I can help with your Student Loan(s)

[LynnInMN]

The OP is in her 40's. You are trying to establish her on a 25 year plan now? Essentially, you want her to be a debt slave for the rest of her life.

 

I stand by looking into bankruptcy first. If that does not pan out, then perhaps you can look into the other route. A

 

Did you read what I wrote above?? She would not pass the Brunner test as she just finished school. Do you actually understand the process of filing bankrtuptcy on student loans?? It is a 3 part test, this being the third part...

•A good faith effort was made to repay your student loan before you filed for bankruptcy. Effectively, this means you have been faithfully repaying your college loan for a minimum of five years.

 

I know people in their 50's who went back to school and now have loans. Paying them at 40-50 years old is no different from someone at 20 years old. It is the risk you take going to school.

[Cosmos Human]

The OP is in her 40's. You are trying to establish her on a 25 year plan now? Essentially, you want her to be a debt slave for the rest of her life.

 

I stand by looking into bankruptcy first. If that does not pan out, then perhaps you can look into the other route. A

 

Did you read what I wrote above?? She would not pass the Brunner test as she just finished school. Do you actually understand the process of filing bankrtuptcy on student loans?? It is a 3 part test, this being the third part...

•A good faith effort was made to repay your student loan before you filed for bankruptcy. Effectively, this means you have been faithfully repaying your college loan for a minimum of five years.

 

I know people in their 50's who went back to school and now have loans. Paying them at 40-50 years old is no different from someone at 20 years old. It is the risk you take going to school.

 

You are right. I fully understand. I probably would never pass the Brunner test.

[OnTime]

Wow guys. Okay. Thanks so much to EVERYONE for posting your advice. Whether it is a feasible idea or not, it is extremely helpful to me to know that there are avenues out there and also to learn via your posts what I am really facing here. So, Lynne....I am going to take your advice and look into applying for the direct consolidation of all of my loans. I was already thinking of putting together a *good faith* letter pleading with Sallie Mae to remove some of the late reports to the CB's. I made a listing of my entire journey through all of my schooling, all of the loans, and my financial and employment status all throughout this period. I have the tax returns and the public assistance food stamp qualifications to prove my dire financial status over these years.

 

I appreciate all of the bare bones advice and keeping everything frank. I need to know this. And, as I look at my situation, it's almost like I have suffered somewhat of a "civil disability" in that I have gone through being selected for jobs and then being turned away due to my poor credit which is a direct result of my having these abhorrent lates on my school loans and the no revolving credit. I, *FOOLISHLY*, tried to stay away from even a secured card because I thought it would be too tempting and vowed many years ago that if I couldn't purchase it with cash, then I don't need it. That is the right attitude but it caused me to miss out on the benefit of having the open revolving credit. So...now I know.

 

I will get a secured card. Write my letter to Sallie Mae pleading with them and including documentation of my status all these years and I will look into the direct consolidation. This is better than nothing. this is so much better than just being victimized by my own ignorance. THANK YOU! I have been so demoralized the past few days due to this situation. BTW, to the poster who asked, I have one kid in college ( a freshman), my ex and I have paid his schooling and he has his Pell and then a couple of scholarships. My other child is a junior in high school and she is looking at attending a private university out of state. Her grades are good and she attends a nationally ranked high school. I'm really trying to avoid any school loans for either of them so she may have to attend a public university in state if she doesn't get the scholarship she needs. We shall see. Thanks again!

[KevinD]

I wish I could tell every person considering a federal school loan one thing:

 

Borrowing from Uncle Sam is worse than borrowing from the Mob.

[LynnInMN]

I wish I could tell every person considering a federal school loan one thing:

 

Borrowing from Uncle Sam is worse than borrowing from the Mob.

 

Borrowing from Uncle Sam is some people's only way to get an education. How many lenders do you know that will allow you to go defer you payments for years and then not charge you interest (on sub loans)? How many lenders will right off your balance for public service after 10 years??? How many will defer them because you are broke and then let you pay as a portion of your income??

 

If you properly manage your federal aid, it is a breeze. If you goof off and act ignorant towards them, off course they are going to act like the mob.

 

Alternative...work your way thru school part time, get scholarships or just dont go to school. Post seondary education is NOT a right.

[KevinD]

That's fine as long as you realize that you will be giving up every single consumer protection that we take for granted as Americans when you sign on the dotted line.

 

No FDCPA, no state laws, NOTHING will help you if you are in a dispute with them. There is no statute of limitations on collections. They can garnish your income down to $9000 a year and you have no legal recourse. Right now they are garnishing the Social Security of 90 year olds for 40 year old debt whether it is valid or not. They do not care, the system does not work.

 

How can they do this? The Government wrote the laws for themselves.

 

I take back what I said about the Mob. It's an insult to the Mob. The system and the law concerning federal student loans is more tyranical and evil than the Mob ever thought of being.

[nell84]

Hi,

i suggest you to solve your loan problem get easy loan for student in easy credit now its very possible more information about this PLEASE DO NOT POST AN OUTBOUND LINK WITHOUT PRIOR APPROVAL.

Edited October 10, 2012 by MarvBear
Stealth advertising no allowed here.

[LynnInMN]

The FDCPA most certainly DOES apply. And there is an ombudsman for valid disputes.

[KevinD]

The FDCPA most certainly DOES apply. And there is an ombudsman for valid disputes.

 

The FDCPA is trumped by The Debt Collection Improvement Act of 1996 (31 U.S.C. Section 3716©(A)(i), as it clearly states in the FDCPA.

 

I can assure anybody reading this that the FDCPA won't help you, and the Ombudman is a joke. Nobody is going to help you. The only thing that will help you is if you can PROVE you paid it 20. 30, or 40 years ago. Hardship applications are denied, stating that $750.00 is an adequate amount to live on.

 

Protections on paper are theoretical, Lynn.

 

They do what they please. This law is an abberation, devoid of any consumer protection. Congress wanting this money from the elderly and disabled wins over all. You can get a lawyer with the money you have left over from the $750.00 a month they leave you after your offset, but that won't do you any good, either.

[whipster]

Direct Consolidation is the best route. Do the ICR not the IBR. I had several years of ZERO payments that count toward my 25 years, right now I pay about 125. They look at your Tax forms every year and if you don't make enough to pay, you don't pay. Eventually these will be dischargeable or something else will be passed to get the huge debt off borrowers. My principle started out at about 30K and now thru Sallie Mae crap had grown to over 120K. This is interest that they capitalized when I didn't know any better or had any way to pay. Sallie Mae is the devil. Get away from them as fast as you can.

[whipster]

Just to add my IMO...

 

The OP here was probably some sort of shill for collectors. Hopefully nobody sent any real info to him/her/it.

 

This whole thread should be deleted.

[breeze]

So you would advise people not to deal with collectors of federally insured student loans? You really have no choice, so it's better to have someone who wants to help you than to have someone who doesn't care. Some of you really don't understand about student loans. You cannot walk away from them like you can other kinds of credit. Can't be done.

 

Advising people what a raw deal they had, or that this is one of those nasty collectors, will not help them. They will pay eventually, either by planning the payments and working it out, or having money grabbed when they least expect it.

 

This is not like the credit forum. This is very different, that's why it's off in it's own location. We advise you to talk to the collectors. Pay them. You will, now or later, voluntarily or involuntarily.

 

Student loans are easy to get, the rates are low, but you have no choice about paying them back. I would advise people who have other means of paying for school to use the other means. If they have good credit, and have unsecured lines of credit, use them to pay off the student loans. Whatever it takes.

[LynnInMN]

From my experience with the DOE, Sloanhelper probably got/could have gotten himself into a lot of trouble. We were not permitted to access accounts that we were not personally assigned to. Every time you touch a federal collection account in the system, it leaves a tracking code plus you have to leave a comment as to why you were accessing the account. If he was counselling via this site and having accounts assigned to him, it could have raised questions. And god forbid that he ever did a collection call from home...the DOE would have had his flowers.

[Bohemian]

Direct Consolidation is the best route. Do the ICR not the IBR. I had several years of ZERO payments that count toward my 25 years, right now I pay about 125. They look at your Tax forms every year and if you don't make enough to pay, you don't pay. Eventually these will be dischargeable or something else will be passed to get the huge debt off borrowers. My principle started out at about 30K and now thru Sallie Mae crap had grown to over 120K. This is interest that they capitalized when I didn't know any better or had any way to pay. Sallie Mae is the devil. Get away from them as fast as you can.

 

Why ICR and not IBR? I just started the consolidation process and the IBR looked right... but it was also suggested by Direct Loans, AND I think it is the oe I need to do in order to have loan forgiveness after 120 payments and working in public service. So, why do you choose the other?

[iAMbritaz]

I have been employed with theUnited Stated department of education (DOE) for over a year. I specialize in defaulted student loans and the rehabilitation program. I became increasingly aware of the problems and questions people had. I figured I would try and help the most people I could. I have come to this forum to see if I may be able to be of some assistance. Shoot away with questions or concerns. Also I would like to note that I am not here to argue or fight about policies or procedures that the DOE uses, I do not create they way they handle the defaulted loans and therefore cannot change anything, so please save your breathe because I will save mine.

 

 

 

Edit...If you have a topic that you wish not to share publicly you can always email me at SloanHelper@gmail.com

 

I have a SL through DIrect Loans, originally the loan was one loan for around 17k. Then they sold the loan TO THEMSELVES and split the loan up into three different entries on my CR. I recently got a forbearance in Feb, shouldn't that have cleared my past few delinquencies? I have late pays for 4 months preceding the forbearance. I would like to know if there would be anyway for me to get them to update my file for those 4 months to "PAID AS AGREED". Is this possible? I have a deferment now since I am in school.

 

I've sent the CRA's letter requesting that the information be updated.

[gmak]

Hello,

 

Well if you really can help I am at my mind's end,, stressed out full of anxiety.

 

Could you send me your email and I will contact you with me as I don't wish to post specifics here.

 

I've received a demand for the full loan amount with devastating collection fees and interest.

 

Please Help ASAP

 

Thanks

 

 

[LynnInMN]

Hello,

 

Well if you really can help I am at my mind's end,, stressed out full of anxiety.

 

Could you send me your email and I will contact you with me as I don't wish to post specifics here.

 

I've received a demand for the full loan amount with devastating collection fees and interest.

 

Please Help ASAP

 

Thanks

 

Post your specifics here....I dont believe sloanhelper is coming back.

 

You defaulted....and if it is a federal loan, all is not lost. You can resolve it.

[gmak]

Federal Sallimae loans totaled about 32,000 originally

Payment in tax refunds held and payment made by me about 10,000 (all went to interest)

turned over to HESC and Salliemae added 23,000 collection fees and interest

So balance is now about 56,000

 

I sent for help to the government and a correspondence was sent to Mr Reed NYS senator

Senator Reed sent a settlement offer on my behalf for 7,500 which HESC refused

 

 

After that a woman from HESC called and threatened that they were going to place me in an Government owned apartment and take my home ( a 1960 trailer) and then she stated that "that is just for a start" "This is NEVER going to go away" "Get a job" she said.

 

Well, there has been at least 7 collection agencies to date with 3 in the last two years.

 

 

 

I received a correspondence a month or so back from a new collection agency "Preformant" out of California Demanding payment in full.

 

November 15th I received another letter stating that if I didn't make arrangements by November 15th to pay in full that they will use all means at their command to collect.....

 

 

 

My story,

So, I went back to school at a late age as directed by the employment ins. office who insisted when I was signing for student loans each semester that I need not worry. I would land a "local" job that would pay in the 75,000 range. They had this in a book that they showed me.

 

I got out of school and the best job I was offered payed about 30,000 and I have been bounced around and I have worked for 3-4 different companies. The last employment company had me contracted to a local company and I worked several jobs at several locations for them over 6 years.

 

I was laid off 2 years ago. I have tried to get back with the same contract company to no avail. I have made several other job attempts but I have not been offered a job.

 

 

 

Now, my situation

 

I am over 55. Unemployed and I will be seeking Government assistance for my winter heat and utilities as I can not currently afford them

I live alone and I own a small lot with a 10x50 mobile home.up on a hill out of town

No real savings.. Some in a 401

1986 pontiac and a yamaha motorcycle

My net worth is less than 50% of the Loan demand

 

 

I have been followed, stalked and harrased in the last 2 years by different agencies which has created great anxiety and stress. I have trouble sleeping at times because of this threat to take what I own and put me out on the street.

 

Please give a solution that works... I am over 55 , not rich, not employed. I ran a loan amortalization on the demand loan amount. It is impossible to be paid off by my retirement age ,, if I do live that long.

 

So that means due to the extra fees and the interests they will hound me the rest of my life. I can never have anything because I got an education???

 

 

Why won't HESC take a settlement amount that would give them instant cash which they could invest. Why do I have to suffer from and almost 50% increase in the original loan amount??? And why do I have to accept that all my payments have gone to interest.??

 

New York State Senator Tom Reed,, are you reading this????

 

It takes a person's life to end to forgive a student loan. While huge corporations make millions in profits by doing just what they are doing to me

[LynnInMN]

Federal Sallimae loans totaled about 32,000 originally

Payment in tax refunds held and payment made by me about 10,000 (all went to interest)

turned over to HESC and Salliemae added 23,000 collection fees and interest

So balance is now about 56,000

 

Salliemae did NOT add collection fees...HESC as your guarantor did. They are federally mandated 60 days post default.

 

I sent for help to the government and a correspondence was sent to Mr Reed NYS senator

Senator Reed sent a settlement offer on my behalf for 7,500 which HESC refused

 

Of course they refused.

 

Have any of the collection agencies talk to you about Direct Loans Consolidation Loan program?? Easy peasy...you could have been out of default eons ages ago with payments geared to income.

[gmak]

Direct loans,

 

No one has explained anything about these. I was sent a form and I do not understand. What I do understand is that they about doubled the loan amount with all my paid payments just going to interest? They doubled their money placing the cost on me that I can't possibly ever pay back and passing off a new loan to another lender. This leaves a pay till you die payment on me?? I am forced to agree to a new loan at twice the price as I near retirement age.

 

I'm not being negative, just giving the facts.

 

So, I've made an honest attempt to try to settle the account in my situation to rid myself of a till death do we part burden. Am I wrong here?

 

Help to settle this would be greatly appreciated ASAP

[LynnInMN]

You borrowed a federal loan and they are not doing to settle with you with what you are offering. As a general rule, they only settle off on a portion of the collection fees.

 

Do yourself a favor... go to https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

Get your app in and get out default.

[gmak]

I appreciate your help so please don't think elsewise ok,

 

I also had student loans that were held by some other bank. Those loans also had been doubled or more.

 

So I have a question. This other bank forgave a huge amount of the loans and let me make a one time settlement so all of these loans have been paid.

 

What is the difference and why can't HESC and I come to a settlement agreement?

 

Is there a settlement formula to calculate the amount that HESC would think ok to settle on?

 

Thanks

..