I have no idea where to begin. My plan is to offer a settlement for my default Stafford and Perkins loans. Loans have been default since 1995 or '98. Dealing with the Stafford loans first... I'm getting calls from credit agency and would like them to stop calling me because they've called me at a family members home at an unreasonable hour (after 11pm) and now they are calling my neighbor. They caught me at a very emotional moment and I don't even remember what I said to them on the phone but I told them I couldn't pay the entire debt whatever it was. They talked about consolidation through William D. Ford agency and I said send more info. Apparently they started the process for me but I told them I didn't even know if I was eligible. Either way the put false info on the application (fake references). The Stafford loan is huge- originally around 9 thousand now it's over 20 thousand and the information on the national student loan data site doesn't jive with what the collection agency says I owe. Questions, Where do I begin? Who do I enter into negotiations with the Credit Agency, the Guaranty Agency, or the Lender? Do I send a Cease and Desist letter to the Credit Agency stating I'll only have contact by mail? Any help and advice would be greatly appreciated.
Student loans are a different beast, but that does not mean that a collection agency can do the things they are doing to you. The first thing I would do is stop talking to them over the phone. Second, I would submit a validation letter also asking them to contact you only via mail. After validationletter, break the phone log out and start logging phone conversations. Every time they call ask them their name what company they work for and then simply tell them to send you anything they have in writting, of course hang up then and do not engage them. Does the collection company has the account listed on your credit report? If they do after they receive the validation letter "track letter online" Send the CRA's a Dispute letter. Under reason the account is disputed, do not lie by sying not mine, simply tell them account disputed. Chances are that you will end up suig this collection agency and if the case does makes it to court you do not want to look like a liar. One last thing, if you want to pay your student loans not sure if you qualify for student loan rehab, but if you do you should take advantage of it. At the end of the rehab term they should clean up the derogatory information listed on your student loans. Thje problem with consolidation is that I think they leave the derogatory stuff in, so if you want a clean report then rehab makes more scense.
Thank you for your reply. I will send a validation letter and request all contact be only by mail. The validation letter under "sample letters" sounds a bit strong. Any idea where tamer ones around? lol So I should try negotiating with the Credit Agency? They are listed on my credit report as making inquiries but the debt they are collecting is not the one listed on my credit report. The debt listed on my report comes from another loan agency and is a judgement. Have to deal with that asap. I don't see loan rehabilitation as an option and want to negotiate for a lower total amount. I'd rather settle and be done with this forever...hopefully. Thanks again.
Student loans are rarely forgiveable - only in dire financial circumstances, probably terminal illness, etc. I would begin rehab as the other poster suggested. Student loans have a whole different set of rules, including garnishment of tax refunds, etc.
I have been through this, but luckily by the time they started calling family the numbers were no longer good. You cannot dodge student loans, they are like the mob, they find you. Hell they don't even have to look, they just yank your taxes, I know from experience. Call the original loan people and try to rehab and make a payment plan and usually after a year or 10 month's they will report them in good standing, just make sure you get it in writing in the beginning and end, so you can send your own copies to the CRA's.
Start at the site below. Apply for a new PIN as I am sure you don't remember your old one. Get a copy of your original promissory notes. Then call the omsbudsman's office and beg and plead for help. Be courteous and be on your knees...I suggest crying too...lol. They may be able to circumvent the CA and set up a rehab program for you. You make your 12 consecutive pmts and off go the negs. You might have to pay the CA's service fees but they won't be 50% of your outstanding loans. http://www.ed.gov/finaid/loans/repa...ks.jhtml?src=ln HTH, clc (copied from another thread...but same suggestion for your prob)
