Hello All! I have an outstanding student loan from 1986. They finally tracked me down through the income tax I filed last year. They now know where I work. I understand they can get a wage garnishment without going to court. I would just like to pay a lump sum before this happens. The loan was for originally $2,200.00. It is now approxiamtely $5,000.00. Does anyone have a number or email address for the US Department of Eduaction that can help me get this taken care of. Or any advice on the beat way to handle this. Thanks!
I assume your student loan is in default. I had two loans from the late 80's and early 90's. I am currently in the student loan rehabilitation program. In this program, you make 12 consecutive on-time payments, and then your account is in good standing. The default status is removed from your credit report. Were you contacted by the IRS or a collection agency for the U.S. Department of Ed? It is best to either contact the CA (yes, in this case you can contact the CA) or the Dept. of Ed. and tell them you want to be in the rehab program. They may ask for some money up front, and then work out a payment plan for you. In my experience, I have found that things work out better for you if you contact them first, instead of waiting for them to come after you and garnish your wages. If you go the student rehab route, DON'T MISS YOUR PAYMENT DUE DATE. If you do, you have to start all over again. You can get more info here: http://www.ed.gov/offices/OSFAP/DCS/repaying.html
Thanks for the info Buck. I was contacted by ACS Inc., who is representing the US Dept. of Ed. When you went into rehab, did they reduce the current balance you owed?
They didn't really reduce the amount I owe, but I was told after the loans are rehabilitated certain collection fees will be waived. In my case, that's hundreds of dollars. We'll see. Maybe somebody else here has more experience with that. Both of my loans will be rehabbed in a few months, and then I plan to apply for a consolidation loan.
****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >I was told after the loans are rehabilitated certain collection fees will be waived. Buck ================= But will that remove the CA listing from your reports.
I don't believe so lbrown. I was told by the Dept. of Ed and the CA that rehabilitating the loan puts it "in good standing". In other words, the default status of the loan is removed from the CR, and it shows "pays as agreed", but I have heard from other people notations of late/non payments from the past will remain. Still, it's better than showing up as a defaulted loan, and it shows you are currently making payments. Most importantly, it prevents the U.S. government from garnishing your wages or seizing your tax returns to collect on your student loan.
Speaking of seizing your tax refunds - will the offset placed on my returns be taken off when I start making my rehab payments? Thanks again!
Tamara I'm just a newbie....but learning fast. ================================== In that case one's for you>>****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >
>>Speaking of seizing your tax refunds - will the offset placed on my returns be taken off when I start making my rehab payments? Thanks again! Tamara>> I had a concern about this also, and my experience has been that once you begin the process of rehabbing your loan they leave your tax returns alone. Your CA would have a definitive answer for you about that one.
That's all well and good, lbrown, but I don't think it helps the person who originally asked the question. Tax time is over for this year.
Re: Re: HELP! Student loan emergency [color=dark green] AGREED ; HOWEVER[/color] it might be beneficial for next year ****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 *******************************************************[/b~~~~~~~~~~~~~~~~ >
