Awaiting Disability and being harrassed
Date: Tue, 05/09/2006 - 19:49
Awaiting Disability and being harrassed
I have an old student loan from 1990 that I'm being harrassed about. This has a long history, but I will shorten as much as I can. I originally went to a business school in 1990 called International Business College. I went for approximately 6 months on a PELL Grant, which paid for a small clerk/typist course I signed up for. I was told by faculty that is was standard to take out student loan as well for subsistence money since it was difficult to have class 40 hours a week, and study, and work full time. I did this. When the loan check came in I was told to sign over the check to the school, and that this was "standard" (I found out that they were doing this to all students in Las Cruces, NM, most of whom were barely speaking English).
I received approximately 3 checks in the amount of 275.00 for subsistence, and approximately 667.00 dollars went for books. When the checks stopped coming every month as promised they always had a convenient excuse, but nothing stated in paperwork I signed.
After 6 months I had to drop out because I could no longer continue. The school sent back the PELL grant and used the Student Loan to pay for a course (not the one I signed for, but the most expensive course they had) and said I could always come back. Dept. of Ed. called within 30 days and wanted no less than $50.00 dollars a month and would not negotiate. I was not able to pay that amount and they were unwilling to help. The loan was immediately turned over to collections.
I've dealt with this for YEARS. They took 3 years of my taxes (2 of those years I was on food stamps.). After 7 years, it seemed it was over. But then they started calling again wanting to do an "income contingency plan". I knew my bills very well and was managing my money and could afford 16.00 dollars a month to go to this. They wanted no less than 75.00 and were unwilling again to negotiate.
I then filed paperwork to have the issue looked into what Internation Business College did. They deemed that it was legal and fair.
In 2004 I became ill. I was diagnosed with a rare illness that effects my immune system and I have Chronic Fatigue as well. Since I was no longer able to work, I moved home, my car went back to the creditor, and I filed for disability. Which has been a battle. Dept. of Ed. sent me a notice that my loan was "reactivated" (this is all confusing to me)and they would be seeking taxes again. I have not been able to file because I have not had any income, I'm on state disability awaiting outcome of SSDI, and indegent. I filed paperwork with Dept. of Ed. and had my doctor fill out necessary forms for loan discharge. 3 months later I received a notice that it was denied by Dept. of Ed. based on "Medical Failure" on their terms of total and permanent disability. 30 days later I receive a notice from Dept. of Ed. basically stating that they coming after me with a vengeance. Now I'm receiving harrassing calls from a place called Collectcorp. which they've turned over the loan to. This loan was originally 2600.00 dollars. The principal now is 2014.00, interest is 1889.90, making the total balance they are trying to collect 3,904.03. For a loan I never used. I've always said to Dept. of Ed. that I was happy and willing to pay back what I received from International Business College which would amount to about 1600.00 dollars, which, after 3 years of taxes has more than covered that.
I can handle other creditors in regards to filing for disability and those issues, but I have no idea how to deal with this student loan issue, or Collectcorp.
The people handling my disability say just to tell them I've filed for disability, I have no money or means of income, and to not call me anymore. But these Collectcorp. people are vicious from what I hear and they've only just begun. HELP! What can I do?
Dave :cry:
Dave, I feel for you. I used to collect student loans at Collect
Dave, I feel for you. I used to collect student loans at Collection Company of America, which is an agency that respects the fdcpa and is in the business of helping people. I too have heard bad things about Collectcorp. I don't know why the DOE would contract with an agency that harasses people and embarasses them!
Anyway, as I remember, here is the basic rundown. You are out of work, pending disability, and have no assets. Also, since the debt is only four figures, I assure you that the DOE won't pursue litigation because it is expensive and time consuming. They rarely litigate any loan under $50,000. They also have nothing to garnish, offset, or attach, sao don't worry yourself into a frenzy because there is nothing they can do to you except call and make noise.
Since you became ill after you took out the loan, you are entitled to claim disability. I believe what they meant by medical failure based on their terms of total and permanent disability is that it is possible for you to work certain jobs. Total disability in their terms means completely unable to work at all.
I've sent disability and hardship forms out to debtors for medical reasons that are beyond my wildeast dreams! I've spoken to a woman who was a multiple amputee! A man who was comatose for two years after a car wreck, and once he woke up, saw that he'd gained 200 pounds while asleep, and learned that he had a son that his ex-fiancee hid from him! This fellow had the best of intentions, he was working part-time and was willing to pay $55 monthly on a rehabilitation so he could boost his credit and buy a home for himself and his son to live in! My heart went out to this gentlemen, but tragically he couldn't follow through becaue he got sick again! I've also spoken to a man who was exposed to toxic chemicals during Desert Storm, and now his bones are like chalk and his ligaments like rubber bands, but he wouldn't give up on his kids!
The truth is, you're not the only one going through this. Also, the DOE and Collectcorp can't do anything to you. If they do indeed try litigation, so what? Just show up for court with all your medical documents and you will not lose!
I did this for six months, from what I've seen on the inside, you really have nothing to fear. Let Collectcorp act like a bunch of big scary boogeymen. It is all bark and no bite. Just don't take thier calls and keep trying on filing for disability because no matter what they saym you are entitled to it!
Good luck,
Ari
Thank You so much for your reply Ari. This has made me feel so
Thank You so much for your reply Ari. This has made me feel so much better! I'm still kind of freaked out that DOE sent this to Collectcorp. The legal firm representing my disability case kind of said the same thing you did as far as the creditors not being able to really do anything because of my current situation. But I really needed an "inside" perspective. I've already been told too that winning my disability case is going to be an uphill battle. It's already going on two years, I've been denied the first two times, and now awaiting my first administrative law judge date (which could be awhile still). I've been told it may even take refiling a second and third time. When you have a rare illness with not enough medical data (data that doctors disagree on), Social Security is not very understanding. I don't think they are too understanding after some of the stories I've heard anyway. I met a woman who's mother was in renal failure and they kept denying her, saying she "could work part-time.". That's just crazy! My casemanager with SRS said she's come to the notion that they must pick names out of a hat to see who is allowed and who is denied based on cases she's had. Although this is frustrating, I know I am entitled to it, I can no longer work a regular job, and this is just what I have to do. Thank you for explaining DOE's position on "total and permanent disability". Yes, I probably could stuff envelopes at home part-time now...but that doesn't exactly make me self-sufficient. It's too bad that they don't understand that.
If I tell or write Collectcorp. to stop calling me are they bound by this? I'm more concerned for my other family members who have to take the calls. Also, would it benefit me at this point to file bankruptcy considering my situation?
It's true, the beaurocrats in the collection agencies, the gover
It's true, the beaurocrats in the collection agencies, the government, and creditors do think only in absolutes!
As for your family members and taking the calls, you're wrong! They don't have to. it is their phone line adn they can send Collectcopr a cease communications letter so you guys can have some peace and quiet while you get this squared away.
Unfortunately, student loans can't be discharged in a bankrupcy, so proving your disability - which you will - is you only hope.
Keep my posted on how things go!