I am in default on my student loans and want to get out of it. My debt is old and I want to pay a reasonable lump sum if I can afford it. My original loan amount was around $33,000. A few years ago, a CA convinced me that the best way to take care off this loan was to consolidate (I did not consolidate right after school). The total consolidation amount was for just over $90,000 because it included all the penalties and interest accrued. Since I had not had much sleep for many years over this, I filled out forms for consolidation of the loans. They did not tell me that it required my spouse's personal information. I took out these loans for school before we were married, so my husband has told me that on no uncertain terms will he fill out any of his information. He told me that it was my debt and he would not help in any way. Because he refused to fill out any of his information, that loan went into default as well. Currently, I am only working part-time because I have a 5th grader with Aspergers who needs most of my attention, as well as another child. Through my part-time job, I have managed to save up about $60,000. The government has taken about $5000 in tax refund money over the years to offset my debt. I have heard of people being able to negotiate a settlement figure with the government, but I have no idea how to go about this. Can anyone help? I do not want to negotiate with the CA, because I know that they lie, cheat, and try to steal your money. I had a CA contact me on my cell (I have no idea how they got the number) and tell me that if I do not work something out by Monday at 5PM CST, that they had permission to garnish me. I have no idea if they know where I work because the CA caught me off guard by calling my cell. Should I ask them if they know where I work? Or do you think they already know? I have no other debts to my name and want to get this black mark off my record. Is there a way to settle this outright for a reasonable amount? Is double the original loan amount (not the consolidated loan) a reasonable amount? I am sorry this is such a long post, but I hope someone out there can help.
an't really comment on the studemt loan issue - someone else might chime in on that. Regarding your question if the CAs know where you work - of course they do. The govt. has already taken your income tax refunds - and presuambly shared your employer information with the collection goons.
collection goons Greg, Is there any way avoid dealing with the collection goons? I really don't want to be convinced into doing something that is the best option for them, and not for me. I have read many postings today and there are sooooo many horror stories in dealing with the CAs.
You should call the Ombudsman at the Department of Education and see if they can help. Explain your situation and that you would be willing to settle or set up some reasonable payment terms. They can advise you on your options. You may HAVE to work with the collection agency, though. Student loans are one area where they do not have to sue you before taking garnishment action. Call the ombudsman right away and see if there is an alternative. Student loans will never go away.
Thanks Hedwig. I will try the Ombudsman first thing in the morning. I realize that student loans do not go away. Do you know anyone that has settled with the Ombudsman? I looked for postings on this website and have not found anything about it.
more student loan questions Anyone know the CA called ACT (Account Control Technologies)? Do they have "permission to garnish my wages" (that is the exact wording that the CA used)? Is this a scare tactic? Again, I am not trying to get out of my debt. I am just trying to come up with an honest, manageable solution.
They probably do have that authority, if they're collecting for the government. Government debts can be directly garnished without a lawsuit first. That's why you really need to contact the ombudsman first thing.
