Settling a Student Loan in Full??

Well since they have found your employment and you ceased them, expect a garnishment to start shortly.

Unfortunately, not paying you have brought this upon yourself. You agreed to all fees, interest and collection fees. FYI....the CA does not add the collection fees...those fees are added by the guarantor which sounds like in your case the DOE.

Settling...generally they will waive some to all of the collection fees. You will not get a $10K settlement. Now that they have your employment, they will just proceed with the garnishment. Even without a verification from your HR, the papers will be sent. The collector has probably played with your employers "dial by name" function or asked for you and hung up.

The DOE will not work with you....the CA handling the account will administer the garnishment. Unless you have reasonable cause like an FDCPA violation, they will not pull the account. The CA is hired under contract....they get paid whether you pay it voluntarily or not.

If the account has recently been subrogated by the DOE, you cannot prevent a tradeline from being added. Keep in mind everytime a new CA gets ahold of your account, they do a hard pull on your credit report....creditors know you owe. If you want to avoid a garnishment, I would suggest that you call the ca (without an attitute) and negotiate a plan to rehab.

SoapLady is correct, they will stop "playing" with you and go for your paycheck. I would have to agree, sounds like the garnish ball has started rolling. Try to work out something and quick...

If I had called them and asked them not to contact my work anymore as it is not permitted and they did it anyway by sending this fax to them doesn't that violate the FDCPA? If I tell the DOE this and offer a settlement would they pull it from the CA based on that?? Also what do you think a likely settlement I could negotiate based on my original info and amount owed above should or could be? What kind of payment could I expect a month if I ask them to rehab? I am on a tight budget and see that I could possible get a loan to pay off if they settled for 12000 or so that would only make my monthly payments around $145 a month. It seems like they would want more to rehab it possibly? I always here these horror stories on here how they want people to pay 400 or 500 a month. I make decent money now $46,000 a year but my wife doesn't work, I have a 7 yr old and a mortgage of $1150 month plus car payment of $310 plus cc bills and other living expenses etc. So the $145 or so is doable but not much over that? What do you think? Thanks for your help so far.

Also in regards to my question above in my reply back what do you think of this company? ww w. mydefaultedloans. co m
I have read their webpage as was thinking about calling them to see what they could do or offer. Any thoughts good or bad on them? Also if it is still with the ca my loan amount through that company would be for the $19,000 (because of the collection fees added etc.) and not the $14,000 or so the Dept. of Ed says I really owe is that true or how do I get it reduced down or is it possible with this program?? Thanks.

Verifying your employment for a federal wage garnishment is not an FDCPA volation for a cease. They were not contacting you but your employer for a legal and pending purpose. So no, the DOE will not pull it...nor will they settle for the original amount.

What came first??? The student loan or the kid, house and car payment?? Your rehab payment based on your balance should be 1%...so about $190 per month. With a mortgage and a car payment and verified employment, I wouldnt be arguing at this point.

Not to mention, student loans, taxes, and child support/alimony are entirely different from other debts. On top of all that was said here, there is also no SOL. It will follow you to the end or until paid. And since it is a loan, interest will continue to accrue until it is paid.

Hi I hope someone can help me. I had 2 student loans one was a fraudulant student loan one was a good student loan for the last 20 years I have been trying to tell them that one of the loans did not belong to me so I finally got a lawyer and went to court. The judge agreed that one of the student loans did not belong to me and dismissed the judgement but told them they can persue the other student loan. They applied all money ganished or received from me to this student loan giving me a balance of $608.12 + intrest. Student loan wants to charge me 20 yrs. of intrest of $4,348.95 on a loan they did not want to even discuss with me until I took care of the 1st student loan that the judge threw out. Not to mention they didn't even mention this student loan in the judgement at all. Over the course of 20 yrs. I asked for a hearing with student loan and they were all canceled by student loan. What can I do to get a fair interest rate or even cut in half?

Nope. Who was the guarantor and was this a private or federal loan?

You agreed to the interest on the good loan so you should have been paying on that one the whole time, sending in payments voluntarily with the good loan account number.

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just wondering if you tried www. mydefaultedloan. c o m? Is this company a scam or did it really help you with your default loan?

You can resolve your own default without paying anyone else. Read the forum.

I have a private student loan in default and it has been turned over to a CA. I owe them around $7,000 which I just found out today. The CA contacted me and demand the amount to be paid in full within the next hour because it has passed 120 days and no payment plan could be negotiated. Im still a full time student with no job so I cant pay the full amount right away. They say they will just process it to my co-signer if I cant pay it in full. I saw this website call www. mydefaultedloans . c o m and contacted them and they say they could help me settle it for around $4000 and they can help me set up a payment plan of around a hundred a month. Does anyone know of this site and is it too good to be true? They say they will charge a fee of $750 and I must pay $250 first before they will contact the CA. Im still debating if this is a scam or not. Thanks for any help

It is too good to be true...it is a pile of BS. For starters they dont give long term payment plans for settlements. Plus with privates, if your cosignor has good credit or assets, they wont even talk settlement and even if they do, it is no where near the amount they are talking. You yourself can set up that $100 per month payment plan but that wont prevent them from suing you and your cosignor.

Is your cosignor aware of what is going on? And how could you NOT know this was going into default. Predefault letters and calls would have been made...plus if you are still in school? Did you leave school for a period of time?

I was able to settle my stafford loan with the CA for the principal + half of interest and collection fees, which in your case would be around 14k. Also check their math, and request payment history.

CA doesnt do any of the math.. Calculations all come from the guarantors computer accounting system.

jome26 soaplady is misinformed. The ca will not let you make a payment less than what they decide reasonable or not. The Ca most definitely charges interest,court fees anything they can possibly charge you for. If you have defaulted they will want it all or the payments they set up, even if you can't afford their amount. If you don't pay the amount the ca demand, they will garnish taxes, both state and federal, wages and will sue you for anything you own. Your co-signer is also subject to the same treatment if they choose not to make payments. I have found nothing so far that says mydefaultedloans is a scam or that they won't do what they say. They offer a 100% money back guarantee if you loans are not consolidated. I have personally spoke to two different reps from there. I have no reason at this point to believe fraudulence.

Sorry nimbyfam but YOU are misinformed.

For starters , you are mixing up private and federal loans. Federal loans do not sue, but they can garnish wages and state and federal taxes. Only private loans have cosignors and they are the ones who sue.

The CA does not charge you a penny....the guarantor does all calculations and they pass all charges to the CA.

There is no such thing as a 100% money back guarantee....someone is handling you a line there.

I will NEVER pay my student loans! hahahahahaahahahahahahhahahahahahahaha muahahahahahahaah

The last laugh will be on you.....if federal loans they will garnish your social security. If private, they will sue you.

Is it possible to settle in full with ASA? My original loan was from 1993 and I have been paying on for years. I've had deferments and forebearances of course. Now I stay home with a terminal child and have no income and have defaulted. It's a FFEL Consolidated and I still owe $6k. I've been sending $25/month (piddling, I know) to Sallie Mae but ASA sent a demand letter for payment in full by June 22. Is there any negotiation possible with them? Thanks

Is the $6k with the default collection fees???

As a general rule, they will only settle off on the collection fees.

$6k principal and interest, another $1100 in collection fees. I just thought *maybe* since I've been paying for 18 years I could get some kind of break. lol

Thanks!