A little background: I started my own business about a year and a half ago, so you can imagine that money is tight. I bartend on the weekends to help me pay bills. I have kept up with almost all of said bills but my student loans. After speaking with a friend of mine who is a lawyer, I learned that I am an IDIOT for letting these go at all. I know that I should have called them and explained the situation (i.e. asked for a deferment/forbearance) but I never did. I guess I was just embarassed, I don't really know. Believe me, I am only now realizing how ridiculous that sounds. So I received a form letter in the mail informing me that my lender is now reserving the right to execute a wage garnishment on their outstanding debts. It never mentioned me in particular, but it nonetheless has scared me enough to want to make this right. I spoke to a third-party debt collector one night, and I am sure that many of you can attest to how "pleasant" they are to deal with. The debt collector mentioned that if I make payments for nine months straight, I will be out of default. This leads me to believe that the debt has not been sold yet. Questions............ 1) Is it possible to work with my original creditor on this? 2) What advice would any of you give me?
Start here. http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html Meet this head on. Student loans never die, have no SOL, do not require a court order for wage garnishment (if they are federal), and they can also garnish tax refunds. Good luck!
Well said JayLynn, after college I had two student loans. One bank sent the letters to my current residence the other bank to my parentâ??s home. My parents filed the letters and I told them i am current on my student loans (little did i know I had one loan directly with the school). Anyway I realized the loan was from two different banks when I defaulted and I finally took a look at the letters. The part that sucked is I could have consolidated right after college and came off nice, anyway to make a long story short. They told me I had to make payments for 18 months, in fact I ended up paying off the loans early in like 48 straights months (the second loan was not for that much money, which is how I overlooked it). They took off the default, and kept their end of the bargain. I found the collection agency I got stuck with to be amicable and when I met my obligation they did exactly what they told me, it was like the default never existed. At the end of day, I grew up a lot from that experience. They taxed me, if memory serves, they tacked on about a huge commission when it defaulted luckily for me the larger loan was the one I was paying and not the one I unwittingly ignored but it was 25% so If I were you I would try to work things out with them ASAP. If they have a deal with the federal government you are dealing with one of the few collection agencies that have some type of regulation and consequence. Try to make as many straight payments as you can, try to get a deferment before missing a payment, you have a lot of options with student loans. If you put your head in the sand though you will pay for it big time with student loans.
Jlynn is spot on. Student loans are not a beast to annoy. These matters take pre-imminence over all unsecured debt and to some extent, even some secured items. In short, it sounds as though this/these account/accounts are still owned by the original creditor. Make sure that you verify the ownership. Thereafter, pay what needs to be paid in order to rehabilitate the loan. I beleive that I am correct in stating that after a prescribed period, the derogatory information is removed from the subject account tradelines.
I had student loan issues and actually filed in small claims court. After serving notice, I received a letter from the federal attorney (title escapes me - DA?) saying they would move to transfer case to federal court. Long story short, I was able to get a settlement agreement out of them. I pay, they delete. And it happened. This was 2005.
Ahhhh, this happened to me. My situation was slightly different, I ran out of forebearance and couldn't afford the payments. Just stopped paying. Dumb move, it went into default and they actually started garnishing my wages. That got me talking to them really fast. Believe it or not they were pretty nice. I went into their rehab program. Their deal was one year of good payments and we start reporting nice things to the credit bureaus. Well that worked with TU and EQ. Of course, Experian still has it F'ed up down as 7 loans. But I have hope, they just fixed the two current loans to reprt correctly (EX had them going into a charge-off status in May 2007, why, who the F knows why EX does anything). I have a good will letter out to the student loan company, asking them to correct the EX report.
Couldn't you just dispute them online with Experian? Dispute them all as "not yours" (because you can't be sure which are and which aren't) and see which come back as verified. If it's more than one, then you can go back to the Student Loan company and figure it out. If not, problem solved.
I did dispute them online, several times over the past year. This is Experian, you know, they don't actually check anything. When I call the Student Loan Company (which in PA is a state agency) they offer to send me copies of my current up to date loans, but they don't know what to do about the imaginary five. At least that's what the harried customer service rep always says. My next move is to goodwill the agency chief, maybe if I send a goodwill letter to him I could get someone off their duff to correct this. This state agency/loan company has a reputation of being difficult about changing things on credit reports. Though, it could just be fricking Experian.
Help I am somewhat in the same situation, just wanted to know-If your loan is in default is it possible to consolidate? What is the backlash for consolidating? If the interest rate decreased on July 1- Can you refinance? Or is consolidation & Refinance are bad words
