My wife has a student loan for $4000 that showd up from 1986. They filed a judgement against her without ever sending her anything. The US Justice Dept. is the collector. They have an atty handling this that I left a message with to discuss. What are my chances of settling for less? What should I offer?? Please help! Thanks!!
Even though the collection agency works for the government, they still need to fall under the rules of the FDCPA. You can get this judgment vacated. This doesn't get rid of the student loan problem, though, there is no SOL on student loans. Her loan is in default, and the collection agency is going to hammer on her to collect it, and has probably already added 25% fees on top of the loan (maximum allowed by law.) Her choices: If you guys are going through tough economic times, it's possible you could get rid of this loan all together through a hardship program and some community service. It's also possible (though not probable that you could rehab the loan.) The best thing to do is to go to the Dept of Education's excellent website: http://www.ed.gov. Good luck!
Tmitchell, do you say they would only settle for the full amount because its a student loan or because it is a judgement?
I don't think it would matter. Since it's a judgement, I'm almost certain they won't settle because they can now garnish your wages or offset your taxes so they will get paid either way.
Its against my wife only. She is on the deed with me and that's where I first noticed the judgement. My wife has no income and they have never ioffset our taxes maybe because we file jointly and she has no income so injured spouse would get most of our return back to us. I was thinking of offering $3,500 for thr $4660 student loan? Any thoughts?
I've heard that by working in certain jobs (medicine/education/law) in poor areas someone can qualify for a reduction of their student loan. Is this true? I called Sallie Mae and they said they did not participate in the program. Any advice would be appreciated. Best thing to solve this student loan debt would be to settle it NOW before they attempt any more legal action. The government will not do you any favors. Best of luck, Robert
Yes - But it's Perkins Loans that qualify for that program - not stafford FYI - that options is void when you consolidate your loans
