Re: Re: Re: Re: Re: Sentence served! Student Loan I never said the IRS initiated anything. I said they were a arm of the federal government. So commercial collection agencies can use the IRS to get monies back? Hmm I learn something new everyday.
Re: Re: Re: Re: Re: Re: Sentence served! Student Loan Then this is what happened to me. The court system never got involved in my case. I may have been notified by letter from the CA before the garnishment happened (or I may not have), but I wasn't checking my mail at the time. When any loan is in default, all bets are off. The remaining balance is due in full and the creditor can get their money by judgement, wage garnishment, tax offset or whatever. People do not understand. The federal government doesn't HAVE to warn you about anything when you are defaulted on a loan with them. It does, in some cases, but it does not HAVE to. Oh, okay. Now I see. So, when you wrote, "if the IRS really wanted their money they know where to find her", you weren't really talking about the IRS wanting anything from her, exactly. Right? Please. If the servicer ever catches up with you, and you refuse to pay them what you owe them, I guarantee you that you'll get to see it first hand.
Re: Re: Re: Re: Re: Re: Sentence served! Student Loan http://www.collectionindustry.com/index.cfm?id=8&news_type=1&news_id=9855
Re: Re: Re: Re: Re: Re: Re: Sentence served! Student Loan Registered Users Only The information you have requested is provided as a free service to registered users on our site. There is no charge to register, and you will gain access to many valuable industry-specific tools, such as daily industry news, a comprehensive searchable directory and the Job Exchange. Your information will not be provided to any 3rd parties. For more information, please review our Privacy Policy So what did it say?
The IRS know they have bigger fish to fry. SoParkDiva ================ Only problem is the IRS isn't doing the frying and taxes aren't the fish being fried in this case. THE END ** *** ** LB 59 """""""""```~~~```'"""""""""
eventually they will take your tax return, if you get one...or your spouses..this happened to us..they just ignored us for yearas then all of a sudden my tax refund doesnt come and I get a letter later on telling me 'we took your tax return, have a nice day' its not good advice to ignore anything that is related to the federal govt. they can make bad things happen to you.
Cindy, After having read all the way through this thread. I have to agree w/ marci. The individuals telling you that you can skate on these loans are not doing you any favors. They may have avoided the consequences, but they would be the rare exceptions. If these loans are Federal, and backed by a Federal Guarantee you will never get out from under them. The interest grows, the fines grow and they never go away. I speak from my own sorry experience. I had a very good reason for my loans to go into default (Cancer). The Govt didn't care! I let them sit in default on what I considered the principle of the matter. The Govt didn't care! $5000.00 borrowed became $20,000.00 owed. I wanted to buy a new car, I paid 15% and 11 points and 6 mo interest penalty for early payoff; the Finance company associated w/ Wells Fargo didn't care! I went through rehab and now my credit is greatly improved (one neg from cc that drops off next Feb if I am not successful at Validation Request) What did I get for doing this? My Credit Union just refied my truck loan @ 3.99% and I am closing on a house next week (the first house I have ever owned). After all of the pain this whole thing has caused me I'm done and I won't look back. Bottom line...Pay off the loans and get it over with. You will not get out of it (to those who think they have, if so, good for you, but don't be surprised when they Govt mails you an invoice). Sorry about the long rant...this topic is one of the most painful experiences of my life (including the Cancer!!) Good luck to you Cindy. SoloLobo
I *definitely* agree with what you said... The worst credit mistake of my life was blowing off my federal student loan. I had heard about the *very* large percentage of defaults, so figured I would be in the majority, that the student loan people would be 'used to' it, and it wouldnt be a big deal. Instead, I was late or didnt pay at all. My student loan got sold to a total of three other companies, all of whom trashed my credit report (even to this day). My loan went into default, and then I wised up and got serious. I started making automatic payments a long time ago, and through the Loan Rehab program, my credit should *finally* be cleared up in the next month or so, but OMG has it been painful The interest was atrocious, not to mention the 18% 'penalty' that was added to the principal just because I defaulted in the first place. Being in default on a Student Loan (Fed) has also prohibited me from getting an FHA loan on my very first house. I am looking forward to the derogatory remarks on my CR being removed soon, and learned a *very* valuable lesson out of all this... PAY YOUR STUDENT LOANS!
Hi Delta29..Question... Did the student loan pop back up on DH's credit reports after he started rehab? If so, were the positive TL's?? Thanks!
these loans were in 1985 & they have since cracked down very hard. I say if they haven't gotten you yet THEY WILL. How much do you owe? My wages were garnished for $2000 loan. Interest & late fees are going to be brutal. Hope you're prepared to pay out the wazoo.
There is another thread where the poster (I believe the name is attempt) had wages garnished with no notice. Yes, they will eventually find you. And what if you've just gotten that "perfect job" that you've worked so hard for all these years, and then--garnishment order. Yes, you'll be embarrassed. And depending on your job (for example, if it involves a security clearance, securities license, insurance license, etc), you may not just be looking for a new job, but for a new occupation. And, as others have said, there is no SOL. So staying "below the radar" for seven years isn't going to solve this one. A bad mark on your credit report will be the least of your worries. And I see that someone finally mentioned something else. You won't get an FHA loan, or a VA loan, or anything else guaranteed by the government as long as you are in default on a government backed loan. They WILL find you (it may take years, but they will) and you WILL pay--including interest.
Hi, lurker here.......... This happened to my DH. He got a notice @ work that the garnishment (10%) would start next pay period. He'd been on the job for a year (first good, non contract job). This was 2004 and the loans (Stanford I believe, not sure) were for 1988 and 1989. These were also not large amounts (2 years @ a state university.) They had been seizing his tax returns and they just recalculated the principle and the interest with a 19% interest rate. They have made him an offer of a promissory note (which I am here researching) with an 8.25% interest rate. His credit is CLEAN now. Since I first ran a report on him in 2003 it has not been reported. Will signing a promissory note be advantageous to building his credit, or is it a baddie (no mark on report vs a baddie that's been cleaned up?) If he signs it am I liable for it if something happens to him before the loan is paid off? We were not married when he got the loans, but we are in a community property/debt state. What is the difference between signing a promissory note and rehabbing the loan? Sorry for all the questions - perhaps I should read further first.
this is me, too except for the loan in question was never mine. From what I can figure out, the Perkins (for $1200) was in 88, and I graduated in '91. I did not know this loan existed until we went to purchase a car in '01. (I used cash up to that point.) Never had a notice, nothing. Nada. The bank said it was charged off from the college in '96. I do have Staford loans that are up to date with no problems, but this one is killing me. I have called the college, and they refuse to help me. For the past year or so, General Revenue keeps calling me and told DH that the amount was like $4500. At this point, even though it's not mine, I would gladly pay of the $1200 in cash to keep them form harrassing me. Sigh. Not to hijack the thread, but any suggestions?
I have a PLATO loan that is nearly 6 yrs old in default. Is that considered a federally backed loan? Or is it similar to a normal loan and will just drop off in a year. It is listed on my credit report as "educational" loan
"this one is killing me. I have called the college, and they refuse to help me. " Get a good attorney with consumer debt collection litigation experience. If he knows what he is doing, he can get them to pay his fees to fix it. Start documenting damages: denial of new credit accounts, can't buy a house, notices from other creditors that rates are being raised, high insurance rates, etc. Try to live your life as you would be able to if this wasn't there, and see what problems you have. Get paper copies of all credit reports, with FICO scores. And make sure you deal with any legitimate negative accounts, if practical, so it is easier to show all damage is from this error.
i had a defaulted student loan from waaay back in 1986 that had long since dropped off of my credit report after my first dispute. i was like ...yay...see ya. a few years ago, someone from pioneer called me about the debt. i laughed at him and hung up. i did some research and found that the debt had no SOL, and went onto the federal site and saw that the debt was with pioneer. the next time they called, i entered into a repayment plan with them. it never came up as a collection or as any neg on my report. once i made payments for about 9 months, it showed up as a current acct on my report with no lates. not sure if this would be true in everyones case, but it went well with me. this was my second to last old acct hanging over my head, and was glad to get a handle on it finally. i don't think you want to mess with the federal government, they will get you everytime. good luck
I know this thread is old but someone else upped it so I'm going to post a response to this post. It has been 4 years since I posted in this thread and "they" still haven't come after me. My credit is still excellent and I STILL say there is life after 7 years when all negatives fall off your credit reports.
