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defaulted loan payback

Date: Sat, 05/26/2007 - 15:02

Submitted by anonymous
on Sat, 05/26/2007 - 15:02

Posts: 202330 Credits: [Donate]

Total Replies: 7

defaulted loan payback


i started attending a school in a foreign country that i took out a 2500$ student loan (20 years ago). the loan was not taken care of and forgotten until a few years ago we started applying for the child tax credit and received a refund on our taxes which was then confiscated by the collection agency (allied international)by this time the loan with interest was up to almost 7000$, but with the taking of our returns(3,443$)should have been cut in half.we didnt file for the past 2 years and when i called to find out what was going on with my debt i was informed it had been turned over to another agency (west assett management)who informed me my present debt is 4400$. they told me if i pay it off in one shot it could be reduced to 3100$. as for credit ratings, i do not own any credit cards and am still living in debt, still outside of the u.s..also the refund we received is from my wifes salary (she has been kind enough so far not to file an injured spouse claim and allowed the money to be used towards my debt). my question: how much bargaining power do i have and how much can i realistically expect them to pay off, after all, the original debt has been paid off to the first collection agency with interest.
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If the original debt wsa paid off to the first collection agency, you should contact them to demand something in writing to state that the debt has been satisfied. Once you receive this, mail a copy of it to west asset management. If they continue to try and take any future funds, you can take action.


lrhall41

Submitted by Tiffany99 on Thu, 10/04/2007 - 11:23

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CA's to not initiate the tax offset ....the FFELP lender or the USDOE does that. Since the OP admits not paying on this, he has to expect that he is going to have a ton of interest, capitalized interest and collections fees attached to his original $2500
balance. With this old a loan, I also have to assume that he has been subrogated by the feds, which entails additional fees.

Quote:

If the original debt wsa paid off to the first collection agency, you should contact them to demand something in writing to state that the debt has been satisfied. Once you receive this, mail a copy of it to west asset management. If they continue to try and take any future funds, you can take action.


This stagegy is futile considering that when they take a tax offset it is applied to fees and interest first, then principal. At this point the OP has not even started touching his principal balance.

OP....the DOE knows they are gettin payments via taxes so they know you have some attachment to the US. They have offered you a reasonable settlement. They could just sit back and wait.


lrhall41

Submitted by SOAPLADY on Thu, 10/04/2007 - 13:22

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A spouse can file for injured spouse to get there half back.

Defaulted student loans also will affect FEMA family benefits too. If a spouse is in default and a natural disaster comes thru, the family is entitled to only basic FEMA assistance....clothing, food and water. The family would not qualify for any housing benefits or grants. FHA mortgages....one spouse might be the borrower bt FHA will not allow someone to be put on the title of a house with a default.


lrhall41

Submitted by SOAPLADY on Fri, 10/05/2007 - 13:09

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i was paying on my student loan but once i had my son i stop because financially i couldn't afford it anymore now the loan is defaulted and i'm trying to get my credit back right because i'm not trying to be staying in an apartment for the rest of my life i want something i can call my own. so i wonder if i call and make payment arrangments will they work with me and not add so much interest or should i just file for bankrupcy?


lrhall41

Submitted by blinkyberry on Fri, 10/12/2007 - 17:06

( Posts: 108 | Credits: )


Quote:

i was paying on my student loan but once i had my son i stop because financially i couldn't afford it anymore now the loan is defaulted and i'm trying to get my credit back right because i'm not trying to be staying in an apartment for the rest of my life i want something i can call my own. so i wonder if i call and make payment arrangments will they work with me and not add so much interest or should i just file for bankrupcy?


You need to call and make payment arrangements before they start garnishing your wages! Unfortunately there is nothing you can do about the interest...it is going to continue to accrue and it will not stop. Filing bankruptcy wont help you either...student loans are non dischargeable in BK.


lrhall41

Submitted by SOAPLADY on Fri, 10/12/2007 - 18:40

( Posts: 17315 | Credits: )