Allied Interstate Student loan debt, I can't afford to pay
Date: Thu, 01/08/2009 - 20:42
Allied Interstate Student loan debt, I can't afford to pay
They got a hold of me a couple of days a go and after a hour of me crying explaining that I'm pregnant and alone, make $10 an hour at a restaurant job that I some times get 40 hours at, still have to pay my OBGYN my full deductible before april, and all my other financial hardships, they pull 3 people out on me and beat me down until I agree to pay them $139 a month for 9 months. Money I can't afford, I still have to save up money for when I take my maternity leave to pay rent, bills and for the baby.
I'm very emotional right now so after 3 people telling me that they were going to garnish my pay check for $300 a month and it would be even more difficult for me taking care of my baby, and the government just wants their money, I caved and gave them my bank card info.
They say I owe 14,000 but they would waive the 3000 collection fee if I sign now. I didn't even make enough this last year to have to file a tax return because I was unemployed for 4 months.
Is there anything I can do? I really can't afford this right now.
Thanks for any advice,
Regina
From the collectors point of view....you are in default and it p
From the collectors point of view....you are in default and it preceeds the pregancy. You have been in default for 2 years plus it takes awhile to actually get to the default stage. They dont care....
Now what you can do. Under the law (higher education act) are entitled to "reasonable and affordable" payments under the law based on your income to enter into the rehab program which is what they are trying to do. The CA is required by law to work with you...failure to do so give you grounds to file a complaint with the student loan ombudsman. Option number #2 is to consolidate now with the US DOE's Direct Loan Program...you will automatically be assigned to the income contingent repayment plan which will give you very affordable payments. The link is in the sticky section at the top of the forum.
Have you applied for WIC and medical assistance?? You might be able to get help with your medical costs.
Offset deduction of Tax refund
Now that Allied interstate has my student loan collection why does the Dept of Education continue to take my tax refund? Does this money go to Allied or what? I didn't get my stimulus check or tax refund from last year or current.
Allied works as a third party CA....the DOE still owns your loa
Allied works as a third party CA....the DOE still owns your loan. Your taxes and payments all go the DOE.
Ok, you have the knowledge so maybe you can suggest a course of
Ok, you have the knowledge so maybe you can suggest a course of action. I have been default on my Student Loans for a 1-2 years b/c financially I was drained. Within the next month or so I am going to be back on my feet and able to pay. Can I stop the CA by taking action with the DOE? The amount owed is $25,000+, god knows what I was thinking when I took this money.
Once an account has been assigned to a CA, you can no longer wor
Once an account has been assigned to a CA, you can no longer work with the DOE. Even if you call them, they will automatically refer you to the CA.
You have to enter into repayment. Read the stickies at the top of this forum for information on rehab and consolidation. Those are your options for getting out of default.