Roni: student loan questions

Discussion in 'Credit Talk' started by steve2, Apr 20, 2001.

  1. steve2

    steve2 Guest

    Roni, I saw your post over at the quality board, and you answered a few questions for me. Could you answer another?
    You said I could make a settlement offer- Can I make an offer to the collection agency? Or should it be the the federal agency? Can I do it in writing (I don't speak well on the phone, I get too Tense) .
    If I make an offer, should it be for a set amount (Say $5000 for a $8000 debt) or should I ask them to offer me a settlement? None of this debt shows up on my credit report (its 17 years old). Will it show up if I make an offer or pay in full with out rehabilitating the loan?
  2. roni

    roni Well-Known Member

    Re: Roni: student loan questio

    Wow! That was a lot of questions.

    I will start by inviting anyone who has settled a student loan with a collection agency to jump in here. I have not done that, but posters at qualitycreditrepair have suggested it, so maybe you can do a search at that site. I dont recall it here. I think you would do better to deal with the collection agency. Ask them if they offer settlements to test the waters.

    Next, you are always at risk of this hitting your credit report b/c it is not paid. They could garnish your income tax returns at any monent or garnish your wages. Rehabilitation will clear you of any credit reporting of the debt after 12 consecutive payments, but since it is not on your report, I would just call. I know you are nervous, but just remember the person who answers your call is just like you with a family and DEBTS too. EXplain that you didnot know about it and want to take responsibility for your debt but the interest is outrageous and then ask them what they can do for you.

    The worse that can happen is they put it on your report and you rehabilitiate it.

    Finally, GET EVERYTHING IN WRITING. I prefer to speak to someone first so I have someone to direct a letter attention to. Never send anyone money in credit negotiations without getting your terms in writing.

    I hope this helps.

  3. steve2

    steve2 Guest

    Re: Roni: student loan questio

    Thanks! I appreciate your time and effort.

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