Wage Garnishment/Refusal to Validate Debt

Unfortunately when you consolidated you agreed to the balances. Any validation of the debt after that point would only be the prom note from the consolidation itself....WDF does not have to provide you with anything prior to that point.

FYI...federal student loans are NEVER sold. Default claims are filed and your guarantor places the account with a CA. Since you only made two payments post on the consolidation, you dont have much of a payment history.

You now have 2 sets of collection fees at 24% included in your balance...this is the cost of defaulting. You are also dealing with loans that averaged 8.25% to 9% interest rates from the early 90's. SO having a balance that high right now is very reasonable. When you consolidated 6 years ago at $60k, your interest was over $400 per month.....accrued and captitalized interest adds up fast.

There have been far over 2 CA in total, more like 15-20. And, I thought there was a maximum cap on how much an undergraduate could borrow...and isn't that amount less than 60K?

You didnt borrow $60k....that is your balance with accrued and capitalized interest plus your first set of default fees. Second time you defaulted you were charged it again.

By my calculations, you are now probably looking at over $600 a month in interest charges alone

The letter from the current CA states: 19,407.39 principal, 7607.35 interest, 6575.62 charges = 33,590.36 (that is the first line listed, then the second line listed states: 38,734.19 principal, 15,183.12 interest, 13,123.93 charges = 67,041.24
Balance total 33,590.36 + 67,041.24 = 100,631.60

To me that reads I borrowed a total of 58,141.58 (principal), have a combined total interest as of the date of the letter of 22,790.47, have a combined total in collection charges of 19,699.55.

So, the way I understand it is they are stating that my principal (amount I borrowed) is just under 60K the rest is interest and fees.

Am I reading this wrong? Is it stating that I borrowed the 19K in student loans and they were allowed to double that and that 19K borrowed has grown all the way to 100K???

You consolidated $19K and $38K in 2003. Multiple loans, probably sub and unsub loans. Your 2003 principal balance when you consolidated included your original principal, accrued and capitalized interest and 24% in collection fees. You started fresh in 2003 with a new consolidation loan of about $58k. By my best guess your interest rate was around 8% making with interest of about $400 per month. When you failed to pay, the interest capitalized on itself and when you defaulted again, you were charged an additional 24% in collections fees. They didnt allow this to happen...you did.

I am still confused on the original amount borrowed. I never borrowed the 38K. I only borrowed the 19K. That's it. They didn't consolidate 19K plus 38K worth of loans. I only borrowed the 19K. That is all the money I received. That is why I am confused on how just the principal amount is now 58K. I can understand the interest and fees continuing to grow over the years. I am just stuck on if I only received 19K from the government to go to school how that translates to 58K. Maybe there is something I am missing or just not understanding. Yes I had multiple loans, very small amounts...2K, 3.5K, 1.5K etc that all added together equaling the 19K - which is the total amount borrowed. They were consolidated in 2003. I get stuck on the 38K part (which I did not borrow). And how the 38K gets added to the 19K. And I am fully aware that no one did this to me and I am the one that borrowed the 19K. I am absolutely fine with paying that back plus interest and fees. I don't dispute that, never have. I would gladly start paying it tomorrow. I am not trying to get out of my true debt. I just can't see borrowing 19K and owing 100K on it and still growing. That means my original 19K to earn my measly AA has gotten 81K added to it, almost 80% more than my original debt. I dont' work in the finance industry, but that seems outrageous to me. I can see even with high rates and fees that 19K growing to 40-50K, but not 100K. Either I am truly missing something about how this works or something is wrong.

Your 19k in original loans probably included sub and unsub loans.You borrowed from 1990-1995 You defaulted which means you have many years of accrued and capitalized interest PLUS your first set of 24% collection fees. Throw the 19k you consolidated out of your mind....that is not your original 19K, just a coincidence. Direct Loans always breaks things down in two sub and unsub loan disbursments when you consolidate and the 19k number is confusing you. Any unsub loans you originally took out would have been accruing interest from the day you borrowed them so it is very easy for add up.

The original loan balance accrued interest and that interest was capitalized which means you were being charged interest on the interest. Then the fees....they add up. I ran numbers thu a compounding calculator interest calculator and even without knowing dates of borrowing and default, the numbers work.