Student loan debt after reconsolidation twice

Quote:

Thank you. I am just wondering if I applied in the wrong way, I just went online and entered my information. Do you recommend that I consolidate through the U.S. Depart of Ed or Sallie Mae, or some other lender for that matter.

How long ago it you apply?? I believe you can check your status online. Or call them.

For large balances, I always recommend Direct Loans. They have the most payment options.

I'm sure it's been over six months. I will apply again.

Call them first....if your app is somewhere still in the system, you wont be able to submit a new one.

You have been very helpful, I will call them in the morning and follow up. I really need to work on getting my business together.

Thank you!

i have a default student loan and they are at a point of taking my income tax is there any company i can reconsolidation done

I was informed that if i don't pay $410 for the next 9 months until able to be in good standing or they will garnish my check for $450 for ever. Can i start paying $200 on my own without my check being garnished or is it too late.

Sounds like a rehab program. Can you give us some more information?? Like how much you owe??

I want to settle my student loan, However the collection agency tells me its better to enter the rehabilitayion plan because a settlement show negative on your credit score... Please give me some insight

WHAT THE COLLECTION AGAENCY ME IS THAT I CAN ENTER A 12 MONTH PROGRAM AND THEN AFTER 12 PAYMENTS . I WOULD GET THE INFORMATION AFTER PAYMENT ERASE FROM CREDIT . I OWE $5606 AND SETTLE IS $3600.00... WHAT SHOULD I DO

I rehabbed my student loans two years ago and I'm so glad that I was able to fix what I had done wrong. I did have to pay a set amount of nine months (on time and never late). After that, my loan went back to the dept. of ed and it shows on my credit report as if it had never been late. Now I'm making a payment each month that fits my budget. I'll never be late again! My rehab was handled through GC Services...and I can honestly say that they were really good to work with (I know..that's very strange to say lol!)

Once you default...really the only the light at the end of the tunnel is rehabbing in my opinion.

SO THE BEST OPTION IS THE REHAB...NOW IS ANYTHING BAD ABOUT SETTLEMENT AND THE CREDIT RATING

I believe that the settlement is going to be for less than the actual amount of the loan...so it'll probably say just that on the credit reports.

Like I said ~ when you do the rehab program...all of that negative stuff is completely erased and it looks like it never happened...it's as if you were ALWAYS current. A settlement will not give you that kind of a benefit.

not necessarily, I rehabbed a federal loan a few years ago and while Great Lakes Higher Education erased the negative marks, Sallie Mae never did. And according to Soaplady, Sallie Mae is under no obligation to delete the mark.

I too have a student loan that is giving me grief. My tuition was only $7000, but after 18 years of paying when I could and filing forebearance after forebearance it accrued to $24,000! I began to attack it with avengence 4 years ago, when I finally got a job that paid well enough, and have widdled it down to $13,000, which more than pays back my Tuition and then some. My question is, is there a way I can settle with a reduced amount, say half of the $13,000 owed? I recently lost my job and once again had to file a forebearance. I just want this to be finished. It has been a plague for 21 years now. Any advice would be great.

Nope. Your loan is government insured, which means your lender has no incentive to settle since your guarantor will pay them in full. The only time you can settle on a student loan is if you default....however defaulting adds additional collection fees to your balance and only then do they settle but usually not for more than the collection fees they have added. Settling off on interest and principal is very rare.

So, if these companies are purchasing the student loan debt for PENNIES on the dollar, would it not make sense for the BORROWER to settle for penies on the dollar owed? Its sounds like a system that is beneficial for those in default, but yet the power that comes along with greed is getting in the way!
Does the word SCAM, come into the lexicon?
The hole the borrower is digging keeps getting deeper by the month with payments. Virtually endless.
And it does not end upon death of the borrower.
Wow.

Exduzit....maybe you should do some research for spouting your mouth off about something you know absolutely nothing about. It you had bothered to read this forum, you would have learned a lot.

Student loans in both the federal and private systems are NEVER SOLD. Period. For DOE and FFELP loans, the guaranty remains with the federal government as it is FEDERAL debt. Taxpayer money. Hardly a scam. Defaults actually end up costing the lenders and servicers money.

SOAPLADY Said
"government insured, which means your lender has no incentive "to settle" since your guarantor"....

which means, the bank was paid by the US government DOE...unlike a credit card, who sells the debt for pennies on the dollar and a CA bid on those debts...
What am I missing?

Government insured NOW sounds VERY misleading..
BTW
How many student have defaulted on their student loand since 1980?

PSS:
Hey SOAPLADY, didn't you say you made over 100K as a CA?

No...again you are WRONG. DOE retains ownship and they place the accounts with CA's...it is called third party collections. The CA's on average earn a 9% commision.

FFELP (Federal Family Education Loan Program)loans are originated thru regular banks...Citibank, Wells Fargo, Credit Unions etc. They are federally insured by a guarantor (either regional or state) and the DOE.

Yup....made well in excess of $100K one year. However I was on average collecting in excess of $5 million in defaulted loans per month.

I RECEIVED A LETTER FROM NYSHEC ON 1-17-09 THAT SAID TO PAY $3589.00 IMMEDIATELY, I RECEIVED THE LETTER ON 1-22-09, WHEN I PHONED, I WAS TOLD THEY SENT THE ACCOUNT TO ECMC FOR COLLECTION...5 DAYS AND THEY PASSED TO COLLECTION...WHY THE SHORT TURN AROUND?
WHAT DO I DO NOW?
I HAVE THAT SAVED THAT AMOUNT UNDER MY MATTRESS.
I WORK AS A PART-TIME WAITER...
CAN I MAKE AN OFFER TO SETTLE?
IS IT BETTER TO WORK WITH NYSHEC OR ECMC?

THANKS FOR ANY INSIGHT YOU CAN OFFER!

ECMC is also a guarantor...did you file BK in the past??

If NYHEC is telling you that ECMC has the account, you must work with ECMC.

Settlements for student loans are not like credit card debts nor is the collections. Settlements are usually no more than dropping some to all of the collection fees they added on top of your balance. Call and talk to ECMC...although they may have placed it with a CA. You also have the option of doing a rehab or a consolidation to resolve the default.

NO BK...
ONE SCHOOL I WENT TO WROTE OFF THE DEBT OWED AFTER I MADE A PAYMENT OFFER TO SETTLE.

NOW, IF I CALL A SCHOOL AND NEGOTIATE A SETTLEMENT OF DEBT, IS THAT FORTHRIGHT AND LEGAL ON MY PART?
AFTERALL, IT IS MY DEBT.

WHAT IS A 20 YEAR CLAUSE?

I ALSO HEARD
- IT'S BEST NOT TALK TO A CA ON THE PHONE.
- TO GET YOUR TERMS IN WRITING FROM A CA.
- TO SEND ALL CORRESPONDENCE VIA REGISTERED TO CA
- PENALTIES & INTEREST ARE ADD ONS TO PAD CA PROFITS.
- TIME IS ON YOUR SIDE.
- NEVER LOOK TOO EAGER TO SETTLE.

WHAT DO YOU FEEL ABOUT THE ABOVE STATEMENTS.
ARE THEY PERTAINENT TO STUDENT LOANS?

THANKS AGAIN..
SO MANY QUESTIONS.
SO LITTLE MONEY!

Schools dont write off the debt per se....it just becomes inactive Your transcripts will be frozen and if you attended a public school, they can file for tax offset.

No clue what a 20 year clause is.

When dealing with student loans, forget everything your have heard.
-Student loans will not negotiate via the mail, only over the phone.
-You will not get anything in writing...you have a promisorry note already in place covering all the terms. You agreed to balance in full on demand in case of default.
-there will not be any correspondance to send
-interest you already agreed to when borrowing the funds and are federally set each year. Collection fees are charged by your guarantor up to 25% and are also federally mandated.
The CA earns an average of 9%.

SO WHEN I RECEIVED A LETTER SAYING TO PAY $3589.00
- WAS THAT THE INITIAL AMOUNT?

WHAT DO I DO NOW?
I HAVE SAVED THAT AMOUNT UNDER MY MATTRESS.
ALSO
WHAT CAN THE BORROWER NEGOTIATE, WITH 9% IN THE BACK OF THE CA's HEAD...PRINCIPLE W/ O FEES?
OR IS IT A MOOT POINT?

WHAT WOULD YOU DO?
THANKS AGAIN

How long ago did you default? usually the collection fees are added at 60 days post default.

ITS BEEEN A WHILE...I DONT KNOW?
ITS NOT BEEN FOUR SCORE AND SEVEN YEARS AGO...
A LITTLE LESS THAN THAT.

IS THERE A FEDERALLY MANDATED CUT OFF POINT?

I'VE READ SOMEWHERE LIKE 20- 25 YEARS PAST POINT OF ORIGINATION OF DEBT, SOME SORT OF NONSENSE...

WHATS YOUR TAKE?

you mentioned
"the collection fees are added at 60 ..."

There is no SOL ....ever.

If you have been in default years, then your collectionn fees are already part of your balance.

SO EVEN IF I ONLY OWED 3000 BUCKS IN PRINCIPLE DEBT,
THE INTEREST AND PENALTIES ARE ADDED ONTO THOSE 3G's...
AND HAVE ACCRUED ANNUALLY FOR 19 YEARS AT 2%
AND YEAR AFTER YEAR TIL..
WHENEVER?
WOW..
NO WONDER THE USA IS IN THE STATE THAT ITS IN...
THAT REALLY SUCKS.....
ps:
they, the DOE/BANKS/CREDIT CO's dont want to change it either,
but the mantra is MORE EDUCATION...
wow
LITTLE DO THOSE POOR SOPS KNOW THAT 63% OF ALL HIGHR EDUCATION BORROWERS END UP IN DEBT...AMD TAKES AN AVERAGE OF 15 YEARS TO REPAY...

God Save us all...

Tanks SOAPBOX

Well interest rates 19 years ago averaged 7-14% and would have been capitalized over the years.

Times are so different now. I saved for college while I was in high school and got the best grades I could and got scholarships. Being from a single parent home, I knew I could get help from my mom. I worked during the summers and during high school and college. I had debt when I graduated but I moved back home and worked to pay off my debt. Two jobs...corportate lawyer during the day and a bookeeper for a bar at night. I rode the bus and subway. Got all my debt paid off in 4 years. Nowadays, kids come out of school and they want a new car, new apartment and all the trappings while the student loan goes into economic hardship. Yes I know this is a generalization but I saw it happening too much . I worked at a public university here in minnesota and kids would show up for school expecting the system to support them and would be shocked that they didnt qualify for enough because mommy and daddy made too much. They ended up borrowing private loans. These were the same kids who would not take an on campus job because it would take away from their "college experience"...i.e. partying. However when it came time to go to cancun for break, they would find the $$$.

This is puzzling . There is a group of people who have defaulted on student loans. Some irresponsibly, some due to being underemployed in their educated profession, some had hardships to various degrees, and some a combination of the above including waiting so long to repay that the loan is now beyond their financial ability to repay. Meaning that were they to attempt to borrow that same engorged amount as an original loan they would in no wise be considered(turned down).

So, the original lender continues to insist on keeping interest, penalties, and etc tangled in the original loan to the extent that this group is trapped in a forever downward spiral. They can't afford the engorged loan payments(even for rehab) so the collectors garnish them a penance(for how long by the way) or if they are self employed pass them by for years and years.

OR the CA will move them to a new loan(those in this group who may have "married up" come into(borrowed I noticed a couple of your people doing insanity) in oreder to "rehab" and move into that insanely large salvation loan I mean rehab loan which is just another form of servitude for only 25 years or until you and your family are fortunate enough for you to die. And then their misery ends in the grave(that was the governments concession to make these loans differant than taxes). Doesn't the CA make any money to set up a "sub intertest" payback with the original loan? Now I understand why I have no hope that the government will ever be able to help the economy.

There is something REAL wrong with a loan(albit agreed to at this point). That has no escape. When the government took a look at the loan "sharks" of the credit card industry I am a little curious why the credit card industry didn't site this reference to pull off the untimate coup de ta and trap the poor credit card debt people until death. I'm just saying...

Two questions: 1) How long is garnishment? With all other debts resolved could a person ever borrow money on a house with a garnishment on their record?
2) What does it take to bring the DE into court? Have you seen a court case within the CA for these any of these defaults were talking about? Do they end up as uncollectible ever?

Garnishment can stay in effect until the last penny is paid.

Borrowers are generally not taken to court unless they are self employed or have balances in excess of $100K. When I first started collecting, there was a 60 Minutes episode where a Doctor in California bragged about how he owed $300k in defaulted loans that he had no intention of paying back. He showed off his half million dollar home, expensive vehicle and boat,all of which he paid for in cash. Edfund was not amused...within the year he lost the house to the state of california. Others had their IRA's and other assets seized...all by edfund. (They would visit us yearly and updated us on cases and collections) So the guarantors do utilize the courts and their power of seizure, particularly the state agencies.

Trapped forever? Hardly. Under the ICR or Income Contingent Repayment Plan with the Direct Loan Consolidation Program, after 25 years of repayment they will write off any remaining balance. There is also the Public Service Loan cancellation program along with other programs to assist borrowers in certain fields with repayment or cancellation of their loans.

I JUST HEARD FROM A COLLEGE FRIEND WHO BORROWED 7.3 GRAND, PAID THE STATE WHEN SHE COULD but OVER THE PAST 30 YEARS BUT THE IRS as well as the STATE "OFFSET" HER 30 GRAND.

I'M CURIOUS WHERE 22 GRAND WENT?

A CRIMINAL ACT COMES INTO PLAY WITH PEOPLE AT DOE?

HOW DOES THE STATE ATTORNEY GENERALS OFFICE APPLY IN COLLEGE LOANS & MONEY LIKE THAT MENTIONED?

REPAYMENT FOR 25 YEARS SOUNDS MORE LIKE A LIFE PRISON SENTENCE FOR MANY AT A DEAD END JOB.
SO THOSE PRECIOUS FEW CAN GET A PEICE OF SHEEP SKIN HANGING ON THEIR WALL?
YOU CAN KEEP IT....
I'LL B TH UNEDUCATED MILLIONAIRE..
NOW TO GET JUNIOR TO SEE WHAT I SEE?

Capitalized interest and 25% in collection fees.

Attorney general forwards the money to the guarantor.

Look, post secondary education is not a right. Nobody is forced to borrow money ....students could work their way thru school and pay cash. But many borrow irresponsibly and go to schools they cannot afford. Others go on to college with no idea what they wanna be when they grow up. Yeah know sometimes the borrower has to take responsiblity for getting an education that will lead to employment. Most college degrees qualify you to do nothing.

Youth is wasted on the young, for sure.

NOW,
IF A LOAN WENT INTO COLLECTION
AND THE CA DID NOT COLLECT,
HOW LONG DOES THE CA HAVE TO COLLECT B4 IT GOES TO ANOTHER CA?

DO THE FEES ROLL OVER OR IS IT THE SAME FEE UNTIL DEBT IS COLLECTED?

HOW DOES IT WORK?
I MAY WANT TO WORK FOR A CA...
SOUNDS LIKE GOOD MONEY.

The accounts are pulled and sent to another CA if no payments are received about every 6-12 months....depends on the contract.

The fees are assessed by the by the guarantor and they continue to grow on each placement based on the balance. Example, a $10K loan is placed at CA #1...collection costs of 24% or $2400. A year later the account is pull and placed with CA #2...balance is now $11K due to accrued and capitalized interest. Collection fees are now $2640. The CA gets paid roughly 9% on each payment....sometimes a little higher for rehabs, depends on the client. So say you paid a $10K account in full.....the CA gets $900.

Student loan collector work harder than a credit card collector as they have to work on volume. The average fee for a 3rd party placed credit card fee is around 20%...higher for 3 and 4th account placements. However student loan collecting is not difficult, if you have the patience and stamina. It takes time to build your portfolio.....I was collecting for 10 years and I had a few lean months. Turn over in the collection field is high....most are not cut out for it. However for those of us who stuck it out, we had a blast!! We worked hard and made damn good money!

I realize these posts are from 2006, but I don't care. It gives me a chance to vent and report on progress in the student loan game. I graduated in 1995 with $37,000 in student loans. Unlike our naive friend here who "knew nothing" about their student loans, I knew fully what I was doing, but was too stupid to stop. I wanted to go back to school and have the day school experience that I didn't have as an 18 year old, so I did it at age 35. Once I graduated, an additional ten thousand dollars was tacked on for consolidated interest (I think because I had lapsed on one of my other student loan payments while I was overseas doing a study abroad program (you think you're dumb?) So I started out with $47,000 for a double major bachelors degree (ouch, it hurts my brain to think about it). I have been paying for ten years at around 8% interest and I have finally knocked it down to a measly $36,000. I keep hoping they will allow student loan reconsolidation for those us who didn't get the good interest rates, but so far, no banana. Sorry for your troubles, but methinks we get ourselves into these problems and only we will get ourselves out. Billy Bob Bonano

How about a Goverment Bail out. Can anyone spell AIG, GMC? I know that the SoapLady is right in saying, you borrowed and now pay but I hate and abhore the fact that too many people have their hands in trying to collect money from me that is not even there and only death can stop it and it will.

A school in North Carolina is trying to Consolidate a student loan for 1,200 twice. The more I explain to them that the loan is in consolidation the more they say it isn't. I am looking at the paperwork from direct loan and telling them the loan has been consolidated, yet they are telling me it isnt. They have given 2 different set of numbers one to DMD and another to conserve something is not right

If the school has not been paid, then it may not have been included. you may want to look it up on nslds.

The school is the reason for the consolidation. Direct loans said they have been paid them they even gave me the check number. I have contacted the school several times. Something in this situation stinks

By the way I have looked it up but if the school fails to report the payment it can look as if you are in default. The whole ordeal is a mess

I sent a good faith payment USPostal money order with letter with the account number taken from the top of the Dept of Education, and it was returned to me with letter saying "zero balance on specified loan number".

The original loan was for 9,000.00 and now of course there is interest and has grown to 15000.

By them not accepting and returning my payment, what does that me for me. Is there a law that says if you try to pay a debt and it is not accepted, they have to forgive the debt???

What should I do?

Absolute myth that returning a payment means the debt has been forgiven. They probably couldnt find your account or you had the wrong account number. Or you sent it to the wrong place.

No such thing as a good faith payment with student loans.

I'm pretty much in panic mode I have a student loan with Sallie mae of a balance 43,000.00. I have follen behind with my payments and have already used all my time up with forebarences. I recieved a letter saying if i dont make the whole payment 43,000.00 by the 22nd which is tomorrow i will fall into default is their anything i can do?

Is this a private or federal loan?

federal

Do you qualify for deferments or have you used all of those up too?