Re: Re: DO I HAVE TO DEAL WITH CA? 1. You still havent even told us, is this a goverment loan or a prvt loan. 2. If you have read up on proper validation and know they have not met it.. What is the question here. Send a intent to sue letter to them for continuing collection activity without proper validation. 3. Your letting yourself get bullied by these Collectors.. 4. If you know what is and is not warranted regarding validation.. You should also know the steps to take after it is not provided. 5. Stop being scared and basing your decisions out of fear.. and use your head.. and make them follow the law.. 6. I do not run out on debt.. I do however request proper validation.. Not only to make sure they are the ones who are suppose to be collecting and have the right too.. also to cover my ass in case in the future I get a call from another collector on the same account. 7. Am I well intentioned yes.. 8. We all have said basically the same thing, but you arent listening.. Get validation.. PERIOD.. You do not have it from them.. You should know what to do.. since you have researched it.. 9. YOu still havent given us any background.. Is this reporting to the CRA's... is it federal or Prvt.. 10. Ya, at this point I am kinda rooting for the CA.. cause I have taken the time as others have to try and help you.. and you dont listen.. Dense it not knowing.. Knowing and not doing anything is being a ass.. Sorry..
Re: DO I HAVE TO DEAL WITH CA? kcwell, I understand your frustration, but please understand that you didn't get yourself in this position overnight, and consequently it won't disappear overnight. If it's a defaulted federal loan your options are as I stated before, rehab or pay the garnishment and try to force the validation. If you've never paid, the paper trail is pretty darn easy for the CA/OC. Your contract and your the OC's interest with the principle that has accrued won't be hard to find.
Re: Re: DO I HAVE TO DEAL WITH CA? Now I feel like a tool.. I dont know dittly about federal loan requirements or actions on defaulted ones, as I do know they differ from prvt.. My advice that I spent all that time typing was for prvt as that is what I have experience with.. I only have my self to blame.. for not making you state the facts before offering advice.. I am getting a drink..
Re: Re: DO I HAVE TO DEAL WITH CA? Thank you both very much and I promise to be more informed before I waste your time but thanks again anyway. I am going to request rehab on this issue since I cant afford to have them garnish. Ijust pulled my CR from RELS there are a couple other issues. Just FYI these loans I did not know about until recently. I was a full scholarship athlete that apparantly(very naive @ 18 and no family ) signed loan papers that I thought were renewal papers for my scholarship and grants for extra money. I have recieved letters about these loans and previosly ignored them. My fault entirely.
Re: Re: DO I HAVE TO DEAL WITH CA? Don't feel like a tool, you're new to this and it takes time. You can force a validation from the CA, which is supposed to hold up the collection activities (including garnishment) until they validate. This will buy you a little time, maybe. The reason I say maybe is because they may ignore the request (a violation) and continue to garnish. You've got two things to do here. #1) Contact the Dept of Ed and get this loan rehab'ed. DO NOT PASS GO, DO NOT COLLECT $200!!! Just call them right away (the one GOOD phone call that you can make) #2) Hold the CA to the FCRA and rack up violations against them. It will help get them off your back, and if you have them on violations the money from your successful suit will defray the costs of the loan. Bottomline, pending validation, you are on the hook for the money, and you'll have to pay one way or another.
Re: Re: DO I HAVE TO DEAL WITH CA? As others have said, the guarantee agency does not have to go through the procedures that other creditors are required to follow as far as collecting on a governmnet insured student loan. There is no statute of limitations on them to collect, and they do not need a civil judgment in order to begin garnishee of your wages If they have found you, and know where you work, bank, etc. then the best you can hope for is that you are eligible to "rehabilitate" the loan with them and get current on your payments
Re: Re: DO I HAVE TO DEAL WITH CA? I have contacted the OC and they arranged a payment schedule of $150 and told the CA to stop the garnishment with receipt of my payment. Here's a new question If I'm able to pay this loan lump sum do I negotiate all these collection costs and fees which are totalling near the principle or do I continue to rehab to save my credit (does interest still accrue while its rehabbing?)
Re: Re: DO I HAVE TO DEAL WITH CA? I'm not an expert but I think the interest keeps accruing during rehab process. I have also heard that the guarantee agencies do not negotiate collection costs / fees but I can't imagine why they would not do so in exchange for a one-time lump sum payoff. good luck!
Re: Re: DO I HAVE TO DEAL WITH CA? Since the CA has violated the FCRA (re: your validation request) you might have them over a barrel on trying to collect this amount. Again, you need to press for the validation. Secondly, if you consolidate your loan(s) it is considered a satisfaction of the original loan and it is pulled out of default as well as out of rehab. You can then request foreberance (a renewable temporary halt of payments for up to 1 year, although interest accrues) if you are in a bad financial situation. Check here for consolidation information: http://www.loanconsolidation.ed.gov/borrower/beligible.shtml
Re: Re: DO I HAVE TO DEAL WITH CA? do not pay the rehabbed loan in full. I was recently told that you have agreemetn with them to make the to the 12-14 monthly payments in order to have this loan taken off your report as 'defaulted.' If you pay up the loan within that period, then it will be reported as defaulted still, because you did not live up to your agreement with the Department of Education. Just a word of caution. After the rehab period is over you can consolidate your loan for lower payments if you so need to.
Re: Re: Re: DO I HAVE TO DEAL WITH CA? YOU CAN CONSOLIDATE THE LOAN OUT OF THE GATE even if it's defaulted, or in rehab!! I don't know what is being missed here, but let me explain again... I personally had 6 loans in default, I started rehab, and then screwed up on this too. I had a tax return held by the IRS to pay on the loan, and I needed to buy a house. I discussed rehab with the lender, but because the loan stays in the default status until the rehab program is complete, this wouldn't work, as no lender would touch me. The lender suggested that I consolidate, and I took that approach. 6 loans consolidated - better rate - out of default - and in forebearance. Sorry to sound pissed about this, but there is absolutley NO REASON NOT TO CONSOLIDATE, unless you have defaulted on the consolidated loan, and then you have a world of problems.
Re: Re: Re: DO I HAVE TO DEAL WITH CA? well yes you can consolidate, but if you are already in rehab it is NOT a good idea to break that agreement and then consolidate. But I see what you are saying.
Re: DO I HAVE TO DEAL WITH CA? This was a COURT ORDER??? Or are they just "BILLING" your employer??? The CA can NOT just "BILL" your employer WITH-OUT A COURT ORDER!!!
Re: DO I HAVE TO DEAL WITH CA? I think in the case of defaulted student loans, they don't need a court order. They can garnish bank accounts, wages, and tax refunds.
Re: Re: Re: Re: DO I HAVE TO DEAL WITH CA? Not a good idea as viewed by whom? The originating bank? Of course they wouldn't see it as they are not getting the interest any more, but that's as far as it goes. As well, most rehabilitated loans are subject to fee's for the rehab program which go back the the originating bank. You are not considered as "breaking your agreement" because your agreement, originally, said that you'd pay the loan. The consolidation does this is essence, because you are having the government buy out the loan from the originating bank and it's considered PAID. It's only a bad idea to consolidate if the consolidation rate is higher than the original loan rate. So, the trade of is a possibly higher loan rate, or having defaulted loans on your reports for 12+ months. As well, George, there is no court order needed for garnishment from a defaulted federal loan. As you see in the posting above, the government has mandated that if you don't pay them voluntarily, they will just take it from your wages and from your IRS tax refund (if due). Your tax dollars at work again :-(
Re: Re: Re: Re: DO I HAVE TO DEAL WITH CA? Tiger is right. they can garnish without a court order. The only thing I can do is request a hearing to fight the garnishment. Also, I did some research and there is possibly a way to consolidate a defaulted consolidated loan as well through William D Ford Dept. of Ed I'm checking on it now I'll let you know what I find.
Re: DO I HAVE TO DEAL WITH CA? Please read my postings on student loan garnishment, I think they were made back in 04/03. They do have to notify you they are garnishing your wages and you have a right to a hearing. New laws were enacted this year -- as far as what I can read from the Federal Register, they have to produce paperwork, and you can have a hearing before an administrative judge if you're contesting the garnishment. It's not an automatic thing, although they don't have to get a formal judgment from a court. They actually do have procedures they are required to follow and do not have COMPLETELY unlimited powers.
Re: DO I HAVE TO DEAL WITH CA? I think the reason they said it's not good to break the rehab agreement and consolidate is that if you consolidate, all of the negatives stay on your report. Student loan problems are hard to remove. However, if you rehab, after 12 on-time payments all negative marks are removed, so you'll have much better credit at that point.
Re: Re: DO I HAVE TO DEAL WITH CA? When I consolidated all of my loans showed as paid, with no late payments. What you are saying is not quite right.
