Question... I was recently served a summons for National Collegiate Student Loan Trust. I called them and the person was very rude and short with me about everything. I had a baby that was crying and the gentleman was less than empathetic or willing to be a little patient with me. I entered into a payment agreement that will need to be renewed every year. Honestly, I dont remember this loan and have never gotten any bills or information from it for years. I felt very bullied and anxious while on the phone with them and in retrospect, should have done things a little differently. Needless to say, what's done is done and there is now a judgment with a payment option hanging over me. (figure it was better than being garnished) I have two other loans that I am paying on and am a single parent with an infant - so I am doing to Income based option. Is there any hope for salvation here? Is there a way I can consolidate this debt with the other loans? Please help!
Welcome to Creditnet nln! I'm sorry to hear about your experience with NCSLT. Had they already been awarded a summary judgment when you contacted them? What kind of payment arrangement did you enter into with them? Also, are the 2 other student loans Federal or Private loans? How much are the loans for and what are the interest rates?
The summons was already served saying that I had 21 days to answer. I think I contacted them a day or two later to inquire about it. They said the loan was with NCSLT and was for $8,000. It didn't ring a bell while I was on the phone and i asked for a little more info. That's when he got really rude with me and pretty much told me that he was going to hang up and I needed to organize myself before I called back! I explained back that I knew my rights and I was simply asking for information. I asked if payments had ever been made by me and he stated that he could not obtain that info, but obviously it was my debt since it was linked to my ssn and they had all of my info. He kept asking me how I wanted to take care of it and I got very frustrated...he was asking me to pay the whole thing over the phone with him or else the court would order it! I told him that my only option was to make payments and he told me that they could accept $300 a month for five years to pay it off. Again...very frustrated I told him I could not afford that at all...he then took my basic income info and knocked the payments down to $115 a month, but that I would have to enter into a new agreement each month because that was such a little amount! After getting off of the phone I did some research and found out that it was originally a debt from American Educational Services (AES)...a small loan (I think private, I'm not sure) that I applied for my last summer of college. the loan was originally $2000. I had thought that my father (who has gotten me in a lot of credit trouble) had consolidated it with my Direct Loan, and it was never paid! I currently have two loans out that I am in the process of consolidating with direct. Without them consolidated, the total per month between the two plus this payment plan would be $500! Again, I'm a single parent with an infant and I cannot afford that! i believe the interest rate on the two separate loans is around 6%. I'm in the process of consolidating with Direct online but wanted to know if I could get any help (and some hope) with this situation. AES is in the drop down list of choices for loans to include with the consolidation...but when I went to AES' website - my loan info is no longer available since it was sold. Sorry to write you a novel...I'm desperate for some kind of assistance with this mess! Thanks
It doesn't sound like they've obtained a judgment yet, so that's good. You do need to make sure you answer the summons though, or else they might quickly obtain a summary judgment. Don't ignore it. I wouldn't agree to entering any payment arrangement with them that would require you to enter a new agreement each month either. That sounds ridiculous. If you can afford the $115 per month, then get the agreement in writing and make sure it's not something that needs to be renegotiated all the time. Have you been dealing directly with NCSLT or some type of collection agency acting on their behalf?
If you were served with a summons and a complaint, you need to file an appearance with the court, then answer the summons. Then you get to conduct discovery. This where you request all the documentation that supports their case. For all you know this could be somebody who stole your garbage and made this up. Make them prove it. What did you study in college?
You said that they filed the judgement based on entering into the payment agreement? Did you get anything from the court saying that? If it was me, I would file an answer. If they filed a judgement based on the agreement, I would memorialize the way the representative treated you. This is an example why talking on the phone isn't in a consumer's interest. No legitimate creditor would refuse to provide documentation on a debt, especially one they are trying to sue on. While it's most common with 'payday' loans, some collection agencies have chosen to resort to what the FBI itself classifies as extortion. Threaten suit, and force the mark to settle sight unseen because of the fear of a judgement.
