Student loan collection fees

No, the letter says that you owe ZERO...So I'd write a check for Zero dollars, payable to santa claus, and call it that...lol

One problem with student loans is that they're not covered by the fdcpa and there's all sorts of horrible nonjudicial things they can do to take away your money. Another problem is that debt collectors who are trying to rip you off will call and say they're with the US D. of Ed., when they really only contractors, essentially working the way tax farmers did in ancient Rome. They get to keep everything they can steal or extort over and above what they have to turn in to the Govt.

First, find out who that guy really is. Then file suit against his company (NOT the U.S.) in a court local to you for declaratory judgment that you don't owe the money. That'll settle the the matter with him.

Another thing is to demand an accounting. You're entitled to it, and if you don't get it, call the Office of the Secretary of the Department of Education, and find out who can get it for you. Make yourself a nuisance at the highest level until you get someone on the phone who can tell you what you need to do to get a full and accurate historical accounting of all of your principal, interest, fees, costs, and payments so you can tell what's what. Or so you can take it to an accountant (CPA would be best) for independent analysis and verification. I'd bet you've overpaid, 'cause they never calculate the interest correctly.

Now, I always kept maticulous records of that stuff when I was in college, had several notebooks I wrote down every extension of credit, and kept my copies of the promissory notes. I ended up having to take Virginia Commonwealth University to court over that issue, and won. They ended up paying me money. But that was only because I had all of my documentation and was able to help a judge make sense of it.

The lesson is, start keeping good books; and if you don't have good data already, do what you've got to do to get it. Reconstruct all your payments from old check registers, etc. Calculate the interest yourself on a periodic basis, using the formula exactly as stated in your p-notes. If you don't have the information you need to respond from a position of strength, they're going to be garnishing your tax refunds for the rest of your life (and without any kind of hearing, let alone "due process"). Your only recourse will be to appeal, and you won't have the evidence you need to win the appeal if you don't a good job of reconstructing the records.

VLD, if it is a collection agency hired by ED, won't fdcpa applied to them? If they break laws or get involved in unfair activities, we can file complaint against them with ED too. I read somewhere that ED maintains a list of collection agencies and transfer unpaid accounts to them only.

VLD, I used to collect student loans at CCA where the fdcpa was practically religion! They do indeed apply! As far as Joliebeans's fees and little interest go, they were part of what you agreed to pay in your promissory note. However, when you default for whatever reason, you have the right to negotiate the fees and some of the interest. Since you didn't negotiate a settlement of principle plus half interest at least, I'm afraid you do have to bit the bullet on that forty dollars and change. I assure you it will end there.

You're right. I was going on the basis of memory, and the statute has changed - it used to exclude people doing collections related to taxes and student loans (whether or not made by the gov't or banks) from the defintion of "debt collector". The only relevant exlusion I can find now is as follows:

U.S. Code 15 U.S.C. ?? 1692a (6.)(C) ... [the definition of "debt collector" excludes] "any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;..."

Thank you all for your help! :D
I'm just easily confused. lol

You're very welcome. It is easy to get confused when things seem unclear. It's a good thing you came to us!