Checking Account

You could open an account and only put in as much as the loan payment is . . . . That way they can't take more then you have. I would make sure if you do that that you have it is writing from them the amount they will take out each month.

Yes, becase then I would end up being overdrawn through the bank and have even more debt and fees.
;( Why do they need a checking account though? I mean, why can't I just send them money orders. What's the big thing with a checking account...

I totally agree with you . . . . They should accept money orders as a form of payment.

Another thing you could try - There are prepaid debit cards you can buy at some stores. You can put money on it, and if anyone tries to take out more then is there the transaction will be declined. That way you don't have to worry about being overdrawn. You don't get checks or anything, just the debit card. I believe some of them you can set up to have part of your paycheck directly deposited into the account.

Hi Krystal, I have been through this very same thing. And they absolutely refused to accept payment in any other manner from me also.

Do I think this is fair....absolutely not...however, if they garnish your wages then you certainly won't be able to afford to pay for anything.

So really the only option is to open a checking account and only deposit the exact amount that they are willing to accept in payment.

usually they will work with you concerning your living expenses. But, goudah is write...make sure you get everything in writing and keep very good records concerning everything.

Also if possible record all of the phone calls when they contact you....if that is legal in your state. I'll be back in just a sec. and post a link to some websites where you can search the laws concerning the recording of phone calls within your state. That way you can document any harrassment!

Here are the links.
http://www.debtconsolidationcare.com/settlement/phonecall-laws.html

All I can tell you is that you do not want to get into the position that I am in. Sacrifice anything possible to get this back on track.

because under recently passed laws...they can even garnish your social security benefits later in life and their are no SOL on student loans and they are also no longer protected in anyway through bankruptcy.

I for one find this unconstitutional and denies students due process.

I hope I have helped some...and good luck!

I can tell you that my grandughter is working week-ends only at a sonic drive in and is making between $40 to $60 each day. That's $400 extra bucks a week...just trying to think of some options for you.

Don't give up...you're not alone and you can do it!

oooppppsss I meant $400 extra a month!

Quote:

Why do CA's request post dated checks or auto debits??
Statisically they are less likely to miss a payment. Sure, it is partly commission. It also takes more more for a collector to maintain monthly payers.
However, CA's working federal student lonas DO NOT make it a practice to run checks early, or take unauthoized amounts. It costs big bucks for a CA to get FFELP guarantors as clients, and even bigger bucks to get the DOE contract. (My agency spent almost $2 million dollars doing required upgrades just to get the account.)Running unauthorized checks or running checks early is in vilation of the fdcpa and if a CA habitually does this and the borrowers complain, the CA could loose the whole contract. Credit card commissions run 25-50% depending on the age of the paper....student loans are around 9%.
Running a $100 check early only nets the CA around $9 and maybe $2.50 to the actual collector. Not a lot of incentive to mess with checks.

Also op, if you plan on consolidating, having a checking account for auto debit will save you 1/4% in interest.

Well, I suppose I will open the checking account then. I just don't want to get myself in more debt. I know 14k isn't all that much, but it can only get worse, and I'm only 23.

Should I talk to the consolidators about applying my larger student loan that they donot have on file to the smaller one they are already consolidating?

How stressful.

Yes, I do have a second job, waitressing and that's been helping out finally. It's becoming tourist season again. I have NO DAYS off work. I work DAY and NIGHT. I live in Valdez Alaska. My rent is 850 a month! Money is a nightmare. I just want to take the vocational 2 month CNA course so I can get my LPN and make mo money and be happy. :D

Gee whiz...alaska...I have heard the cost of living there is astronomical. I really feel for what you are going through.

My CA also wanted post-dated checks but I absolutely refused this option for the very reason that Morningstar warned you about. So he then agreed on a direct debit plan and al worked out...just as the contract stated.

Try to think of it this way....with a direct debit...you will also have proof at the bank that all payments were made according to the agreement. And not once in the agreement was our account ever debited for more than the amount listed in the contract.

My husband is a truck driver so we rely on direct debit quite a bit for paying bills. And we really haven't had any problems at all.

You are only 23 and still have a lot of time to accomplish your goals. You can do it! Good Luck hun....the ladies above have given you some really good advice!