan Program and had an Income Contingent plan. Don't let a collector force you to pay down payments to rehab the loan. There is no down payment required to rehab your loan. You have the right to a reasonable and affordable payment plan, and if you're really, really broke and can prove it with documentation you will get a low payment.
