My best friend is thinking about paying a woman $200 to get her chgd off student loan off her credit report. I thought you couldn't get student loans taken off by just disputing them. She owes $1100 and the collection agency that holds this has been un-cooperative. She can now afford to pay the $50 a month but they said the first $400 will go to fees! They chrged this off nearly 4 years ago. Is she being taken? I think our best bet is still to try and get BofA to buy back the loan but we can't seem to get to the right people. Everytime we call they give us the phone number to the collection agency and say they are the people we have to talk to. Anybody got any ideas? Of shld she just pay the $200??? I think the $200 wld be wasted. Thanks Beth
The student loan could very well be removed from the credit report and never turn up there again. Still, the debt will not go away, and there is no statute of limitations for collections. Unless your friend really wants to find out how much hell an unpaid student loan can cause, she'd better pay whatever she can voluntarily, regardless of how much goes to fees. Simply put, they WILL get their money! Even if they have to take some very nasty collections measures. If she holds a job, they already know exactly where she works and how much money she makes, and it will take almost nothing for them to garnish her wages, and they don't give a damn whether or not she can afford what they take. She needs to know that there's no time to waste. Once the defaulted loan makes its way back to the guarantor, she's in trouble! When it comes to defaulted student loans, negative credit information is the absolute least of one's problems. I -bullshit- you NOT!
HI Doris Thanks for the reply. Its funny I just posted a reply to your post! Anyway, are you saying that in 7 years this may fall off her report but they can come after her at any time for the full amount? She works as a manicurist and most of her money comes from tips, so they will have a long wait if they want to garnish her wages! Thanks Beth
Student loans NEVER expire (collectible). It can stay on your credit report forever. It's better to either rehabilitate it (takes 1 year, and it comes off your report(s)), or pay it off.. You might get lucky and it may fall off after 7 years, but it probably will show up again (for another 7 years).. Russ
If they are guaranteed student loans (guaranteed by the US Dept. of Education), they will collect by any and all means possible. That means garnishment and withlding of all income tax overpayments forever or when the debt is paid (whichever comes first). I would advise NOT to mess with the government. Trust me, 4 years of undergrad plus 2 years of grad school, with student loans of $57,000, they made sure that, short of dying, I understood there's no chance of getting out of this obligation -not even bankruptcy.
RE: Student Loans & INSPIR The rehabilitation program sounds nice but you should know that ed fund doesn't always follow through on their promise. My loan was rahabiliated in March and ed fund has not removed the negative credit remarks. I have disputed them to all 3 cra and they didn't change the status. Although, trans did change it to a non adverse entry on the second dispute. I have contacted ed fund several times in the last month (5). And I even wrote a letter. They are not helpful. But the point I want to make is.. pay the loans. Get in the rehab program at least you'll have letters from ed fund saying that they will remove the nagative information. I plan to disute again and hopefully the info. will be removed. Just know that you can't count on ed fund to change the info. I now plan to go higher within ed fund, the dept. of ed and the cras.. I'm not giving up. I read a quote the other day and thought of my credit situation. ENERGY AND PERSISTENCE WILL CALL CONQUER ALL.
RE: Student Loans & INSPIR Sure, that can happen. If they do not remove the negative info after saying they will, then you can sue them if it comes to that. Most places will abide by the agreement, but some wont. If not I would advise you to see a lawyer, document all contact (save EVERYTHING).
RE: Student Loans & INSPIR My defaulted student loan is currently with a collection agency. Can I get the rehab through them? I'm hesitant to call them because I know they lie, but I'd love to know if I can do the rehabilitation through them or if there is some other way. Thanks for any info.
RE: Student Loans & INSPIR the rehab program is OPEN to anyone who has not rehabbed the loan before. If you never tried to REHAB it, then yes. They HAVE to give you the opportunity to rehab this student loan. It's better to take care of this Student Loan ASAP. It will always haunt you if you do not. it doesn't have a SOL.
It's possible that it could fall off after 7 years or perhaps because of a dispute that the collection agency or guarantor fails to respond to. Still, it's only a possibility and by no means is it a guarantee. Even if the line is deleted from the credit report, it could just as easily reappear. Many collection agencies as well as guarantee agencies report as little as once a year, so the negative item would probably return on the next reporting date. Still, when it comes to student loans, the Department of Education or the State Guaranty agency normally requires an employer to send a percentage of the defaulter's wages, and tips can also be retained. Failure by the employer to make the garnishment can be a criminal offense. Not only that, income tax refunds will be taken until the debt is paid. It might take years for them to take action, but they will. The longer this debt remains outstanding, the worse matters will be WHEN(not "if") they take harsh actions. To make a long story short, don't screw with the Department of Education. For some useful information regarding rehabilitation, check out the Department of Education's website at www.ed.gov .
